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<br />. <br /> <br />. <br /> <br />. <br /> <br />Section 4. <br /> <br />System Efficiency, Extraordinary Conservation and Augmentation Projects <br /> <br />The States propose that the Secretary develop a policy and accounting procedure concerning <br />augmentation, extraordinary conservation, and system efficiency projects, including specific <br />extraordinary conservation projects, tributary conservation projects, introduction of non- <br />Colorado River System water, system efficiency improvements and exchange of non-Colorado <br />River System water. The accounting and recovery process would be referred to as "Intentionally <br />Created Smplus" consistent with the concept that the States will take actions to augment storage <br />of water in the Lower Colorado River Basin. The water would be distributed pursuant to Section <br />II(B)(2) of the Decree and forbearance agreements between the States, The rcs credits may not <br />be created or released without such forbearance agreements. <br /> <br />A. The pmposes ofthe Lake Mead Intentionally Created Surplus ("rCS") program <br />are to: <br /> <br />1. Help avoid shortages to the Lower Basin, For the purposes of determining <br />calendar year declarations of Domestic Smplus, Normal and Shortage <br />conditions, any rcs credits would be considered system water; <br /> <br />2, Benefit both Lake Mead and Lake Powell; and <br /> <br />3. Increase the surface elevations of both Lakes Powell and Mead to higher <br />levels than would have otherwise occurred. <br /> <br />B. <br /> <br />Extraordinary Conservation Storage Credits <br /> <br />1. Users of Colorado River water may create rcs credits through <br />extraordinary conservation under the following conditions: <br /> <br />a, A Boulder Canyon Project Act Section 5 Contractor ("Contractor") <br />shall repay all outstanding system payback obligations before it <br />can create rcs credits. <br /> <br />b. rcs credits can only be created if such water could have otherwise <br />been beneficially used. <br /> <br />c. A Contractor notifies Reclamation by September 15 of the amount <br />of rcs credits it wishes to create for the subsequent year. <br /> <br />2. rcs credits may be created only through extraordinary conservation <br />activities. These activities include: <br /> <br />a. Fallowing of land that currently is, historically was, and otherwise <br />would have been in the next year, irrigated. <br /> <br />b, <br /> <br />Canal lining programs <br /> <br />c. <br /> <br />Desalination programs <br /> <br />7 <br />