On August 15,2000, there was a second MTA light rail accident at the BWI International Terminal. The details and extent of
the accident are still under investigation and are not available at this time.

As of June 30,2000, the Baltimore Orioles have initiated an arbitration proceeding pursuant to its lease with the Maryland
Stadium Authority contending that it is entitled to reductions in rent or credits against future obligation by reason of an alleged
lack of parity between the Orioles' Authority Agreement and the Authority's separate lease with the Ravens. This contention
has been disputed by the Authority in the arbitration and will be vigorously contested before the panel of arbitrators. A hearing
on the Orioles claim is scheduled to begin on November 29,2000, and a decision is not likely to be rendered until early in 2001.
It is not possible at this time to evaluate the outcome or to estimate the possible cost in the event the Authority were to lose on
one or more issues.

19. Tobacco Settlement

Legislation enacted by the 1999 General Assembly established the Cigarette Restitution Fund for all revenues received from any
judgment against or settlement with the tobacco industry. Expenditures from the fund are made by an appropriation in the annual
State budget. The law provides that at least 50% of the appropriations shall be made for tobacco or health related purposes and the
remaining appropriations maybe for any public purpose. During the 2000 legislative session, appropriations for $102.5 million for
fiscal year 2000, and $162.3 million for fiscal year 2001 were authorized from the proceeds in the Cigarette Restitution Fund.

As part of the Master Settlement Agreement between the states and the tobacco companies, Maryland's share for fiscal year
2000 was $185,164,000. Pursuant to an order of the Circuit Court of Maryland, a portion of the proceeds are separately disbursed
by the Master Settlement Agreement Trustee to an escrow account for the joint benefit of the State of Maryland and legal counsel
which pursued this claim. The funds in the escrow account are held pending disposition of a lawsuit pertaining to the percentage of
the proceeds to be allocated to outside counsel. In fiscal year 2000, $138,837,000 and $46,327,000 were remitted to the State and
escrow agent, respectively.

It is estimated that the payments made to the State pursuant to the Master Settlement Agreement for the 10-year period for
the fiscal years 2001-2010 will total $1.8 billion, of which a yet-to-be-determined amount will go to outside counsel. However,
the actual amount paid each year will reflect adjustments for inflation and cigarette shipment volume.

20. Landfill Closure and Postclosure Care Costs:

State and Federal laws require the Maryland Environmental Service (the Service) to place a final cover on the Midshore
Regional Landfill (Midshore), which is expected to close in 2010, and the Easton Landfill (Easton), which is filled to capacity and
in the process of being closed, and to perform certain maintenance and monitoring functions at the landfill sites for thirty years after
closure. Although closure and post-closure care costs at Midshore will be paid near or after the date the landfill stops accepting
waste, the Service accrues a portion of these closure and post-closure care costs as a liability based on the estimated capacity of the
landfill that has been used to date, which was 57% as of June 30,2000. The Service recognized a liability for Easton equal to the
estimated total current cost of closure and post-closure care that has not been paid. A $4,705,000 liability is included in other
liabilities in the accompanying balance sheet of the Service. Total closure and post-closure care costs are currently estimated to be
approximately $8,153,000 as determined through engineering studies. Actual costs may be higher due to inflation.

Under recently promulgated federal regulations, the Service has satisfied its financial assurance requirements based upon the
local government financial ratio tests of the project participants as of June 30,1999. The Service expects to satisfy these requirements
as of June 30,2000, using the same criteria.

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