YES

3 decompositions
 #0 -----------
   4: hd(:(x,y)) -> x

 #1 -----------
   6: d(:(x,y)) -> :(x,:(x,d(y)))

 #2 -----------
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x,y)) -> :(s(x),inc(y))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x,y)) -> y

@Mutually Orthogonal
--- R
   4: hd(:(x,y)) -> x

--- S
   4: hd(:(x,y)) -> x


@Mutually Orthogonal
--- R
   6: d(:(x,y)) -> :(x,:(x,d(y)))

--- S
   6: d(:(x,y)) -> :(x,:(x,d(y)))


@Rule Labeling
--- R
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x,y)) -> :(s(x),inc(y))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x,y)) -> y

--- S
   1: nats() -> :(0(),inc(nats()))
   2: inc(:(x,y)) -> :(s(x),inc(y))
   3: inc(tl(nats())) -> tl(inc(nats()))
   5: tl(:(x,y)) -> y