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b. The amount of ICS credits that may be recovered by California in <br />any one year is limited to 400,000 acre-feet, by Nevada 300,000 <br />acre-feet and Arizona 300,000 acre-feet; provided that the May 1, <br />24-month study for that year does not indicate that a shortage <br />condition would be declared in the current or succeeding year. <br />C. If extraordinary weather conditions or water emergencies occur, a <br />Contractor may request that Reclamation increase its use of ICS <br />credits for that year. <br />d. A Contractor may request to reduce its use of ICS credits during <br />the year for any reason, including reduction in water demands. <br />e. If Reclamation releases water for flood control purposes, ICS <br />credits shall be reduced on a pro-rata basis among all holders of <br />ICS credits-- if necessary until no credits remain. In determining <br />the amount of Quantified Surplus, Reclamation shall not consider <br />the volume of ICS credits that will be available. <br />10. Contractors may begin to create ICS through extraordinary conservation <br />1) beginning in 2006 as a pilot program (which may be lost if the <br />Secretary does not adopt an extraordinary conservation program as part of <br />the Coordinated Operation of Lakes Powell and Mead) or 2) after adoption <br />of the Coordinated Operation for Lakes Powell and Mead until 2025. Any <br />ICS credits under this program remaining at the end of the program would <br />remain available for recovery for up to 10 years following termination of <br />the Program. <br />C. Tributary Conservation <br />' The Secretary should develop procedures in consultation with the States that would <br />permit Contractors to purchase and fallow annual or permanent water rights on tributaries <br />within the Lower Division States that have been used for a significant period of years and <br />were created prior to Congress' adoption of the Boulder Canyon Project Act that, when <br />retired, and verified by the Secretary, contribute water to the Colorado River mainstream <br />for diversion by the Contractor. The water recovered by the Contractor may be used for <br />municipal and industrial purposes only. This water would be in addition to the State's <br />basic apportionment and would be available during declared shortages. <br />It is intended that the water would be taken on a real-time basis and that not more than <br />95% of such water will be recovered; however, if storage were required, such stored <br />water would be subject to all provisions applicable to ICS credits created through <br />' extraordinary conservation. <br /> <br /> <br />9 <br />t