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1. System Efficiency ICS created pursuant to Article 2.3 of this <br />Forbearance Agreement because a large portion of the water saved by <br />this type of project will increase the quantity of water in storage. <br />2. Extraordinary Conservation ICS created by conversion of Tributary <br />Conservation ICS that was not released in the Year created, pursuant <br />to Article 2.1(E) of this Forbearance Agreement, because 5% of the <br />ICS is deducted at the time the Tributary Conservation ICS is created. <br />3. Extraordinary Conservation ICS created by conversion of Imported <br />ICS that was not released in the Year created, pursuant to Article <br />2.1(F) of this Forbearance Agreement, because 5% of the ICS is <br />deducted at the time the Imported ICS is created. <br />D. In addition to the conditions described above, creation of Extraordinary <br />Conservation ICS is subject to the following conditions: <br />1 Except as provided in Articles 2.2 and 2.4, Extraordinary Conservation <br />ICS can only be created if such water would have otherwise been <br />beneficially used. <br />2. The maximum total amount of Extraordinary Conservation ICS that <br />can be created during any Year is limited to the following: <br />a. 400,000 acre-feet for California Contractors; <br />b. 125,000 acre-feet for Nevada Contractors; and <br />c. 100,000 acre-feet for Arizona Contractors. <br />3. The maximum quantity of Extraordinary Conservation ICS that may <br />be accumulated in all IC5 Accounts, at any time, is limited to the <br />following: <br />a. 1,500,000 acre-feet for California Contractors; <br />b. 300,000 acre-feet for Nevada Contractors; and <br />c. 300,000 acre-feet for Arizona Contractors. <br />4. Except as provided in Articles 2.2 and 2.4, no category of surplus <br />water can be used to create Extraordinary Conservation ICS. <br />5. The quantity of Extraordinary Conservation ICS remaining in an <br />ICS Account at the end of each Year shall be diminished by annual <br />11 <br />