Occidental Petroleum 2003 Annual Report Download - page 6

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the United States, largely by its own sales force and in certain export markets.
OxyChem sells its products at current market or market-related prices through
short- and long-term sales agreements.
No significant portion of OxyChem's business is dependent on a single
third-party customer. OxyChem generally does not manufacture its products
against a backlog of firm orders.
COMPETITION
Occidental's chemical business competes with numerous producers. Since most
of OxyChem's products are commodity in nature, they compete primarily on the
basis of price. Because OxyChem's products generally do not occupy proprietary
positions, OxyChem endeavors to be an efficient, low-cost producer.
CAPITAL EXPENDITURES
For information on capital expenditures, see the information under the
heading "Capital Expenditures" in the MD&A section of this report.
EMPLOYEES
Occidental employed 7,133 people at December 31, 2003, 5,697 of whom were
located in the United States. Occidental employed 2,995 people in oil and gas
operations and 3,087 people in chemical operations. An additional 1,051 people
were employed in administrative and headquarters functions. Approximately 640
U.S.-based employees are represented by labor unions.
Occidental has a long-standing policy to provide fair and equal employment
opportunities to all people without regard to race, color, religion, ethnicity,
gender, national origin, disability, age, sexual orientation, veteran status or
any other legally impermissible factor. Occidental maintains diversity and
outreach programs.
ENVIRONMENTAL REGULATION
For environmental-regulation information, including associated costs, see
the information under the heading "Environmental Liabilities and Expenditures"
in the MD&A section of this report.
AVAILABLE INFORMATION
Occidental makes the following information available free of charge through
its website at www.oxy.com:
>> Forms 10-K, 10-Q, 8-K and amendments to these forms as soon as reasonably
practicable after they are filed electronically with the SEC;
>> Other SEC filings, including Forms 3, 4 and 5; and
>> Corporate-governance information, including its corporate-governance
guidelines, board-committee charters and Code of Business Conduct.
Board-committee charters and the Code of Business Conduct are available to
stockholders upon request. (See Part III Item 10 of this report for further
information.)
ITEM 3 LEGAL PROCEEDINGS
For information regarding lawsuits, claims, commitments, contingencies and
related matters, see the information in Note 9 to the Consolidated Financial
Statements.
On October 1, 2003, the Environmental Protection Agency (EPA) served one of
Occidental's subsidiaries with an administrative compliance order and an
administrative complaint alleging certain violations of environmental laws at
the subsidiary's Pottstown, Pennsylvania facility. Although the order and
complaint do not propose any amount of penalties, Occidental believes the EPA
seeks penalties exceeding $100,000. Occidental's subsidiary disputes many of the
EPA's allegations. Occidental does not expect the resolution of this matter to
have a material effect on its financial condition or results of operations.
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