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, with respect to royalty rates, import, export, and use of raw materials, equipment and resources, use of land and water, safety measures, and marketing or export of commodities, which may lead to increased costs or demand for Occidental's products. Violation of certain governmental laws and regulations may result in strict liability charges.