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. . \, \ \ 2003, projected unregulated inflow into Lake Powell for the 2003-04 water year was 6.802 maf, or 57 percent of the 30-year average. Without an executed Quantification Settlement Agreement, the Lower Division States' consumptive use of Colorado River water for calendar year 2003 is limited to 7.5 maf, i.e. Arizona 2.8 maf, California 4.4 maf, and Nevada 0.3 maf. For calendar year 2003, it is estimated the Central Arizona Project (CAP) will divert 1.610 maf, of which 0.273 mafis to be credited to the Arizona Water Bank. The Metropolitan Water District of Southern California (MWD) will be required to reduce its consumptive use to 0.592 maf or 48 percent of its actual use in 2002. Taking into account both measured and unmeasured return flows, the Lower Division States' consumptive use of Colorado River water for calendar year 2003, as forecasted by Reclamation, totals 7.375 maf and is distributed as follows: Arizona, 2.770 maf; California, 4.335 maf; and Nevada, 0.270 maf. The preliminary end-of-year estimate for 2003 California agricultural consumptive use of Colorado River water under the first three priorities and the sixth priority ofthe 1931 California Seven Party Agreement is 3.811 maf. This estimate is based on the collective use through May 2003 by the Palo Verde Irrigation District, the Yuma Project-Reservation Division (ypRD), the Imperial Irrigation District, and the Coachella Valley Water District. Figure I, found at the end of this report, depicts the historic projected end-of-year agricultural use for the year. Colorado River Ooerations 2004 Annual Operating Plan The second consultation meeting of the Colorado River Management Work Group is scheduled for August 6, 2003 to continue development of the 2004 Annual Operating Plan for the Colorado River System Reservoirs (2004 AOP). Also, during the August 6th meeting it is anticipated that the Work Group will continue discussions ofthe sixth review of the Long-Range Operating Criteria and the status of development of the Interim 602( a) Storage Guidelines. Included in the Board folder is a copy of the preliminary draft of the 2004 AOP including the secretarial determinations related to reservoir operations. Navajo Nation vs. Department a/the Interior At its April meeting, the Board discussed the Navajo Tribe's lawsuit filed against the Department ofthe Interior (DOl) regarding its management of the Lower Colorado River. In response to this action, the states of Arizona and Nevada and the Southern Nevada Water Authority, Central Arizona Project, and the Central Arizona Water Conservation District filed Motions to Intervene. On June 13th, the DOl and the Navajo Tribe filed a joint motion requesting the Court approve ajoint Stipulation. The Federal Defendants and the Navajo Nation stipulated: 2