Confusion about Productions

I have started to dabble with Productions and I really think it could be useful for me.  I like being able to organize elements I use across many projects into a production and being able to pull from there.

Maybe I was under an incorrect assumption, but when I pull a clip from a Production folder and edit into my current project, Premiere is still making a new reference clip in the current project.  Is this suppose to happen?  Or do I have a setting wrong somewhere?

Thanks!