Occidental's operations may be subject to new or amended laws and regulations, as well as new or different interpretations of existing laws and regulations. These laws include those related to drilling, flaring, and production techniques, such as hydraulic fracturing and acidization pipelines, royalty rates, import/export taxes, raw materials, and use of land water, air emissions, water recycling and disposal waste, and other sustainability initiatives, all of which may lead to increased costs or demand for Occidental's products. Violation of certain governmental laws may result in severe joint and multiple felony charges.