directors’ report  LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS ENVIRONMENTAL REGULATION OPTIONS 4 on the Transurban City Link Unit Trust The Trust has received $11.271 million from the TOJV under a Standstill arrangement pending the resolution of current litigation between Transurban City Link Limited, the TOJV and the Trust. This litigation relates the enforceability of liquidated damages and arbitration of TOJV’s disputation of the Independent Reviewer’s determination that TOJV is not entitled to extensions of time. However, Transurban and the TOJV are continuing discussions in an attempt to bring about a negotiated settlement on all matters in dispute between them. Both parties remain hopeful that a negotiated settlement can be achieved. As a result of the ongoing dispute, the $11.271 million has not been brought to account for the Statement of Financial Performance but have been accounted for as a liability due to the potential need to repay the provisional amounts if Transurban City Link Limited were found not to be entitled to Liquidated damages. Further information on likely developments in the operation of the Trust and the expected results of those operations have not been included in this report because the Responsible Entity believes it would be likely to result in unreasonable prejudice to the Trust. The operations of the Trust are subject to environmental regulations under both Commonwealth and State legislation. Transurban City Link Limited has the obligation to operate The Melbourne City Link which includes the Trust road. It has appointed Translink Operations Pty Limited (TLO to operate and maintain the Melbourne City Link. TLO must ensure it complies with EPA regulations. To meet this obligation, TLO monitors the emission of carbon monoxide, oxides of nitrogen and particulate matter from the Domain and Burnley Tunnel ventilation stacks. In addition, TLO monitors ambient air quality around the tunnels. Current monitoring indicates emission levels from the stacks are well below the EPA licence limits. TLO is also required to regularly test the quality of the groundwater being discharged into the Yarra River. Tests show the water meets the standards under State Environment Protection Policy for water. The Responsible Entity is not aware of any non compliance with any environmental regulations relating to the Trust Assets. Options over unissued Stapled Securities of Transurban City Link Limited and the Trust were granted to senior executives of Transurban City Link Limited under the Executive Option Plan on 26 April 2001. 2,350,000 options were issued during the year ended 30 June 2001. No Stapled Securities were issued during the year on the exercise of options.  2001 2000 $'000 $'000 Interests in the Trust issued during the financial year Units on issue at the beginning of the year 510,000 510,000 Units issued during the year - - Units on issue at the end of the year 510,000 510,000 Value of Assets Value of Trust assets at 30 June 3,292,895 3,194,426