Occidental's operations may be subject to new or amended laws and regulations, as well as different interpretations of existing laws and regulations, such as those pertaining to drilling, flaring, and production techniques, such as hydraulic fracturing and acidization, with respect to royalty rates, import, export, and use of raw materials, equipment and supplies, environmental protection measures, manufacturing of chemicals, and marketing of commodities, all of which may lead to increased costs or demand for Occidental's products. Violation of these laws and regulations may result in severe legal and punishable costs.