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<br />. <br /> <br />December 12, 2005 <br />Page 9 of 15 <br />Working Draft for Discussion <br /> <br />\Vater Created "is Exchange/Demand :\Ianagement <br /> <br />Description <br />Another system augmentation program identified is water created by <br />exchange/demand management. Entities such as The Metropolitan Water <br />District of Southern California (MWD) would take measures to reduce <br />demand for Colorado River water (such as replacement of Colorado River <br />water with other available non.Colorado River system sources or verified <br />conservation of Colorado River water), thereby creating credits such that <br />ICS can be used in a subsequent year. <br /> <br />. <br /> <br />Conditions <br />1. The permission to use ICS would be limited to credits available after a <br />reduction for evaporation losses in previous years, and a reduction to <br />benefit the system. <br /> <br />2. The ICS may be transferred to another entity in the same state at the <br />discretion of the entity holding the ICS credits. <br /> <br />3. The permission to use ICS would be suspended during a declared <br />shortage, but would be reinstated after the lake Mead condition <br />relUms to nonnal as long as a recoverable quantity of ICS is still <br />available. In the event of a shonage in the service area of the agency <br />that accumulated the credits to be recovered as ICS, the Secretary <br />would allow a ponion of the credirs to be recovered as ICS [with that <br />amount to be determined]. <br /> <br />. <br /> <br />4. If Flood Control Surplus or Quantified Surplus is available in any year, <br />the pennission to accumulate ICS credits would be suspended for that <br /> <br />9 <br />