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PERSONAL SAVINGS ACCOUNT

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					PERSONAL
SAVINGS ACCOUNT
Summary Plan Description
                                                                                                             PERSO NAL SAVI N GS ACCO U NT




CONTENTS


           HIGHLIGHTS	                                                                                                                                                   6

           EASY	PSA	ACCESS	THROUGH	OXYLINK	                                                                                                          8
              Your	OxyLink	Password  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 			8
              Your	OxyLink	Password	Is	the	Key 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 		9

           NOTICE	REGARDING	TRANSACTION	OVERLOAD,	SYSTEMS	
           FAILURES,	AND	FUND	VALUATION	DELAYS	                                                                                                                          9

           PSA	TRANSACTION	SUMMARY	                                                                                                                                      9

           DEFINITIONS	                                                                                                                                                12

           ELIGIBILITY	                                                                                                                                                   14
              Who	Is	Eligible	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 14
              Who	Is	Not	Eligible  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 14

           PARTICIPATION	                                                                                                                                              15

           YOUR	CONTRIBUTIONS	TO	THE	PSA	                                                                                                                              16
             Annual	Bonus		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 16
             Catch-Up	Contributions  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 1 7
             The	Before-Tax	Savings	Advantage  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 18
             Effect	of	Before-Tax	Contributions	on		
             Social	Security	and	Oxy	Benefits 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 18
             Changing	Your	Future	Contribution	Percentage	  .	  .	  .	  .	  .	  .	  .	  .	  .	 1 9
             Suspending	and	Resuming	Your	Contributions	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 1 9
             Involuntary	Contribution	Suspension 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 1 9
             Rollover	Contributions  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 1 9
             Contribution	Eligibility	for	Qualified	Military	Service 	  .	  .	  .	  .	  .	 20

           INVESTING	IN	THE	PSA	                                                                                                                 20
              Available	Investment	Funds  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 20
              Past	Fund	Performance	Information	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 2 1
              Making	Your	Personal	Investment	Choices	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 2 1
              Changing	the	Investment	of	Your	Future		
              Employee	Contributions		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 2 1
              Transferring	Your	Current	PSA	Balances 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 22
              Insider	Trading	Prohibition 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 23

           OXY’S	MATCHING	COMPANY	CONTRIBUTIONS	                                                                                                                      23




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FUND	VALUATIONS	                                                                                                                                                24

PARTICIPANT	STATEMENTS	                                                                                                                                         24

VOTING	YOUR	SHARES	                                                                                                                                             25

VESTING	                                                                                                                                            25
   Vesting	Schedules	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 26

YOUR	PSA	BENEFICIARY	DESIGNATIONS	                                                                                                                               27

RECEIVING	PSA	BENEFITS	AS	AN	ACTIVE	EMPLOYEE	                                                                                                                       28
   In-Service	Withdrawals 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 28
   PSA	Loans	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 30

RECEIVING	PSA	BENEFITS	WHEN	YOU	LEAVE	OXY	                                                                                     33
   Participant	Distribution	Payment	Options		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 33
   How	to	Request	Distribution	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 35

DEATH	BENEFITS	                                                                                 36
   Beneficiary	Distribution	Payment	Options 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 36

REQUIRED	MINIMUM	PAYMENTS	                                                                                                  38
  During	the	Participant’s	Lifetime 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 38
  After	the	Participant’s	Death 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 38

OTHER	IMPORTANT	PROVISIONS	OF	THE	PSA	                                                                                                                      39
  Employment	Changes 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 39
  Assignment	of	Benefits	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 40
  Qualified	Domestic	Relations	Orders		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 40
  Documents	Incorporated	by	Reference  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 4 1
  Plan	Continuation 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 4 1
  Pension	Benefit	Guaranty	Corporation	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 42
  Plan	Documents		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 42
  Mergers,	Consolidations,	and	Transfers 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 42
  Overpayment	 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .	 42
  Data	and	Records 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 43
  If	the	Plan	Becomes	“Top	Heavy”	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 43
  No	Implied	Promises	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 43




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CLAIMS	AND	APPEALS	PROCEDURES	                                                                                                                     43
   General	Information	About	Claims 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 43
   Time	Period	for	Responding	to	Initial	Claim 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 44
   Information	Provided	If	Initial	Claim	Is	Denied 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 45
   Appeal	Procedure	If	Initial	Claim	Is	Denied	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 45
   Information	Provided	If	Appeal	Is	Denied	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 46
   Legal	Proceedings	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 46

YOUR	RIGHTS	AS	PLAN	PARTICIPANT	                                                                                                              47
  Receive	Information	About	Your	Plan	and	Benefits 	  .	  .	  .	  .	  .	  .	 47
  Prudent	Action	by	Plan	Fiduciaries	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 48
  Enforce	Your	Rights		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 48
  Help	With	Your	Questions	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 48

ADDITIONAL	INFORMATION	                                                                                                                         49

LIST	OF	ATTACHED	APPENDICES	                                                                                                                    50

APPENDIX	A	
PERSONAL	SAVINGS	ACCOUNT	(PSA)	
MAXIMUM	CONTRIBUTION	PERCENTAGES,		
COMPANY	MATCHING	CONTRIBUTIONS	AND		
GOVERNMENT	LIMITS	                                                                                                                              51

APPENDIX	B	
PERSONAL	SAVINGS	ACCOUNT	(PSA)	
PARTICIPATING	AFFILIATES	                                                                                                                       53




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       APPENDIX	C	
       PERSONAL	SAVINGS	ACCOUNT	(PSA)		
       FUND	DESCRIPTIONS	                                                                                                                                                  54
          Stable	Value	Fund 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 54
          Bond	Fund	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 54
          Diversified	Balanced	Fund	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 55
          Convertible	Bond	Fund		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 55
          S&P	500	Index	Fund 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 56
          Large	Cap	Value	Fund	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 56
          Large	Cap	Blend	Fund	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 56
          Mid	Cap	Index	Fund	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 57
          REIT	Index	Fund  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	57
          High	Yield	Bond	Fund		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 58
          Growth	Fund		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 58
          International	Equity	Fund 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 59
          Small	Cap	Value	Fund 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 59
          Oxy	Stock	Fund 	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 59

       APPENDIX	D	
       PERSONAL	SAVINGS	ACCOUNT	(PSA)	
       NOTICE	OF	FEDERAL	AND	STATE	TAX	INFORMATION		
       FOR	PLAN	PAYMENTS		                                                                                                                                                   61
          Introduction  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	6 1
          Summary	 .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 63
          More	Information  . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 	 . 64
          How	to	Obtain	Additional	Information	 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		 .		7 1
          Notice	of	State	Tax	Information		  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	  .	 7 1




Refer to subsequent issues of Benefits News for any material changes to the Plan made
after the date of this document.




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HIGHLIGHTS

The Occidental Petroleum Corporation Savings Plan, also known as the Personal Savings Account
or PSA, is a 401(k) plan which offers you an excellent opportunity to save before or after taxes
through payroll deductions. By participating, you can invest easily and conveniently among different
investment Funds, earn Matching Company Contributions, and supplement your retirement income.

You automatically become a Plan participant (whether or not you contribute to the Plan) on the first
day of the month in which you are hired as an eligible employee or become an eligible employee.
As a participant, you may contribute a percentage of your Base Pay and up to the first $100,000
of your Annual Bonus to your PSA on a before-tax basis, and after-tax basis or a combination of
both. In addition, if you will be at least age 50 before the end of the year, you may make before-tax
catch-up contributions up to the government-specified limit for the year. The total amount that
you may contribute in any year is shown in Appendix A which constitutes a part of this summary
plan description (SPD). The Plan offers several different Funds in which you may invest your
contributions, each offering a different level of risk and potential return. A description of these Funds
is provided in Appendix C which constitutes a part of this SPD.

For every dollar you contribute to your PSA up to the first 6 percent of your Earnings, Oxy will make
a matching contribution to your PSA at the rate shown in the Company Matching Contribution Rate
Table in Appendix A. Oxy’s Matching Company Contributions always are made to the Oxy Stock
Fund, and active participants with at least three years of service and terminated vested participants
may elect to transfer their Matching Company Contributions to other investment Funds.

The term vesting refers to your nonforfeitable right to receive benefits from your PSA. Generally,
your vesting service begins on the first of the month in which you are hired by Occidental Petroleum
Corporation (OPC) or any Affiliate and continues through the last day of the month in which you
separate from service from OPC and all Affiliates. You always are fully vested in your contributions
to the PSA. If you were first hired by OPC or any Affiliate after 2006, you will become fully vested in
Oxy’s Matching Company Contributions after you have three years of service. If you were first hired
by OPC or any Affiliate before 2007, you earn vesting in Matching Company Contributions at the rate
of 20 percent for each of your first full two years of vesting service and then you are fully vested in
these contributions after you have three years of vesting service. Regardless of your years of vesting
service, you become fully vested in Oxy’s Matching Company Contributions:
       •    When you attain age 65,
       •    When you become disabled,
       •    If you die or the Plan is terminated while you are an employee of OPC or any
            Affiliate, or
       •    If you receive benefits under the Occidental Petroleum Corporation Notice
            and Severance Pay Plan or the equivalent plan or program for Represented
            Employees.




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                                                              PERSO NAL SAVI N GS ACCO U NT




Also, you are always fully vested in dividends paid after May 31, 2002 on the portion of your Matching
Contributions Account invested in the Oxy Stock Fund regardless of your vesting service.

You may request a withdrawal or loan from the Plan while you are employed. In addition, you (or your
beneficiary, in the event of your death) may request a distribution of your vested balance after you
have left OPC and all Affiliates for any reason.




   This SPD summarizes your PSA so that you can understand how the Plan works. Although
   this booklet covers many of the principal features of PSA, it is only a summary. The PSA’s
   complete provisions are contained in the Plan documents that legally govern the Plan’s
   operation. The Plan documents include the official Plan text, the trust agreement, and other
   documents and reports that are maintained by the Plan and/or filed with a federal government
   agency. If you wish, you may request a copy of any of the Plan documents by writing to the
   Plan Administrator at the address shown in the section entitled Additional Information.
   Copies of requested documents will be furnished within 30 days at a reasonable charge. All
   benefits described in this SPD are subject to the terms of the Plan documents and if there is ever a
   conflict or difference between this booklet and the Plan document, the official Plan document will
   govern.

   This SPD reflects the Plan document provisions in effect on April 1, 2007. These provisions
   may not apply to you if your participation in the PSA ended before this date.

   This SPD and all Appendices constitute part of a prospectus covering securities that have
   been registered under the Securities Act of 1933.




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                                                            PERSO NAL SAVI N GS ACCO U NT




EASY PSA ACCESS THROUGH OXYLINK
OxyLink Online Website
http://oxylink .oxy .com



OxyLink® Employee Service Center (OxyLink)
OxyLink Representatives
800-699-6903 or
918-610-1990 (International)
(from outside the U.S. or Canada)
Monday through Friday (except holidays)
8:30 a.m. to 5 p.m. (Central Time)


Your OxyLink Password
You can have a new OxyLink password sent to you by email if you forget your password. In order to set
up this feature, log on to oxylink .oxy .com, then select:
        •   “My System Profile” from the OxyLink Online Menu
        •   “Change or Set Up Forgotten Password Help” under the Password heading.
             This option lets you enter an easy-to-remember hint as a reminder if you
             forget your password and need to use the site’s Forgot Your Password option in
             the future. After you complete this step, click “OK.”
        •   “Edit Email Addresses” under the Email heading and enter your email address
            (active employees: please retain or enter your Oxy business email address),
             then click “Save.”


If you forget your password in the future, go online to the OxyLink Online website and select “Forgot
Your Password,” enter your Employee ID and click “Continue” to answer your hint question. Note:
although you may view the email address used to send you a new temporary password, you are not
permitted to change it using this option.

After your temporary password is emailed to you, log on to the OxyLink Online website and change
it to a new password of your choice. Your new password must contain a combination of at least eight
case-sensitive alpha, numeric or special character digits. Passwords will expire every 90 days.

If you have any questions, contact OxyLink by email at oxylink@oxy .com or by phone at 800-699-6903
(provide your full name and Employee ID number).




                                                   8                                                    4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




Your OxyLink Password Is the Key
To ensure the confidentiality of your benefits information and to avoid transaction-processing delays,
you must enter your Employee ID and your OxyLink password to request transactions through
oxylink .oxy .com. If you have lost or forgotten your password and are unable to use “Forgot Your
Password,” click on “Contact OxyLink for New Password” in the Contact Us menu, or call OxyLink at
800-699-6903 during normal business hours to request a new one.

Please note that for security reasons, passwords are locked after five consecutive attempts to log on
with an invalid Employee ID and/or password. Once locked, using the Forgot Your Password link will
not work. You must request a new temporary password through OxyLink.




NOTICE REGARDING TRANSACTION OVERLOAD, SYSTEMS FAILURES,
AND FUND VALUATION DELAYS

Neither OPC nor any Affiliate is responsible for the unavailability of information or the delay or
noncompletion of requested transactions due to high call volume or interruptions to computer
connections or phone services. This disclaimer also covers the failure by a Fund investment manager
to provide the PSA trustee with updated Fund values on a timely basis. If, on any Trading Day, one
or more of the Fund investment managers fails to provide the PSA trustee with Fund values by that
Trading Day’s daily valuation processing deadline, those Funds will be processed and valued using the
last available Trading Day’s closing values and all other Funds will be valued using the current Trading
Day’s closing Fund values.




PSA TRANSACTION SUMMARY

The chart on the following two pages summarizes the various PSA transactions you may be eligible to
request through OxyLink.




                                                   9                                                       4/07
                                                                  PERSO NAL SAVI N GS ACCO U NT




       Transaction          How to Do/Frequency                 Special Notes               When Processed
Initial Enrollment         Enroll online at                See Appendix A to             Processed daily; effective
                           http://oxylink.oxy.com          determine the amount that     first available pay period
                                                           you may contribute for
                                                           the current year (and your
                                                           matching rate)
Catch-Up Contributions     Online anytime                  You must be at least age      Processed daily; effective
                                                           50 by the end of the year;    first available pay period
                                                           see Appendix A for catch-
                                                           up contribution limit in
                                                           effect for the current year
Contribution
Reinstatement:
   Following Waiver or     Online anytime                  Maximum contribution          Processed daily; effective
   Voluntary Suspension                                    percentage subject to the     first available pay period
                                                           PSA Contribution Table;
                                                           see Appendix A
   Following Involuntary   Online anytime following        Maximum contribution          Processed daily; effective
   Withdrawal Suspension   minimum 6-month                 percentage subject to the     first available pay period
                           suspension period               PSA Contribution Table;
                                                           see Appendix A
Future Contribution        Online anytime                  Maximum contribution          First available pay period
Rate/Type Change                                           percentage subject to the
                                                           PSA Contribution Table;
                                                           see Appendix A
Voluntary Contribution     Online anytime                  Oxy’s matching                First available pay period
Suspension                                                 contributions also cease
Future Contribution        Online anytime                  Investment must be in 1       Processed daily; effective
Investment Change                                          percent increments            first available pay period
Fund Transfer              Online anytime                  Processed and valued at      Processed daily for each
                           • 12 free fund transfers        same Trading Day’s NYSE      Trading Day
                             per calendar year             closing trading price if
                             (including transfers          requested by 1 p.m. (Central
                             from the Oxy Stock            Time); if requested after 1
                             Fund)                         p.m. (Central Time) or on a
                           • $10 fee will be deducted      non-Trading Day, processed
                             from your account             and valued at end of next
                             balance for each fund         Trading Day
                             transfer above 12
Oxy Stock Dividend         Online anytime                  You may elect to have        Processed daily if election
Pass-Through                                               dividends on Oxy Stock       made by 1 p.m. (Central
                                                           held in your Matching        Time). Your election must
                                                           Contributions Account paid be processed before
                                                           out to you in cash. If you   the ex-dividend date for
                                                           do not make an election,     the dividend to be paid
                                                           dividends will be reinvested out to you in cash. The
                                                           with your Oxy Stock Fund     ex-dividend date is the
                                                           investment                   second business day
                                                                                        before the date of record.




                                                      10                                                              4/07
                                                                      PERSO NAL SAVI N GS ACCO U NT




      Transaction            How to Do/Frequency                     Special Notes            When Processed
 In-Service Withdrawal      Online anytime to request          Loan may not be requested Processed weekly.
 Request                    form; only one in any              in same processing period. Valued at end of Trading
 (active employees only)   6-month period                     Signed withdrawal request Day preceding check
                                                               must be received by form   issuance date.
                                                               expiration date
 Loan Application           Online anytime to request          In-service withdrawal may  Processed weekly.
 (active employees only)   form, except last 5 days of        not be requested in same   Valued at end of Trading
                            the month; only 1 loan may         processing period. Signed  Day preceding check
                            be outstanding.                    loan form must be received issuance date.
                            A $50 loan initiation fee          at OxyLink by Friday prior
                            will be deducted from              to the last week of loan
                            account balance                    request month
Loan Prepayment
   Active Employees         Online anytime                     Prepayment must             As soon as
                                                               be received by the          administratively possible
                                                               prepayment due date on
                                                               form
   Terminated Employees     Online within two months           Must be received before     As soon as
                            following termination date         distribution is processed   administratively possible
                            to request a form
   Spousal Beneficiaries    Call OxyLink                       Must be received before     As soon as
                                                               distribution is processed   administratively possible
Termination Distribution
Request
   Participant              Online anytime following           Signed distribution form    Processed weekly.
   Distributions            termination date; 1 partial        must be received by form    Valued at end of Trading
                            request allowed in any             expiration date             Day preceding check
                            6-month period                                                 issuance date.
   Spousal/Nonspousal       Call OxyLink                       Signed distribution form    Processed weekly.
   Distributions                                               must be received by form    Valued at end of Trading
                                                               expiration date             Day preceding check
                                                                                           issuance date.
Rollovers (Incoming)        Online anytime                     Signed rollover form with   Processed daily
                                                               proceeds check must be
                                                               received before request
                                                               will be processed
Beneficiary Designation     Online anytime                     If married, nonspousal      Following receipt and
Change                                                         designation requires        approval by OxyLink
                                                               notarized spousal consent
Online Statements           Online anytime                     N/A                         N/A


If you need assistance, you can always contact an OxyLink representative at the OxyLink Employee
Service Center by calling 800-699-6903 (or 918-610-1990 from outside the U.S. and Canada), Monday
through Friday (except holidays) 8:30 a.m. to 5 p.m. (Central Time).




                                                          11                                                           4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




DEFINITIONS

Before describing the provisions of the PSA, there are a few words and phrases that have special
meaning when used in this Summary Plan Description (SPD).

   Affiliate—Any business entity that is more than 80 percent owned, directly or indirectly by OPC,
            or is in an affiliated service group with OPC, as defined under the Code.

   After-Tax Employee Contributions—Employee contributions that are deducted from your pay
          after federal, state and local withholding taxes are deducted.

   Annual Bonus—The bonus paid to you during the year under a regular annual incentive
          compensation plan, such as the Company’s Variable Compensation Program or Incentive
          Compensation Program (but excluding without limitation a special individual or group
          bonus, a project bonus, and any other special bonus). Contributions related to your Annual
          Bonus to the PSA are counted in the year in which the Annual Bonus is paid even if the
          bonus relates to service provided in an earlier year.

   Base Pay—For purposes of determining your contributions and Oxy’s matching contribution, your
          Base Pay shall be determined in accordance with Oxy’s standard payroll practices based on
          how your compensation is determined. Generally, if you are compensated by salary, your
          regular base pay paid to you during the year is your Base Pay. Also, generally, if you are
          compensated based on an hourly rate, your base hourly rate multiplied by the number of
          regularly scheduled hours worked is your Base Pay.

           Base Pay includes salary or wages received during vacations, paid leaves of absence and
           periodic notice pay, but does not include single sum notice pay payments or any severance
           pay payments. Base Pay also does not include pay in excess of the federal government’s
           annual compensation limit (see Appendix A), bonuses, awards and other nonrecurring
           forms of compensation.

   Before-Tax Employee Contributions—Employee contributions that are deducted from your pay
          before federal withholding taxes and, in most cases, state and local withholding taxes are
          deducted. Before-Tax Employee Contributions are subject to applicable Social Security
          taxes. Your annual Before-Tax Employee Contributions may not exceed the annual
          before-tax contribution limit set by the federal government each year (see Appendix
          A). The annual before-tax employee contribution limit is an individual limit and applies
          to the combined amount of before-tax employee contributions you make to all qualified
          employer-sponsored plans during a calendar year.

   Code—The Internal Revenue Code of 1986, as amended.




                                                  12                                                   4/07
                                                      PERSO NAL SAVI N GS ACCO U NT




Earnings—The sum of your Base Pay and the first $100,000 of your Annual Bonus paid in the
       current year.

ERISA—The Employee Retirement Income Security Act of 1974, as amended.

ESOP Dividend Account—The recordkeeping account which evidences the value of the eligible
     dividends including related investment gains and losses.

Fund—The different funds in which you may invest your contributions, as designated by the
     Investment Committee from time to time. The current funds are listed in Appendix C.

Matching Company Contributions—The amount Oxy contributes to your PSA that matches
      your before-tax and/or after-tax contributions. See Appendix A for the matching
      contribution rate that applies to you.

OPC—Occidental Petroleum Corporation, a Delaware corporation.

Oxy—Occidental Petroleum Corporation and all participating Affiliates.

Oxy Stock—The Common Stock, $0.20 par value, of Occidental Petroleum Corporation.

Plan—Occidental Petroleum Corporation Savings Plan, also known as the Personal Savings
     Account (PSA).

PRA—Personal Retirement Account, also known as the Occidental Petroleum Corporation
    Retirement Plan.

PSA—Personal Savings Account, also known as the Occidental Petroleum Corporation Savings
     Plan.

Rollover Contributions—Taxable contributions rolled into your PSA from another employer’s
       qualified plan.

Trading Day—Any business day that the New York Stock Exchange is open for trading.




                                            13                                              4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




ELIGIBILITY

Who Is Eligible
Generally, you are eligible to participate in the PSA if you are an Oxy employee, as described here. An
employee is any person employed by OPC or any Affiliate, whether or not it is an Affiliate participating
in the PSA. You are an Oxy employee if you are employed by OPC or any Affiliate designated by the
OPC Board of Directors or its delegate as a participating employer under the Plan. The Affiliates who
are participating employers under the Plan are listed in Appendix B. Together, OPC and participating
Affiliates under the Plan are referred to as Oxy.


Who Is Not Eligible
You are not eligible to participate in the PSA if:
       •    Your employment with Oxy is covered by a collective bargaining agreement,
            unless such agreement expressly provides for your participation in the PSA;
            represented employees whose collective bargaining agreement provides
            for their participation in the PSA are shown in the Company Matching
            Contribution Rate Table in Appendix A;
       •    You are employed by an Affiliate that is not a participating employer under
            PSA (i.e., the Affiliate does not come within the defined term “Oxy” described
            above); or
       •    You are a nonresident alien Employee who receives no U.S.-source earned
            income from Oxy, unless the PSA has been expressly made applicable to you
            (in which case, this has previously been communicated to you).


No individual is eligible to participate in the PSA if such individual is not classified as a common-law
employee in Oxy’s employment records, without regard to whether the individual is subsequently
determined to have been a common-law employee of Oxy. The exclusion of the individual from
eligibility to participate in the PSA shall apply even if a determination is subsequently made by the
Internal Revenue Service, another governmental agency, a court or other tribunal, after the individual
is engaged to perform such services, that the individual is an employee for purposes of pertinent
provisions of the Internal Revenue Code of 1986, as amended (Code), or for any other purpose. The
determination that the individual is an employee shall apply prospectively only.




                                                     14                                                    4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




PARTICIPATION
You automatically become a participant on the first day of the month in which you are hired as an
eligible Oxy employee or on the first day of the month in which you become an Oxy employee. PSA
enrollment materials and instructions will be mailed to you by OxyLink within a few days after you
become eligible to contribute. If you decide to make contributions, you will make your contribution
and investment elections at OxyLink Online. OxyLink representatives are available if you need
assistance. You will be asked to:
       •   Authorize Oxy to deduct your elected contribution percentage from your
           Earnings on a before-tax and/or after-tax basis, and
       •    Make your employee contribution Fund investment choices (in 1-percent
            increments), and
       •   Name your beneficiary to receive your vested benefits in the event you die
           while you are a participant.


A written confirmation of your enrollment elections will be mailed to you. PSA contributions will start
being deducted from your pay in the first available payroll period following your enrollment. Until you
enroll, you are waiving your right to contribute and receive matching company contributions to the
PSA. You may cancel your waiver at a later date and elect to begin making contributions to the PSA by
enrolling online.

The PSA Beneficiary Designation form available to you online should be printed, completed, signed
(with notarized spousal consent, if applicable) and mailed back to OxyLink at the address shown on the
form. See the section entitled Your PSA Beneficiary Designations for more information concerning
beneficiary designations under the PSA.




                                                  15                                                      4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




YOUR CONTRIBUTIONS TO THE PSA

You may contribute to the PSA on a before-tax basis, an after-tax basis or a combination of both in
one-tenth increments, subject to the 1 percent minimum contribution percentage. Your combined
before-tax and after-tax contribution percentage may not exceed your maximum contribution
percentage shown on the PSA Contribution Table for the year in which deductions are taken. The
current PSA Contribution Table is contained in Appendix A. The PSA Contribution Table for each
year is published and distributed to eligible employees each December and is incorporated into this
SPD by reference. You may also obtain a copy of the table for the current year at OxyLink Online or by
speaking with an OxyLink representative.

The table shows the maximum amount you may contribute based on your age, Base Pay, and the
amount of Oxy’s contributions to your PRA. If your elected combined before-tax and after-tax
contributions percentage exceeds the maximum contribution amount shown for your category in
the table, your contributions will automatically be reduced to the allowable maximum (in whole
percentage increments). First, your after-tax contributions will be reduced or eliminated, if necessary;
then, if an additional reduction is necessary, your before-tax contributions will be reduced.

You are not eligible to subsequently make retroactive employee contributions for any period during
which you waived participation, during any period in which your elected contribution percentage was
less than your maximum contribution category on the PSA Contribution Table, or during any period in
which your contributions were voluntarily or involuntarily suspended.

Your contributions are deducted from your Base Pay each pay period, deposited with the Plan trustee
under a tax-exempt trust established for the PSA, and credited to the Plan into the account set up in
your name no later than 15 days after your pay date.


Annual Bonus
The percentage that you elect to contribute to the PSA, both before-tax and after-tax, will
automatically apply to the first $100,000 of your Annual Bonus, except that the maximum contribution
percentage for bonuses is capped at 6 percent. Your contributions are deducted from your Annual
Bonus in the pay period when the bonus would be paid, deposited with the Plan trustee under the tax-
exempt trust established for the PSA, and credited to the Plan into the account set up in your name no
later than 15 days following the month of deduction.




                                                   16                                                      4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




Catch-Up Contributions
If you will be at least age 50 or older on or before December 31st, you are eligible to make additional
before-tax catch-up contributions to the PSA during the year up to an annual maximum as specified in
the Government Limits Table in Appendix A. If you are eligible to make catch-up contributions, these
contributions may be made in addition to the PSA Contribution Table limits described above. Catch-
up contributions are deposited with the Plan trustee at the same time and in the same manner as your
regular before-tax contributions.

If you made PSA catch-up contributions in a prior year, the same amount you contributed as catch-up
contributions each pay period during that year will continue to be deducted in the following year
unless you elect to increase, change or stop your catch-up contributions.


How Do I Elect to Make Catch-up Contributions?
If you are eligible to make catch-up contributions, you may elect to make contributions through
OxyLink Online. To do so, determine the amount of before-tax catch-up contributions that you want
to make to your PSA for each remaining pay period in the calendar year (up to the specified maximum
in the Government Limits Table in Appendix A). This is the dollar amount that you will specify for
catch-up contributions when you make your election at OxyLink Online.

You may start, stop or change the amount of catch-up contributions deducted each pay period for the
remainder of the year at any time. Your new election will take effect in the next available pay period.


Should I Consider Making Catch-Up Contributions?
You should consider making catch-up contributions if you intend to contribute regular PSA before-tax
contributions of at least the government’s limit for regular before-tax contributions in effect for the
year, as shown in the Government Limits Table in Appendix A. The regular before-tax contributions
limit applies to all regular before-tax contributions that an individual may make to all employer-
sponsored 401(k) plans like the PSA. If you intend to contribute less than this amount, catch-up
contributions you make will be classified as regular PSA before-tax contributions up to the government
limit. For example, if your regular PSA before-tax contributions in 2007 are $10,500 and you also make
$5,000 in additional catch-up contributions, your catch-up contributions will be considered under the
$15,500 limit, and your total 2007 regular before-tax contributions will be $15,500.

To assure that you maximize Oxy’s Matching Contributions, you should not make catch-up
contributions unless you are also contributing at least 6 percent of your Earnings in regular
contributions to the PSA. This is because Oxy makes matching contributions on your regular before-
tax and/or after-tax contributions to the PSA up to 6 percent of Earnings that you receive each pay
period. Catch-up contributions are not matched regardless of your regular PSA contribution percentage.
Retroactive catch-up contributions are not permitted.




                                                   17                                                     4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




The Before-Tax Savings Advantage
When you choose to contribute to the PSA on a before-tax basis rather than an after-tax basis, you
are directing Oxy to contribute a percentage of your Earnings before it is taxed. While your income
remains the same, the amount that is subject to immediate taxation is reduced by the amount of your
before-tax contributions to the Plan. Lower taxable income means that you decrease your federal
income taxes for the year in which your before-tax contributions are made. You will not pay federal or
state (if applicable) income tax on your before-tax contributions until you take them out of the Plan.

The advantages of before-tax savings provide a valuable incentive to save in the PSA and work toward
your long-term financial goals. Keep in mind, however, that while you remain actively employed at OPC
or any Affiliate, your before-tax savings are not available for withdrawal before age 59½, as are your
after-tax savings.

Unless you are eligible and elect to make catch-up contributions (as discussed above), your annual
before-tax contributions may not exceed the regular before-tax contribution limit for the year as shown
in the Government Limits Table in Appendix A. When your year-to-date before-tax contributions
equal the annual government limit, your contributions for the remainder of the year will automatically
be deducted from your Earnings on an after-tax basis.

The government’s annual, regular before-tax contribution limit is an individual limit. Your combined
before-tax contributions to all employer-sponsored benefit plans (cash or deferred arrangements)
may not exceed the annual limit in any tax year, and it is your responsibility not to exceed it. If you
have exceeded the limit, you must notify the administrator of one or more of the plans (by March 1
following the close of the taxable year in which you exceeded the limit) of the amount by which your
before-tax contribution exceeded that limit. By April 15 in the same year, the administrator(s) of the
plan(s) you notified must distribute to you the excess before-tax contributions and any investment
income attributable to those contributions. The amount of your excess before-tax contributions will
be included in your gross income for the year in which the limit was exceeded. Any investment income
on the excess before-tax contributions that is refunded to you will be treated as earned and received in
the tax year in which the payment is made to you.


Effect of Before-Tax Contributions on Social Security and Oxy Benefits
PSA before-tax contributions will not reduce the amount of your Earnings that are reported for Social
Security purposes.

In some states, certain other statutory benefits for which you may become eligible (such as
unemployment insurance, workers’ compensation and state disability insurance) are based on taxable
Base Pay or, in some cases, Earnings. Therefore, any benefit payments from these sources could be
slightly reduced.

Your pay for purposes of determining pay-related Oxy benefits, such as Oxy’s retirement, pretax
spending program, disability and life insurance plans, will continue to be based on your Base Pay before
PSA before-tax contributions, including catch-up contributions, if any, are deducted.



                                                  18                                                       4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




Changing Your Future Contribution Percentage
Generally, you may change the amount of your contribution percentage in the first available payroll
period following your election. You may also change your election to make your contributions on a
before-tax and/or after-tax basis. You may request a change at OxyLink Online. A written confirmation
of your election will be mailed to you within a few days.


Suspending and Resuming Your Contributions
Generally, you may stop or resume making contributions in the first available pay period following your
election. If you suspend your contributions, the suspension will continue indefinitely until you request
that your contributions be resumed at OxyLink Online. A written confirmation of your election will be
mailed to you within a few days.


Involuntary Contribution Suspension
In some cases, your contributions may be suspended involuntarily. For example, your contributions
will generally be suspended involuntarily for 6 months if you withdraw all or part of your Matching
Company Contributions Account before age 59½, as described in the section entitled In-Service
Withdrawals. You may resume your contributions any time after the 6-month suspension at OxyLink
Online.


Rollover Contributions
If you are an active employee who is eligible to participate in the PSA, you may be able to roll over into
your PSA all or part of the taxable money you receive in an eligible rollover distribution from another
employer’s tax-qualified retirement plan. If you rolled over your money from that plan to an individual
retirement arrangement (IRA) before you participated in the PSA and you made no other contributions
to that IRA, you may be able to roll over the taxable value of that rollover IRA to your PSA.

Your rollover contribution must be received by the Plan Administrator within 60 days after you receive
payment from your former employer’s plan or from the IRA. If the qualified status of your rollover
contribution cannot be determined, the Plan Administrator may require you to provide satisfactory
evidence that the rollover is from a qualified plan or from an IRA that qualifies as a rollover (conduit)
IRA. The rollover contribution will not be accepted until the Plan Administrator receives such proof.
Upon acceptance, your rollover contribution will be deposited with the Plan trustee, credited to a
Rollover Contributions Account under your PSA, and will be invested among the PSA Funds based
on your rollover contribution investment election (in 1-percent increments only). If no rollover
contribution investment election is received, the rollover contribution will automatically be invested in
the Stable Value Fund. You may obtain a rollover contribution application at OxyLink Online.




                                                   19                                                        4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




Contribution Eligibility for Qualified Military Service
If you serve in the uniformed services (as described in Chapter 43 of Title 38 of the United States
Code) and are entitled to reemployment rights under that chapter with respect to such service,
then you will be eligible to make additional before-tax or after-tax contributions to your PSA (up
to the amount you would have been permitted to contribute to the Plan during your period of
military service). If you make such contributions, Oxy will make the associated Matching Company
Contributions in the same amount that would have been matched on your contributions during your
period of military service. Fund earnings on such contributions will begin accruing on the date the
contributions are credited to your PSA.

The period over which you may make the before-tax or after-tax contributions described above begins
on your Oxy reemployment date and continues for the lesser of (i) five years, or (ii) the product of
three multiplied by your period of qualified military service that resulted in your reemployment rights.
For example, if you had 6 months of qualified military service, you would have a period of 18 months
(6 months x 3 = 18 months) from your Oxy reemployment date to make the before-tax or after-tax
contributions that you would have been eligible to make during your period of qualified military
service, which is less than the maximum 5-year period. If you qualify to make such contributions and
wish to do so, contact an OxyLink representative.




INVESTING IN THE PSA

Available Investment Funds
Subject to the restrictions noted here, in Appendix C or as may imposed by the individual investment
Fund, you may invest your contributions (in multiples of 1 percent) among the investment Funds
described in the Fund Descriptions contained in Appendix C. You may make this election at OxyLink
Online. Individual descriptions of each current PSA investment Fund are also contained in the
publication entitled PSA Fund Descriptions which is distributed to all PSA participants annually and
which is available at OxyLink Online. This document is updated when necessary and annually. You may
also request a printed copy by sending an e-mail request to oxylink@oxy .com or requesting a copy from
an OxyLink representative. The PSA Fund Descriptions document, by this reference, constitutes part of
the PSA prospectus covering securities that have been registered under the Securities Act of 1933.

Trustee fees and investment management fees under each Fund are netted out of that Fund’s earnings.
Any 12b-1 fees that are rebated to the PSA trust by any of the investment managers that are mutual
funds will be used to help pay for administrative Plan expenses.




                                                  20                                                       4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




Past Fund Performance Information
Annualized past Fund performance information and the annualized market value of $100 invested each
month in each of the investment Funds over the past 1-, 3- and 5-year periods ending December 31 are
contained in a separate publication entitled PRA/PSA Fund Performance—A Comparison of Your Investment
Options in the PRA and PSA. This publication is distributed to all PSA participants annually and, by
reference, constitutes part of the PSA prospectus covering securities that have been registered under
the Securities Act of 1933. You may view this publication at OxyLink Online or you may also receive
a printed copy by sending an e-mail request to oxylink@oxy .com. You may also request a printed copy
from an OxyLink representative.

You may also view current and historical PSA Fund rates of return by accessing your Plan balances at
oxylink .oxy .com.


Making Your Personal Investment Choices
It is up to you to decide how to invest your PSA account balances. All investments involve the risk of
loss as well as the possibility of gain. Please remember that historical performance does not necessarily
indicate the future performance of any PSA investment Fund. Performance depends on a number of
variables, including the future performance of Oxy Stock, the performance of other companies in which
investments are made and the actual time frame of the investment.

Oxy does not guarantee the performance of your PSA investment Funds nor does it assume any
obligation to make up for any losses that you may experience. You may want to consult with an
independent financial advisor regarding the PSA investment options that are best suited to help you to
achieve your personal investment goals.


Changing the Investment of Your Future Employee Contributions
You may change your Fund investment election for future employee contributions at any time at
OxyLink Online. Your election must be in 1-percent increments and total 100 percent. Between
January 1, 2007 and March 30, 2007, you could not invest contributions to your Before-Tax Employee
Contributions Account (including, if applicable, Catch-Up Contributions), your After-Tax Employee
Contributions Account, and your Rollover Contributions Account in the Oxy Stock Fund. Beginning
March 31, 2007, you may invest up to 55 percent of your future contributions to these accounts in the
Oxy Stock Fund.

Your new election will take effect in the first available pay period after making the change at OxyLink
Online. A written confirmation of your election will be mailed to you within a few days. Elections are
processed daily and are effective as of the first available pay period.

If no future investment election is on file, your future contributions will automatically be invested
under the Stable Value Fund.




                                                   21                                                     4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




Transferring Your Current PSA Balances
You may transfer the following accounts among the PSA’s investment Funds on any Trading Day at
OxyLink Online, subject to the restrictions described below:
       •   Your Before-Tax Employee Contributions Account (including, if applicable,
           Catch-Up Contributions),
       •   Your After-Tax Employee Contributions Account,
       •   Your Rollover Contributions Account, and
       •   If you have three years of service, your Matching Company Contributions
           Account.


Subject to the restrictions in Appendix C or as may be imposed by the individual investment Fund, the
following additional requirements apply to Fund transfers:
       •   You may not transfer account balances into and out of the same investment
           Fund.
       •   If you elect to transfer less than all of your account balances in any Fund, the
           amount transferred will be taken proportionately from each eligible account
           balance you have invested in that Fund.
       •   The amount transferred from each eligible account within each Fund will be
           transferred to the same account in the new Fund or Funds that you select for
           investment.
       •   Your Fund transfer investment elections must be in 1-percent increments and
           total 100 percent.
       •   For the period between January 1, 2007 and March 30, 2007, you may not
           transfer amounts to the Oxy Stock Fund.
       •   For the period between March 31, 2007 and May 31, 2007:
           ¬   On any Trading Day, you may transfer up to 55 percent of the amounts
               invested in other investment Funds in your Before-Tax Employee
               Contributions Account (including, if applicable, Catch-Up Contributions),
               After-Tax Employee Contributions Account, and your Rollover Account,
               taken together, into the Oxy Stock Fund, and
           ¬   On any Trading Day, you may transfer up to 55 percent of the amounts
               invested in other investments Funds in your Matching Company
               Contributions Account into the Oxy Stock Fund.
       •   Beginning June 1, 2007, transfers into the Oxy Stock Fund will be limited to 55
           percent of your total PSA account balance.




                                                  22                                                    4/07
                                                             PERSO NAL SAVI N GS ACCO U NT




If you request a Fund transfer by 1 p.m. (Central Time), your transfer will be processed and valued at
that same day’s closing trading prices. If you request a Fund transfer after 1 p.m. (Central Time) or on
a non-Trading Day, your transfer will be processed and valued at the end of the next available Trading
Day. A written confirmation of your election will be mailed to you after it is processed.

Fund Transfer Fee: In any calendar year, you may make up to 12 Fund transfer requests free of charge.
Each election to transfer amounts from the Oxy Stock Fund to another Fund counts as a Fund transfer.
For each additional Fund transfer you request above 12 in any calendar year, a $10 Fund transfer fee
will be deducted from your PSA and will be used to pay for administrative Plan expenses.


Insider Trading Prohibition
OPC’s Code of Business Conduct and U.S. securities law prohibit an employee from purchasing or
selling Oxy Stock or other securities for personal profit based on information not available to the public
but known to an employee because of his or her employment with OPC or any subsidiaries or entities
controlled by it. Always remember to keep this policy in mind when making your investment decisions.
(For detailed information, refer to Corporate Policy No. 21:50.01, Federal Securities Laws.)




OXY’S MATCHING COMPANY CONTRIBUTIONS

For each $1 you contribute on a before-tax and/or after-tax basis, up to 6 percent of your Base Pay
and the first $100,000 of your Annual Bonus, Oxy will make a matching contribution to your PSA. To
determine the matching rate that applies to you, see the Company Matching Contribution Rate Table
in Appendix A.

For example, assume you are a salaried employee with monthly Base Pay of $4,000. If you elect to
contribute 8 percent, your monthly contribution would be $320 on your Base Pay. Oxy’s matching
contribution will be 100 percent of the first 6 percent of your Base Pay, or $240. In addition, if your
Annual Bonus is $10,000, you will contribute $600 of your bonus to the PSA when it is paid (generally
in February), because the deferral percentage on your Annual Bonus is capped at 6 percent. You will
also receive an additional Oxy matching contribution allocation to your PSA of $600.

All Matching Company Contributions are invested in the Oxy Stock Fund regardless of your employee
contribution investment choices. Active participants with at least three years of service and terminated
vested participants may elect to transfer their Matching Company Contributions to other investment
Funds. Your Matching Company Contributions are deposited with the PSA Trustee under the tax-
exempt trust established for the PSA and credited to the Plan into the account set up in your name no
later than 15 days after your pay date.




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                                                            PERSO NAL SAVI N GS ACCO U NT




FUND VALUATIONS
All PSA Funds are valued each Trading Day under the unit value accounting method. A unit is a
standard measurement of a portion of a Fund. Each unit has a dollar value that is calculated by dividing
the total market value of each PSA Fund by the total number of units held under that Fund. A new
per-unit value is calculated at the end of every Trading Day. All Fund balances are expressed at their
market value at the end of the last Trading Day. The market value of each participant account within
each Fund is determined by multiplying the number of units in each participant’s account within each
such Fund by the per-unit value.

A Fund’s per-unit value changes each Trading Day with gains and losses in the value of a Fund’s
underlying investments. You purchase additional units under a Fund when money is added to the Fund
through contributions, loan payments, and amounts transferred from the other investment Funds. If
you have a balance under the Oxy Stock Fund on the “ex-dividend” date, additional units are also
purchased and credited to your Oxy Stock Fund balance on that date. You sell units under a Fund when
you request a payment or transfer money to another investment Fund.

To provide liquidity for Fund transfers and payments, approximately 1–3 percent of the value of the
Oxy Stock Fund is invested in short-term cash investments and the remainder is invested in shares of
Oxy Stock.

Cash payments for loans, in-service withdrawals and distributions from each Fund are valued through
the Trading Day preceding the check issuance date. For in-kind payments from the Oxy Stock Fund,
the number of shares issued is determined by dividing the market value of the participant’s Oxy Stock
Fund balance by the closing market value for Oxy Stock on the Trading Day preceding the date the
payment is processed.

If on any Trading Day one or more of the Fund investment managers fails to provide the PSA trustee
with Fund values by that Trading Day’s daily valuation processing deadline, those Funds will be
processed and valued using the last available Trading Day’s closing values, and all other Funds will be
valued using the current Trading Day’s closing Fund values.




PARTICIPANT STATEMENTS

You will receive a quarterly statement showing the value of your PSA Fund balances as of March 31,
June 30, September 30 and December 31. Statements are issued 30 to 45 days following the end of
each statement period. On demand statements are also available at OxyLink Online.




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                                                              PERSO NAL SAVI N GS ACCO U NT




VOTING YOUR SHARES
Your balance under the Oxy Stock Fund makes you a part-owner of OPC. As a stockholder under the
PSA, you are entitled to full voting rights for your pro rata portion of shares held by your investment
in the Oxy Stock Fund. Prior to any meeting of OPC’s stockholders, the trustee will provide you with
the information provided to stockholders and a form to instruct the trustee how to vote. If the trustee
does not receive your instructions, the trustee will vote the pro rata portion of your shares held under
the PSA trust in accordance with instructions from the PSA’s Administrative Committee. Your voting
instructions are held in confidence and may not be divulged to OPC or any Affiliate.




VESTING
Vesting refers to your nonforfeitable right to receive benefits from the PSA. Your vesting service begins
on the first day of the month in which you are hired by OPC or any Affiliate, whether or not it is an
Affiliate participating in the PSA, and ends on the last day of the month in which you separate from
service from OPC and all Affiliates. You always are fully vested in your before-tax, after-tax and rollover
contributions accounts. You are also always fully vested in dividends paid after May 31, 2002 on the
portion of your Matching Contributions Account invested in the Oxy Stock Fund.

You will be fully vested in Oxy’s Matching Company Contributions on the earliest occurrence of one of
the following events:
       •    You earn three years of vesting service;
       •    You attain age 65 while you are an active employee;
       •    You receive benefits under Oxy’s Long-Term Disability (LTD) Plan for more
            than 18 consecutive months;
       •    You qualify to receive disability benefits from the Social Security Administration
            for a disability that commenced while you were an active employee;
       •    You receive benefits under the Occidental Petroleum Corporation Notice
            and Severance Pay Plan or the equivalent plan or program for Represented
            Employees;
       •    You die while you are an active employee; or
       •    The Plan is terminated.




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                                                               PERSO NAL SAVI N GS ACCO U NT




Vesting Schedules
You vest in Matching Company Contributions according to the following schedules:

If you were first hired by OPC or any Affiliate before 2007:


    Years of Vesting Service                             Vesting Percentage

       Less than 1 year                                           0

       1 year but less than 2 years                              20

       2 years but less than 3 years                             40

       3 years or more                                          100



If you were first hired by OPC or any Affiliate after 2006:


    Years of Vesting Service                             Vesting Percentage

       Less than 3 years                                          0

       3 years or more                                          100


You earn one year of vesting service credit for each full year of service with OPC or any Affiliate,
whether or not it is an Affiliate participating in the PSA. For vesting purposes, a year of vesting service
generally is the 12-month period beginning on the first day of the month in which you are hired and
each 12-month period thereafter, minus separations from service greater than 12 months.

If you are rehired on or before the first anniversary of your separation-from-service date, your service
will be considered continuous for vesting purposes.

If you terminate employment with OPC and all Affiliates before you are fully vested, you will forfeit
the nonvested portion of your Matching Company Contribution Account.




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                                                                  PERSO NAL SAVI N GS ACCO U NT




YOUR PSA BENEFICIARY DESIGNATIONS

Under the PSA, you may designate two types of beneficiaries:


              Primary An individual or trust you name to receive your vested PSA in the event of your
           Beneficiary death.

           Contingent An individual or trust you name to receive your vested PSA in the event of your
           Beneficiary death if all of your designated primary beneficiaries die before you.



If you are unmarried or if you are married and age 35 or older, you may designate anyone as your
primary or contingent beneficiary(ies). However, if you are married and you do not designate your
spouse as your sole primary beneficiary, you must obtain your spouse’s notarized written consent.

If you are married and under age 35, your sole primary beneficiary must be your spouse.

If you die and are married on your date of death, your vested PSA balance will automatically be paid
to your spouse unless he or she has provided notarized written consent to pay all or a portion of your
vested balance to the other primary beneficiary(ies) you designate. If you are unmarried when you
make your beneficiary designation, and you subsequently marry and do not submit a new designation,
the spouse to whom you are married on your date of death will automatically receive your vested PSA
balance, unless he or she has provided his or her notarized written consent to pay all or a portion of
your vested balance to the other primary beneficiary(ies) you designate.

If any of your designated primary beneficiaries die before you and you do not change your designation,
the percentage a deceased primary beneficiary would have received will be divided equally among
your surviving primary beneficiaries in the event of your death. If all of your designated primary
beneficiaries die before you and you do not change your designation, your vested PSA will be paid
to your designated contingent beneficiaries in the event of your death. In this case, if any of your
designated contingent beneficiaries die before you and you do not change your designation, the
percentage a deceased contingent beneficiary would have received will be divided equally among your
surviving contingent beneficiaries.

If you do not designate a beneficiary or all of your designated primary and contingent beneficiaries die
before you, payment will be made in the following order in the event of your death:
       •     Your surviving spouse
       •     Your surviving children (equally)
       •     Your surviving parents (equally)
       •     Your surviving brothers and sisters (equally)
       •     Your estate




                                                       27                                                  4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




To designate your beneficiary or change a previous designation, complete a PSA Beneficiary
Designation form and mail it to OxyLink at the address shown on the form. On acceptance, your
designation will cancel all previous designations. Your PSA beneficiary designation will not affect your
designation under any other Oxy benefit plan. The Plan Administrator reserves the right to require you
or your beneficiary(ies) to provide satisfactory evidence of marital status or age.

You should consider submitting a new beneficiary designation if: (1) your marital status changes;
(2) any of your previously designated primary or contingent beneficiaries die before you; or (3) you
acquire or lose dependents. Also consider the tax consequences to your survivors and/or your estate if
you designate a trust. To determine these tax consequences, it is recommended that you consult with
a qualified tax advisor or estate planner.

You may request a PSA Beneficiary Designation form at OxyLink Online or by contacting an OxyLink
representative.




RECEIVING PSA BENEFITS AS AN ACTIVE EMPLOYEE

You may take an in-service withdrawal or request a loan while you are an employee of OPC or any
Affiliate, subject to the provisions described below.


In-Service Withdrawals
As an active employee, you may receive one in-service withdrawal during any 6-month period. For
example, if you receive an in-service withdrawal that is processed on January 15, you may request
another withdrawal on or after July 15.

You may not request a withdrawal and a loan within the same weekly processing period.

The amount you may withdraw depends on your age, your vesting percentage and the value of your
PSA on the Trading Day preceding the date your withdrawal request is processed.




                                                  28                                                       4/07
                                                                   PERSO NAL SAVI N GS ACCO U NT




The following withdrawal options are available under the PSA:

      Option A Your remaining nontaxable after-tax employee contributions that you made to the
               Plan before January 1, 1987. This option is payable only in the form of cash. Amounts
               withdrawn under this option do not create a taxable event.
      Option B If you are under age 59 1⁄2, all or a portion of your After-Tax Employee Contributions
               Account, then your Rollover Contributions Account. If you are age 59 1⁄2 or older, this
               option then will include all or a portion of your Before-Tax Employee Contributions
               Account. This option will create a taxable event.
      Option C You may request this option if you are 100 percent vested. This option will create a
               taxable event and will pay all or part of your Matching Company Contributions and
               ESOP Dividend Account in addition to your After-Tax Employee Contributions Account,
               your Rollover Contributions Account and, if you are age 59 1⁄2 or older, your Before-Tax
               Employee Contributions Account. Unless you take a total withdrawal after attaining
               age 59 1⁄2, you will be involuntarily suspended from making contributions to your PSA
               for a period of six months if you withdraw any portion of your Matching Company
               Contributions and ESOP Dividend Account.


The order in which your accounts are depleted to pay your withdrawal is preset as follows: After-
Tax Employee Contributions Account, Rollover Contributions Account, Before-Tax Employee
Contributions Account (if you are age 59½ or older), then Matching Company Contributions and
ESOP Dividend Account (if you are 100 percent vested).

If less than the entire balance of any account is needed to fulfill your withdrawal request, your Fund
balances within the account will be depleted on a pro rata basis among all Funds.

The balances you withdraw from your PSA will be valued as described in the section entitled Fund
Valuations as of the Trading Day immediately preceding the check issuance date. If you request an
Option B or Option C withdrawal, the amount withdrawn from the Oxy Stock Fund is paid in shares of
Oxy Stock unless you elect to receive cash. Amounts withdrawn from the other investment Funds are
paid in cash.

For information about the tax consequences of an in-service withdrawal, please refer to the Notice
of Federal and State Tax Information for Plan Payments, which is attached as Appendix D and also
available at OxyLink Online.

You may request an in-service withdrawal form any time at OxyLink Online. Withdrawal requests are
processed weekly. Your completed and signed withdrawal request will be included for processing in
the weekly cycle in which it is received and approved by the Plan Administrator if it is received on or
before the form expiration date. Generally, your withdrawal proceeds will be mailed to you 2-3 business
days following the day your withdrawal is valued.




                                                       29                                                 4/07
                                                                PERSO NAL SAVI N GS ACCO U NT




PSA Loans
The PSA allows employees to borrow money from their vested balance and repay it through convenient
payroll deductions.


Eligibility
To apply for a loan from your PSA, you must:
       •      Be an active employee of OPC or any Affiliate, and
       •      Have a minimum vested PSA balance of $2,000.


You may have one loan outstanding at a time. After you repay a loan, you may apply for another loan as
soon as the full repayment of your previous loan has been processed and updated. You may not request
a loan and an in-service withdrawal in the same weekly processing period.


Loan Amount
The maximum PSA loan amount is the lesser of:
       •      $50,000 (reduced by your highest PSA principal loan balance during the past 12
              months), or
       •      50 percent of your vested PSA balance.


Within these limits, the following restrictions also apply:
       •      Your monthly loan payment may not exceed 25 percent of your monthly base pay.
       •      The minimum loan amount is $1,000, and the principal loan amount must be in
              $100 increments.
       •      Your maximum loan amount is calculated based on the market value of your vested
              PSA on the Trading Day before the day you model and print your loan request form.


Loan Type and Term


            General You may request a general purpose loan for any reason from a minimum period of
       Purpose Loan one year to a maximum period of five years (in full year increments only).

            Primary If the entire loan proceeds are used to acquire, construct, reconstruct or
     Residence Loan substantially rehabilitate your current or intended primary residence, you may
                    request a primary residence loan from a minimum period of six years to a
                    maximum period of ten years (in full year increments only).




                                                     30                                                  4/07
                                                            PERSO NAL SAVI N GS ACCO U NT




Loan Initiation Fee
A $50 loan initiation fee will automatically be deducted proportionately from your remaining PSA
fund balances when your loan request is processed. This nonrefundable fee will be used to pay
administrative Plan expenses.


Funds for Loans
Your loan proceeds check will be valued as described in the section entitled Fund Valuations as of the
Trading Day immediately preceding the check issuance date. Your PSA accounts will be liquidated
automatically in the following order: first, your Before-Tax Employee Contributions Account, then
your Rollover Contributions Account, then your After-Tax Employee Contributions Account, then
your vested Matching Company Contributions and ESOP Dividend Account. If less than an entire
employee account balance is needed to fulfill your loan request, your account Fund balances will be
depleted on a pro rata basis among all Funds.


Repayment Terms
Your loan term begins on the first day of the second month following the end of the month in which
your loan is requested. The interest rate you pay will be tied to the Western Federal Credit Union’s
loan rate for a loan secured by a member’s deposit account. The rate in effect when your loan is
approved will remain the same for your entire loan term. The principal and interest portion of your
loan-payment payroll deductions is computed on a monthly pay-back basis and credited to your PSA.
Loan-payment payroll deductions are irrevocable and are deducted from your after-tax pay. Payroll
deductions will begin in the first pay period of the second month following the end of the month in
which your loan is requested. Depending on your pay frequency, the following number of deductions
will be taken during each year of your loan term:


     Pay Frequency                                  Number of Deductions

       Weekly                                                48

       Semimonthly/biweekly                                   24

       Monthly                                                12


Generally, the amount of your loan payments will remain the same throughout your entire loan term
unless your pay frequency changes or your loan must be re-amortized because of missed payments.

Loan repayments first are credited to your outstanding loan balance in your Matching Company
Contributions and ESOP Dividend Account. Depending on which employee accounts were borrowed,
the remainder of your payments will be credited to your employee accounts in the following account
repayment order: your After-Tax Employee Contributions Account, your Rollover Contributions
Account, then your Before-Tax Employee Contributions Account. The payments to your employee
accounts are credited to your PSA Fund balances based on your current Fund investment election for




                                                  31                                                     4/07
                                                            PERSO NAL SAVI N GS ACCO U NT



employee contributions. If no election is on file, payments are credited to your employee accounts
under the Stable Value Fund. Your loan repayments are invested in your PSA and valued as described in
the section entitled Fund Valuations.

If you are an active employee of OPC or any Affiliate, you may prepay the entire principal balance of
your loan at any time. The amount of your prepayment will be the outstanding principal loan balance
as of the end of the month in which your prepayment is received and processed. If you wish to prepay
your loan, you may request a prepayment statement at OxyLink Online or by contacting an OxyLink
representative. To be accepted, your prepayment must be made pursuant to the instructions outlined
in your prepayment statement. Otherwise, your loan will remain outstanding.


Loan Delinquency
Under current law, you owe no taxes on the amount you borrow as long as you repay your loan in
accordance with the Plan’s Loan Rules, which are incorporated by reference into the Plan and into this
SPD. If you do not repay your loan pursuant to its terms, or if you declare bankruptcy while you are an
active employee of OPC or any Affiliate, your outstanding loan will be subject to the provisions of the
Plan’s Loan Rules. The Administrative Committee reserves the right to amend the Loan Rules at any
time. A copy of the current Loan Rules is available at OxyLink Online when you model and apply for a
loan.

If you separate from service with OPC and all Affiliates for any reason and do not repay your
outstanding principal balance within two months following the date in which your separation from
service occurs (or at the time you submit a PSA distribution request, if sooner), your loan will
automatically be considered a Plan distribution and subject to taxation.

For information about the tax consequences of a distribution due to loan delinquency, please refer to
the Notice of Federal and State Tax Information for Plan Payments, which is attached Appendix D and
also available at OxyLink Online.


How to Apply for a Loan
You may model and request a loan through OxyLink Online. After you have modeled the loan you desire,
you may then print the loan application. You then sign, date and return the completed application to
OxyLink.

Your completed loan application must be received at OxyLink by the end of the month in which the
loan application form was printed. Plan loan applications are processed weekly. Normally, after your
completed loan application is received by OxyLink and approved by the Plan Administrator, you will
receive your loan check 4 to 5 days after the end of the week in which your request is processed.




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                                                                  PERSO NAL SAVI N GS ACCO U NT




RECEIVING PSA BENEFITS WHEN YOU LEAVE OXY

You (or your designated beneficiary, in the event of your death) are eligible to request a distribution
when you separate from service from OPC and all Affiliates for one of the reasons described below.

When you separate from service, the nonvested portion of your Matching Company Contributions
Account will be forfeited and will be used to fund future Matching Company Contributions and/or pay
for administrative Plan expenses.

If you have an outstanding PSA loan that is not repaid when you submit your distribution request, the
loan will be defaulted at the time your distribution is processed and, if applicable, will be included
with the taxable income portion of your distribution. Loan repayments will not be accepted after your
distribution request has been processed.

Amounts distributed to you from your PSA will be valued as described in the section entitled Fund
Valuations.


       Termination of If you terminate for reasons other than retirement, permanent and total disability
         Employment or death, you will be eligible to request the full value of your employee accounts and
                      the vested portion of your Matching Company Contributions Account.
          Retirement If you terminate at age 55 or older with three or more years of vesting service or
                     after you attain age 65, you will be 100 percent vested in your Matching Company
                     Contributions Account and eligible for a retirement distribution.
      Permanent and You will be considered permanently and totally disabled and eligible for a disability
      Total Disability distribution upon the earliest occurrence of one of the following events:
                          •    You receive benefits under Oxy’s Long-Term Disability Plan for more than 18
                               consecutive months.
                          •    You qualify to receive benefits from the Social Security Administration (SSA)
                               for a disability that commenced while you were an active employee. A copy
                               of your disability benefits approval letter from the SSA must accompany your
                               distribution request form.
                       To qualify for a disability distribution, you must meet one of the disability
                       requirements described above at the time you submit your PSA distribution request.
               Death If you die while you are an active employee, your PSA will be 100 percent vested
                     and your designated beneficiary will be eligible for a distribution. If you die after
                     you leave service with a deferred vested balance, your designated beneficiary will
                     be eligible to receive your remaining deferred balance. Please refer to the section
                     entitled Death Benefits for death benefit distribution information.




Participant Distribution Payment Options
Under the PSA, the normal form of payment is a lump-sum payment. You may also select one of the
other payment options described below.




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                                                                   PERSO NAL SAVI N GS ACCO U NT




If you are married when you are eligible to request a distribution, and elect to purchase an annuity,
your spouse’s notarized consent will be required if you select other than a joint and survivor annuity
with your spouse as joint annuitant. The Plan Administrator reserves the right to require satisfactory
evidence of your marital status.

All of the annuity payment options described below require a vested PSA balance of more than $5,000.

     Total Lump-Sum A single payment of your vested balance. The portion of your balance invested in
             Payment the Oxy Stock Fund will be distributed in shares of Oxy Stock unless you request it
                     in cash. Your balances in the other Funds will be distributed in cash.
         Partial Cash A request for a specified dollar portion of your vested balance. You may request
         Distribution one partial cash distribution in any 6-month period. If you receive a partial cash
                      distribution, you must wait until the next weekly processing period before you
                      may request a subsequent lump-sum payment or total annuity distribution.
                      Under this option, your Fund balances will automatically be depleted on a pro
                      rata basis in the following account depletion sequence: first your After-Tax
                      Employee Contributions Account, then your Rollover Contributions Account, then
                      your Before-Tax Employee Contributions Account, then your Matching Company
                      Contributions and ESOP Dividend Account. Your remaining balance will continue
                      to participate in Fund earnings.
              Special This option takes two processing weeks to complete. In the first processing week,
         Distribution all of your non-Oxy Stock Fund balances are rolled over to the institution you
                      designate to receive the direct rollover. This rollover is not taxable to you until
                      you take payment from that institution. In the second processing week, your Oxy
                      Stock Fund balance is paid to you in shares of Oxy common stock. This option is
                      provided in the event you want to take tax advantage of the unrealized cost basis
                      of your Oxy Stock Fund balance described in the Notice of Federal and State Tax
                      Information for Plan Payments, which is attached as Appendix D.
          Immediate Provides a fixed monthly payment for your life. No monthly payments will be
        Straight Life made after your death.
             Annuity
     Immediate Joint Provides fixed monthly payments for your life. Upon your death, the elected
        and Survivor percentage of the monthly payment will continue for the life of your joint
            Annuity annuitant. Fifty percent, 75 percent or 100 percent of your monthly payment
                     may be continued for the life of your joint annuitant. If you die, joint annuitant
                     payments are payable only to the individual you name when you select this option.
                     You may not change your joint annuitant designation after annuity payments
                     begin. If you name your spouse as your joint annuitant, it is payable only to that
                     spouse—not to anyone else you may marry at a later date.
           Immediate    Provides fixed monthly payments for your life with a guarantee by the insurance
       Ten-Year Term    company that a minimum of 120 payments will be made even if you die before
         Certain and    receiving all of them. Your designated beneficiary under the annuity will receive
          Continuous    the remaining payments.
             Annuity
       Total Deferral Defers distribution of your vested balance, but not beyond the end of the year in
                      which you attain age 70 1⁄2. You may revoke your deferral election at any time by
                      submitting another distribution request.




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                                                            PERSO NAL SAVI N GS ACCO U NT




If you are interested in purchasing one of the annuity options described above, you may request
estimates of the monthly annuity payment amounts under each option from an OxyLink representative.
If you purchase an annuity, your actual monthly payment amount will be calculated by the insurance
company using the annuity rates in effect when the cash proceeds of your PSA distribution are
received by the insurance company.

When you request the PSA to purchase an annuity on your behalf, your monthly annuity payments are
guaranteed by the insurance company from which the annuity is purchased with the balance of your
PSA. This guarantee is based on the ability of the insurance company to fulfill its obligation under the
annuity contract. It is important to note that your payments under the contract are not guaranteed
by the Pension Benefit Guaranty Corporation, as described in the section entitled Pension Benefit
Guaranty Corporation, or by OPC or any Affiliate. The taxable portion of your annuity payments paid
by the insurance company will be subject to ordinary income taxes in the tax year in which you receive
the payments.

For information about the tax consequences of a distribution, please refer to the Notice of Federal
and State Tax Information for Plan Payments, which is attached as Appendix D and also available at
OxyLink Online.


How to Request Distribution
You are eligible to request distribution after your separation from service has been processed by OPC
or the Affiliate that you worked for last. You may then request at OxyLink Online that a distribution
packet be downloaded to you for printing.

After you have carefully reviewed the information and instructions contained in the packet, complete
your distribution request form and mail it to OxyLink at the address shown on the form. Your
distribution request form must be received by the form expiration date printed on the distribution
request form. Normally, after your completed distribution request is received by OxyLink and approved
by the Plan Administrator, you will receive your distribution 4 to 5 days after the end of the week in
which your request is processed.




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                                                                  PERSO NAL SAVI N GS ACCO U NT




DEATH BENEFITS
If you die while you are a participant, your PSA will be paid to your surviving designated primary
beneficiary(ies). To receive distribution, each of your primary beneficiaries must complete a PSA
Beneficiary Distribution Request. Forms, instructions and information about the distribution options
available to beneficiaries are available from the OxyLink Employee Service Center.


Beneficiary Distribution Payment Options

For a Spousal Beneficiary
If the surviving spouse of a deceased participant is the only designated primary beneficiary, the
surviving spouse may elect one of the PSA distribution payment options described below. The annuity
payment options require a vested balance of more than $5,000.


    Total Lump-Sum A single payment of the deceased participant’s PSA balance. This option is
            Payment the normal form of payment for a spousal beneficiary. The portion of the PSA
                    distributed from the Oxy Stock Fund will be distributed in shares of Oxy Stock,
                    unless the beneficiary elects to receive it in cash. All other Funds are distributed
                    in cash.
        Partial Cash A request for a specified dollar portion of the deceased participant’s vested
        Distribution balance. The spousal beneficiary may request one partial cash distribution in
                     any 6-month period. If the spousal beneficiary receives a partial cash payment,
                     he or she must wait until the next weekly processing period before requesting a
                     subsequent lump-sum payment or total annuity distribution. Under this option,
                     the fund balances will automatically be depleted on a pro rata basis in the
                     following account depletion sequence: first, the After-Tax Employee Contributions
                     Account, then the Rollover Contributions Account, then the Before-Tax Employee
                     Contributions Account, then the Matching Company Contributions and ESOP
                     Dividend Account. Balances remaining in the PSA will continue to participate in
                     Fund earnings.
          Immediate Provides a monthly payment for the life of the beneficiary. No payments are made
        Straight Life after the beneficiary’s death.
             Annuity
          Immediate    Provides monthly payments for the life of the beneficiary with a guarantee by
      Ten-Year Term    the insurance company that a minimum of 120 payments will be made even if the
        Certain and    beneficiary dies before receiving all of them. A designated beneficiary under the
         Continuous    annuity will receive the remaining payments.
            Annuity
       Total Deferral Defers distribution of the vested balance, but not beyond the end of the year in
                      which the deceased participant would have attained age 70 1⁄2. A deferral election
                      may be revoked at any time by submitting another PSA Beneficiary Distribution
                      Request.




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                                                                  PERSO NAL SAVI N GS ACCO U NT




For a Nonspousal Beneficiary
A nonspousal beneficiary who is the deceased participant’s only designated primary beneficiary may
elect one of the distribution payment options described below. The annuity payment options require a
vested balance of more than $5,000. If the deceased participant designated other primary beneficiaries,
all beneficiaries are eligible for immediate lump-sum payments only, as described in the paragraph for
Multiple Beneficiaries shown below.

     Immediate Total A single payment of the beneficiary’s designated portion of the deceased
         Lump-Sum participant’s vested balance. This option is the normal form of payment for a
           Payment nonspousal beneficiary. The portion of the PSA distributed from the Oxy Stock
                     Fund will be distributed in shares of Oxy Stock, unless the beneficiary requests it
                     in cash. All other Funds are distributed in cash.
          Immediate Provides a monthly payment for the life of the beneficiary with no payments after
        Straight Life the beneficiary’s death.
             Annuity
           Immediate    Provides monthly payments for the life of the beneficiary with a guarantee by
       Ten-Year Term    the insurance company that a minimum of 120 payments will be made even if the
         Certain and    beneficiary dies before receiving all of them. A designated beneficiary under the
          Continuous    annuity will receive the remaining payments.
             Annuity


If the eligible beneficiary is interested in purchasing one of the annuity options described above, he or
she may request estimates of the monthly annuity payment amounts under each option by calling the
OxyLink Employee Service Center. If the eligible beneficiary purchases an annuity, the actual monthly
payment amount will be calculated by the insurance company using the annuity rates in effect when
the cash proceeds of the PSA distribution are received by the insurance company.

If the eligible beneficiary requests the PSA to purchase an annuity on his or her behalf, the monthly
annuity payments are guaranteed by the insurance company from which the annuity is purchased with
the balance in the PSA. This guarantee is based on the ability of the insurance company to fulfill its
obligation under the annuity contract. It is important to note that payments under the contract are
not guaranteed by the Pension Benefit Guaranty Corporation, as described in the section entitled
Pension Benefit Guaranty Corporation, or by OPC or any Affiliate. The taxable portion of the annuity
payments paid by the insurance company will be taxable ordinary income to the beneficiary in the tax
year in which he or she receives the payments.

If a nonspousal beneficiary does not submit his or her distribution request within 60 days of when the
form is mailed to them by the OxyLink Employee Service Center, the beneficiary will automatically be
paid, 10% federal income tax withholding will be withheld, and the balance in the Oxy Stock Fund will
be paid to the nonspousal beneficiary in shares of Oxy Stock.




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                                                             PERSO NAL SAVI N GS ACCO U NT




For Multiple Beneficiaries
If the deceased participant designated more than one primary beneficiary, each designated primary
beneficiary may elect only an immediate total lump-sum payment of the designated portion of the
deceased participant’s PSA balance.

Amounts distributed to beneficiaries from the PSA will be valued as described in the section entitled
Fund Valuations.

Normally, after your completed distribution request is received by OxyLink and approved by the Plan
Administrator, you will receive your distribution 4 to 5 days after the end of the week in which your
request is processed.

For information about the tax consequences of a death benefit distribution, please refer to the Notice
of Federal and State Tax Information for Plan Payments, which is attached as Appendix D and also
available at OxyLink Online.




REQUIRED MINIMUM PAYMENTS
This section describes the latest date that benefits can start or be paid under the Plan and current law.
You should note, however, that other provisions of the Plan may require that benefits start or be paid at
an earlier time as described elsewhere in this SPD.


During the Participant’s Lifetime
If you leave OPC and all Affiliates in or after the year you attain age 70½, you will be required to
receive a required minimum cash payment and a total lump-sum payment of your entire remaining
PSA balance by December 31 of that year. If you leave OPC and all Affiliates before you attain age
70½ and have a deferred vested PSA balance, you will be required to receive a required minimum cash
payment and a total lump-sum payment of your entire remaining balance by December 31 of the year
in which you attain age 70½.


After the Participant’s Death
If you die before commencing benefits and your spouse is the sole beneficiary, your spouse will be
required to receive a required minimum cash payment by December 31 following the year you would
have attained age 70½ or, if later, the year in which you died. If you die before commencing benefits
and your beneficiary is other than your spouse, your beneficiary must commence benefit payments by
December 31 following the year in which you died.




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                                                                    PERSO NAL SAVI N GS ACCO U NT




As required by law, a required minimum cash payment must be paid to you directly (or to your
designated beneficiary, in the event of your death) and may not be rolled over to an IRA or to another
employer’s qualified plan. However, if you elect one of the annuity payment options, the entire
balance, including the required minimum payment, will be used to purchase the annuity. The annuity
payments will be taxable income to you in the year you receive your payments.

If you are subject to the PSA’s required minimum payment provisions, you (or your designated
beneficiary, in the event of your death) will receive detailed information directly from the Plan
Administrator during the first quarter of the year you attain age 70½.




OTHER IMPORTANT PROVISIONS OF THE PSA

Employment Changes
           If You Are If you separate from service and later are rehired and meet the Plan’s eligibility
      Rehired by Oxy requirements, you may start contributing to the PSA in the first available pay
                      period following your reenrollment. The vesting service credit you had when you
                      terminated will be restored to you. If you were not fully vested when you originally
                      separated from service, you forfeited the nonvested portion of your Matching
                      Company Contributions Account. When you are rehired, that amount is reinstated
                      to your account.
       If You Transfer If you transfer to a nonparticipating location, or, for any reason, you no longer
       to an Ineligible meet the PSA’s eligibility requirements, your PSA will be placed in an inactive
               Status status. While your account is in an inactive status:
                         •    Your employee contributions and Matching Company Contributions will stop
                         •    Your PSA accounts will remain in the Plan and continue to be credited with
                              investment Fund earnings and losses
                         •    You will continue to earn vesting service credit
                         •    You will be eligible to request withdrawals, loans and Fund transfers.
     If You Are Hired   If you are hired by Oxy after being a leased employee of OPC or any Affiliate and
         by Oxy After   you become a participant in the PSA, your service during the time you were a
      Being a Leased    leased employee will be credited for eligibility and vesting purposes. Generally, the
            Employee    term “leased employee” means any person other than a common law employee
                        of OPC or any Affiliate who has worked substantially full-time for at least one year
                        through an agreement between OPC or any Affiliate and a leasing organization.




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                                                            PERSO NAL SAVI N GS ACCO U NT




Assignment of Benefits
Your PSA benefit belongs to you and generally may not be sold, assigned, transferred, pledged or
garnished under most circumstances. If you (or your beneficiary) are unable to care for your own affairs,
any elections may be made by, and any payments due may be paid to, someone who is authorized to
conduct your affairs. This may be a relative, a court-appointed guardian, or some other person. In
addition, the Plan is required to comply with IRS tax levies and with court-issued Qualified Domestic
Relations Orders (QDROs), as described in the next section.


Qualified Domestic Relations Orders
If you become divorced or separated, are required to pay child support, or are involved in a court
proceeding dividing marital property, certain court orders could require that part of your benefit be
paid to someone else—your spouse or children, for example. This is known as a Qualified Domestic
Relations Order (QDRO) and could affect the Plan benefit paid to you as well as to any beneficiary.
For a court order to qualify under the Plan, certain procedures must be followed and certain legal
requirements must be met. The Plan’s QDRO Administrator determines whether these legal standards
are met.

A booklet containing QDRO guidelines and model forms under the PSA is available upon request free
of charge. To obtain this booklet or to submit correspondence regarding a QDRO, please contact:

   Oxy Qualified Order Team
   Post Office Box 6300
   Newport Beach, CA 92658-6300
   Toll free: 866-246-0826

You may be able to speed up court proceedings and save on legal fees by getting a copy of the Plan’s
QDRO procedures for review by your attorney before any order is presented to a court awarding
someone else a share of your PSA benefit. By following the QDRO procedures, you reduce the risk that
the order will be rejected by the QDRO Administrator. If your order is rejected, you or your attorney
will need to get the court to issue a revised order.




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                                                             PERSO NAL SAVI N GS ACCO U NT




Documents Incorporated by Reference
The following documents, which have been filed by OPC or the Plan with the Securities and Exchange
Commission, are incorporated by reference in the Plan prospectus:
       •    OPC’s Annual Report on Form 10-K for the fiscal year ended December 31,
            2006,
       •    The Plan’s Annual Report on Form 11-K for the fiscal year ended December 31,
            2005,
       •    The descriptions of Oxy Stock contained in Registration Statement on Form
            8-B, dated June 26, 1986 (as amended by Form 8, dated December 22, 1986,
            Form 8, dated February 3, 1988, Form 8-B/A, dated July 12, 1993, Form 8-B/A,
            dated March 21, 1994, and Form 8-B/A, dated November 2, 1995 and any
            amendment or report filed for the purpose of updating such descriptions
            subsequent to the date of the Plan Prospectus), and
       •    All other documents subsequently filed by OPC pursuant to Sections 13(a),
            13(c), 14 and 15(d) of the Securities Exchange Act of 1934 (the 1934 Act) prior
            to the filing of a post-effective amendment which indicates that all securities
            offered have been sold or which deregisters all securities remaining unsold,
            shall be deemed to be incorporated into this prospectus.


These documents (other than exhibits to such documents, unless such exhibits are specifically
incorporated by reference into the document the prospectus incorporates), as well as all documents
required to be delivered to Plan participants pursuant to Rule 428(b) under the 1934 Act, are available
without charge by contacting the Assistant Corporate Secretary, Occidental Petroleum Corporation,
10889 Wilshire Boulevard, Los Angeles, California 90024, telephone number 310-208-8800.


Plan Continuation
OPC expects and intends to continue the PSA but reserves the right to modify, suspend, change or
terminate the Plan, or any features of the Plan, at any time or for any reason. Any amendment to the
PSA will be effected through a resolution of the Board of Directors of OPC or, in certain circumstances,
by the Plan Administrator. OPC does not guarantee the continuation of this Plan during any periods of
active employment, inactive employment, disability or retirement, nor does it guarantee any specific
level of future benefits. The Plan is purely voluntary on the part of the company, and OPC reserves
the right to terminate it at any time by action of its Board of Directors. Benefits under this Plan are
provided at the company’s discretion and do not create a contract of employment.

If material changes that affect Plan participants are made in the future, you will be notified.




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                                                             PERSO NAL SAVI N GS ACCO U NT




If you are an employee when the Plan is terminated, or if there is a partial termination of the Plan
that affects you, you will immediately become vested in your Plan benefit as of the termination date.
Distributions of Plan benefits will be made in accordance with the terms of the Plan and as directed by
OPC or the Plan Administrator.


Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation (PBGC) is a governmental agency created by ERISA.

PSA benefits are not insured by the PBGC. This Plan is one of the types of plans not covered by the
PBGC and is exempt from PBGC insurance requirements.

For more information about the PBGC and the benefits it guarantees, ask your Plan Administrator or
contact the PBGC’s Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C.
20005-4026 or call 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional information
about the PBGC’s pension insurance program is available through the PBGC’s website on the Internet
at http://www .pbgc .gov .


Plan Documents
This SPD summarizes the key features of the PSA. Complete details can be found in the official Plan
documents that legally govern the operation of the Plan. All statements made in this SPD are subject
to the provisions and terms of those documents. Plan documents include the official Plan text, the
trust agreement, the documents described under the section entitled Documents Incorporated by
Reference that are incorporated in the prospectus and such other documents and reports that are
maintained by the Plan and/or filed with a federal government agency. You may request copies of any
Plan documents by writing to the Plan Administrator at the address shown in the section entitled
Additional Information. Copies will be furnished within 30 days at a reasonable charge.


Mergers, Consolidations, and Transfers
If the Plan is merged or consolidated, or if Plan assets are transferred to another plan, the benefit you
have accrued at the time of the merger, consolidation, or transfer will be protected. Your account under
the new plan, if the plan were to terminate immediately after the change, would at least equal the
amount that you would have been entitled to receive if the current Plan had terminated just before
the change.


Overpayment
The Plan Administrator makes every effort to ensure that benefit payments are correct. If a mistake
is made when your account is distributed, the Plan Administrator reserves the right to recover any
overpayment.




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                                                             PERSO NAL SAVI N GS ACCO U NT




Data and Records
If you do not keep your most recent address on file and Oxy cannot locate you, benefit payments may
be delayed. Also, if you do not provide necessary information, such as copies of valid driver licenses or
birth certificates, in a timely manner, then payment of your benefit will be delayed.


If the Plan Becomes “Top Heavy”
A qualified retirement plan is considered “top heavy” when 60 percent or more of the benefits from
the Plan are payable to key employees. It is unlikely that this Plan will become top heavy, but if it does,
you will be notified. Special rules apply for any period of time the Plan is top heavy.


No Implied Promises
Nothing in this booklet says or implies that participation in this Plan is a guarantee of continued
employment with OPC or any Affiliate. Neither is it a guarantee that the Plan’s current benefit
formula will remain unchanged in future years.

Oral representation or promises will not be binding on the Plan. Participants and beneficiaries should
not rely on any oral description of the Plan because the written terms of the Plan document will always
govern.




CLAIMS AND APPEALS PROCEDURES

General Information About Claims
The Plan sponsor is OPC. OPC has designated the Pension and Retirement Plan Administrative
Committee as the “named fiduciary” of the Plan and Plan Administrator for purposes of ERISA. In
other words, the Plan Administrator administers the Plan for the Plan sponsor.

It is the Plan Administrator’s responsibility to interpret the Plan and make final decisions on such
things as eligibility and payment of benefits. In exercising its fiduciary responsibilities, the Plan
Administrator has discretionary authority to determine whether and to what extent participants,
surviving spouses, and beneficiaries are eligible for benefits, and to construe disputed or doubtful Plan
terms. The Plan Administrator shall be deemed to have exercised such authority properly unless it has
abused its discretion by acting arbitrarily and capriciously. All decisions of the Plan Administrator are
binding on participants, beneficiaries, alternate payees, and all other persons claiming benefits under
the Plan.




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                                                             PERSO NAL SAVI N GS ACCO U NT




A claim for benefits is a formal request by you (or your spouse or beneficiary) for the payment of
benefits due under the terms of the PSA. You (including your spouse or beneficiary) have a right to
file a formal claim for a benefit from the PSA if you believe that you are not receiving all benefits to
which you are entitled under the terms of the Plan. For example, you may believe that you are entitled
to a larger benefit or different payment terms (e.g., payment form or payment starting date) than is
indicated in response to your application for your benefit. Also, if in response to your application, the
Plan Administrator indicates that you are due no benefit under the terms of the Plan, you may file a
formal claim for benefits.

All formal claims for benefits must be submitted in writing to the Plan Administrator no later than
eighteen months after the date that the transaction occurred or should have occurred at the address
indicated in the section entitled Additional Information. The Plan Administrator is the named
fiduciary with responsibility for deciding your claim. The submission should indicate that it is a formal
claim for benefits.

An authorized representative may represent you when you file your initial claim or you appeal the
initial denial of your claim. The Plan Administrator may require that the person you select provide
evidence (such as a signed authorization) that you have authorized him or her to represent you in
connection with your claim for benefits.


Time Period for Responding to Initial Claim
Generally, the Plan Administrator will provide a response to your claim within 90 days after receiving
your claim. The Plan Administrator may notify you in writing before the end of the normal 90-day
review period that it needs up to an additional 90 days to review your claim because of special
circumstances. That notification will indicate the special circumstances requiring the extension (such
as not receiving required information) and when the Plan Administrator expects to be able to respond
to your claim. If you do not receive a response within the applicable time period, please contact the
OxyLink Employee Service Center. Alternatively, you may assume that the claim has been denied and
submit an appeal. However, in that case you will not have as much information to help you prepare a
successful appeal.

If the claim is a claim that you are disabled, the following timing rules will apply instead of those
stated in the preceding paragraph. The Plan Administrator will provide a response to your claim within
45 days after it receives your claim. The Plan Administrator may notify you in writing before the end
of the normal 45-day review period that it needs an additional 30 days to review your claim because of
special circumstances beyond the control of the Plan Administrator. If special circumstances beyond
the control of the Plan Administrator justify extending the claim period up to an additional 30 days,
you will be given written notice of this extension within the original 30-day period. Each extension
shall set forth the special circumstances beyond the control of the Plan Administrator and the date a
decision is expected.




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                                                             PERSO NAL SAVI N GS ACCO U NT




Information Provided If Initial Claim Is Denied
If your claim is denied in whole or in part, you (or your spouse or beneficiary) will receive a written
response from the Plan Administrator. The Plan Administrator’s response will include the following
information:
       •    The specific reasons for the denial;
       •    Reference to the specific Plan provisions upon which the denial was based;
       •    A description of any additional material or information that is necessary for your
            claim to be successful, and an explanation of why this information is necessary;
       •    An explanation that a full and fair review by the Plan Administrator of the
            decision denying the claim may be requested by you or your authorized
            representative by filing with the Plan Administrator, within 60 days (or, if the
            claim for benefits is based on your disability, 180 days) after such notice has
            been received, a written request for such review;
       •    A statement that you or your authorized representative have a right to receive,
            upon request and free of charge, reasonable access to or copies of documents,
            records, and other information relevant to your claim for benefits, other than
            legally privileged documents, and to submit issues and comments in writing
            within the period specified above; and
       •    A statement that you have a right to bring a civil action under ERISA, following
            an adverse determination on any appeal you file after the initial denial of your
            claim.


If the Plan Administrator’s response does not include all of this information, please contact the
OxyLink Employee Service Center and request the missing information.


Appeal Procedure If Initial Claim Is Denied
If your initial claim is denied, you (or your spouse or beneficiary) may appeal the denial and request
that the Plan Administrator further review your claim. You must submit your appeal in writing to the
Plan Administrator at the address noted in the section entitled Additional Information within 60 days
(or, if the claim for benefits is based on your disability, 180 days) after you receive the notice denying
your initial claim. If you do not submit your appeal by this deadline, you will lose the opportunity to
make an appeal and you may lose the right to bring a lawsuit challenging the denial of benefits.

In connection with your appeal, you may submit written comments, documents, records, or other
information relating to your claim. Upon request, the Plan Administrator will provide you with
reasonable access to and copies of documents, records, and other information relevant to your claim
for benefits. However, certain documents, records, and other information may not be available to you
(such as information protected by privacy laws).




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                                                              PERSO NAL SAVI N GS ACCO U NT




Generally, you will receive a response within 60 days (or, in the case of a disability claim, 45 days) after
the Plan Administrator receives your appeal. The Plan Administrator may notify you in writing before
the end of the normal 60-day review period that it needs an additional 60 days (or, in the case of a
disability claim, 45 days) to review your claim because of special circumstances. That notification will
indicate the special circumstances requiring the extension (such as not receiving required information)
and when the Plan Administrator expects to be able to respond to your claim. If you do not receive a
response within the applicable time period, please contact the Plan Administrator.

The Plan Administrator will consider your appeal, taking into account all comments, documents,
records, and other information submitted, including information not submitted or considered in the
initial decision on your claim. Any decision made by the Plan Administrator on appeal will be final and
conclusive.


Information Provided If Appeal Is Denied
If your appeal is denied in whole or in part, you will receive a written response from the Plan
Administrator. The Plan Administrator’s response will include the following information:
       •    The specific reasons for the denial;
       •    Reference to the specific Plan provisions upon which the denial was based;
       •    A statement that, upon request, you or your authorized representative is
            entitled to receive, free of charge, reasonable access to and copies of documents,
            records, and other information relevant to your claim for benefits; however,
            certain documents, records, and other information may not be available to you
            (such as information protected by attorney-client privilege); and
       •    A statement that you have a right to bring a civil action under ERISA following
            the adverse determination on your appeal.


If the Plan Administrator’s response does not include all of this information, please contact the
OxyLink Employee Service Center and request the missing information.

All decisions made by the Plan Administrator under this benefits claims procedure are final and there
shall be no further right of appeal.


Legal Proceedings
You (or your spouse or beneficiary) may have a right to bring a lawsuit under ERISA, challenging the
denial of an appeal of your claim for benefits. If you do not fully utilize the claims procedures outlined
previously, including the right to appeal the initial denial of your claim, the Plan Administrator expects
to assert that any lawsuit you file attempting to recover on your claim for benefits should be dismissed
because you have not fully exhausted the available administrative remedies. A number of courts have




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                                                              PERSO NAL SAVI N GS ACCO U NT




ruled that lawsuits brought by participants or beneficiaries seeking plan benefits will be dismissed in
these circumstances. You should discuss this point with your legal advisor because there are differences
in how courts address this issue under various circumstances.

Also, the Plan has a special rule to promote a prompt resolution of any disagreement that you or your
beneficiaries may still have about your benefit. In addition to any earlier deadlines that may apply
for filing a lawsuit, the Plan document provides that no lawsuit challenging the claim denial may
be filed with a court after the later of (i) 180 days after receiving the written response of the Plan
Administrator to an appeal, or (ii) 365 days after an applicant’s original application for benefits (bearing
in mind that if you do not receive a response to your appeal by the deadline outlined above, then you
may treat your appeal as having been denied).




YOUR RIGHTS AS PLAN PARTICIPANT

As a participant in this Plan, you are entitled to certain rights and protections under the Employee
Retirement Income Security Act of 1974 (ERISA) as follows:


Receive Information About Your Plan and Benefits
       •    Examine, without charge, at the Plan Administrator’s office and at other
            specified locations, all documents governing the Plan, including insurance
            contracts and collective bargaining agreements, and a copy of the latest annual
            report (Form 5500 Series) that is filed by the Plan with the U.S. Department
            of Labor and available at the Public Disclosure Room of the Employee Benefits
            Security Administration.
       •    Obtain, upon written request to the Plan Administrator, copies of all
            documents governing the operation of the Plan, including insurance contracts
            and collective bargaining agreements, and copies of the latest annual report
            (Form 5500 Series), and an updated summary plan description. The Plan
            Administrator may make a reasonable charge for the copies.
       •    Receive a summary of the Plan’s annual financial report. The Plan
            Administrator is required by law to furnish each participant with a copy of this
            summary annual report.
       •    Obtain a statement telling you whether you have a right to receive a pension at
            normal retirement age (age 65) and if so, what your benefit would be at normal
            retirement age if you stop working under the Plan now. If you do not have a
            right to a pension, the statement will tell you how many more years you have to
            work to get a right to a pension. This statement must be requested in writing
            and is not required to be given more than once every 12 months. The Plan
            must provide the statement free of charge.




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                                                              PERSO NAL SAVI N GS ACCO U NT




Prudent Action by Plan Fiduciaries
 In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are
 responsible for the operation of the employee benefit plan. The people who operate your Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan
 participants and beneficiaries. No one, including your employer or any other person, may fire you
 or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or
 exercising your rights under ERISA.


Enforce Your Rights
If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know
why this was done, to obtain copies of documents relating to the decision without charge, and to
appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a
copy of Plan documents or the latest annual report from the Plan and do not receive them within 30
days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator
to provide the materials and pay you up to $110 a day until you receive the materials, unless the
materials were not sent because of reasons beyond the control of the Plan Administrator. If you have
a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal
court. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified
status of a domestic relations order or a medical child support order, you may file suit in a federal court.
If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit
in a federal court. The court will decide who should pay court costs and legal fees. If you are successful,
the court may order the person you have sued to pay these costs and fees. If you lose, the court may
order you to pay these costs and fees, for example, if it finds your claim is frivolous.


Help With Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator. If you have
any questions about this statement or about your rights under ERISA, or if you need assistance with
obtaining documents from the Plan Administrator, you should contact:
       •    The nearest office of the Employee Benefits Security Administration, U.S.
            Department of Labor, listed in your telephone directory; or
       •    The Division of Technical Assistance and Inquiries, Employee Benefits
            Security Administration, U.S. Department of Labor, 200 Constitution Avenue,
            N.W., Washington, D.C. 20210.


You may also obtain certain publications about your rights and responsibilities under ERISA by calling
the publications hotline of the Employee Benefits Security Administration.




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ADDITIONAL INFORMATION
Outlined below is additional information about the PSA and the persons who have assumed
responsibility for its operation.

                  Plan Name     Occidental Petroleum Corporation Savings Plan

     Plan Sponsor’s Employer    95-4035997
        Identification Number

                Plan Number     001

              Plan Year Ends    December 31

         Plan Administrative    Occidental Petroleum Corporation
        Services Provided By    10889 Wilshire Boulevard
                                Los Angeles, California 90024
                                310-208-8800

          Plan Administrator    Occidental Petroleum Corporation
                                Pension and Retirement Plan Administrative Committee
                                10889 Wilshire Boulevard
                                Los Angeles, California 90024
                                310-208-8800

                Plan Sponsor    Occidental Petroleum Corporation
                                10889 Wilshire Boulevard
                                Los Angeles, California 90024

                  Employers     Occidental Petroleum Corporation and participating Affiliates as
                                listed in Appendix B

            Named Fiduciary     The Occidental Petroleum Corporation
                                Pension and Retirement Plan Administrative Committee
                                (same address as above)

                Plan Trustee    The Bank of New York Trust Company, N.A.
                                700 S. Flower Street, Suite 200
                                Los Angeles, California 90017-4104

                   Plan Type    The PSA is intended to be a tax-qualified defined contribution
                                plan containing a qualified cash or deferred arrangement and
                                employee stock ownership plan.

           Address for Legal    Service for legal process related to the PSA may be made upon
                    Process     the Plan Trustee or the Plan Administrator at the addresses listed
                                above.

                     Funding    Employees may make before-tax contributions (including, if
                                eligible, catch-up contributions) and may also make after-tax
                                contributions. These contributions are described in the section
                                entitled Your Contributions to PSA.

                                The Plan sponsor makes matching contributions in the section
                                entitled Oxy’s Matching Company Contributions.




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LIST OF ATTACHED APPENDICES

Current versions of these appendices are available online at OxyLink (http://oxylink .oxy .com)


 Appendix                                   Description                                       Dated
                 Maximum Contribution Percentages, Company Matching
      A                                                                                 January 2007
                 Contributions and Government Limits

      B          Participating Affiliates                                               January 2007
      C          Fund Descriptions                                                      March 2007
      D          Notice of Federal and State Tax Information for Plan Payments          January 2007




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APPENDIX A


PERSONAL SAVINGS ACCOUNT (PSA)
MAXIMUM CONTRIBUTION PERCENTAGES,
COMPANY MATCHING CONTRIBUTIONS AND GOVERNMENT LIMITS
(As of January 2007)


  This Appendix A constitutes part of a prospectus covering securities that have been registered
  under the Securities Act of 1933.



                                 2007 PSA Contribution Table
If Your Base Pay Is:                                Your Base Pay Contribution
                                                    Percentage Is:
   Under $100,000                                   1.0 to 27.0%

  $100,000, up to $225,000
                                                    1.0 to 14.0%
  annual compensation limit

If You Receive an Annual Bonus:                     Your Annual Bonus Contribution
                                                    Percentage Is:
  On the first $100,000 of
                                                    1.0 to 6.0%
  eligible Annual Bonus




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  Company Matching Contribution Rate Table (up to the first 6% of Earnings contributed)
                               (As of January 1, 2007)
Salaried and Hourly Non-Represented Employees                                                 100%
Represented Employees
  United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
                                                                                              100%
  Service Workers International Union, Local 2154-03

  United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
                                                                                              100%
  Service Workers International Union, Local 14734

  International Brotherhood of Teamsters, Local 560                                           100%
  Niagara Hooker Employees Union                                                              100%
  United Food and Commercial Workers, Local 72D                                               100%
  International Association of Machinists and Aerospace Workers, Lodge 27                     100%
  United Association of Journeyman and Apprentices of the
                                                                                              100%
  Plumbing and Pipefitting Industry, Local 502

  International Brotherhood of Electrical Workers, Local 369                                  100%
  United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
                                                                                               50%
  Service Workers International Union, Local 6346-25

  International Union of Operating Engineers, AFL-CIO, Local 351                               65%
  International Union of Operating Engineers, AFL-CIO, Local 119                               90%
  Teamsters Union, Affiliated with International Brotherhood of Teamsters, Local 795           50%
  United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
                                                                                               75%
  Service Workers International Union, Local 620




                                     2007 Government Limits Table

   Regular Before-Tax Contributions                                                         $15,500
   Age 50+ Catch-Up Contributions                                                           $5,000
   Maximum Earnings Taken Into Account for PSA
                                                                                           $225,000
   (annual compensation limit)
   Maximum Contribution Limit (to all defined contribution plans)                          $45,000




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APPENDIX B


PERSONAL SAVINGS ACCOUNT (PSA)
PARTICIPATING AFFILIATES
(As of January 2007)


  This Appendix B constitutes part of a prospectus covering securities that have been
  registered under the Securities Act of 1933.



  Centurion Pipeline GP, Inc.
  Glenn Springs Holdings, Inc.
  INDSPEC Chemical Corporation
  Miller Springs Remediation Management, Inc.
  Natural Gas Odorizing, Inc.
  Occidental Chemical Corporation
  Occidental Energy Marketing, Inc.
  Occidental Energy Transportation LLC
  Occidental Energy Transportation (LA) LLC
  Occidental Energy Ventures Corp.
  Occidental International Corporation
  Occidental of Elk Hills, Inc.
  Occidental Oil and Gas Corporation
  Occidental Permian Services, Inc.
  OXY Inc.
  OXY USA Inc.
  Oxy Vinyls Services, Inc.




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APPENDIX C


PERSONAL SAVINGS ACCOUNT (PSA)
FUND DESCRIPTIONS
(As of March 2007)


    This Appendix C constitutes part of a prospectus covering securities that have been registered
    under the Securities Act of 1933.


Individual descriptions of each current PSA investment Fund, as of March 31, 2007, are shown below.
The current PSA investment Funds are also available online at OxyLink in the document called PSA
Fund Descriptions. This document is updated when necessary and annually, each December.


Stable Value Fund
This conservative risk Fund is designed to provide stable, predictable returns. Your contributions
are invested in stable value investment contracts (SVCs) which guarantee an interest rate and the
repayment of principal. It is important to note that the SVCs are not guaranteed by the federal
government or by Oxy. The guarantee is based solely on the ability of the contract providers to fulfill
their obligations under these contracts. As a participant in this Fund, you will earn a “blended” interest
rate that reflects the combined earnings for all SVCs held under the Fund.

Currently, this Fund is individually managed on behalf of the PSA by INVESCO of Louisville,
Kentucky. An individual prospectus is not published for this Fund.


Bond Fund
This moderate risk Fund seeks to maximize total return, consistent with preservation of capital
and prudent investment management. “Total return” means increases in portfolio value resulting
from capital appreciation plus net income earned on the Fund’s investments. The Fund normally
invests at least 65 percent of its assets in a diversified portfolio of investment grade bonds of varying
maturities. It may also invest in other types of fixed income instruments of the U.S. government and
corporate debt securities, mortgage and other asset-backed securities, U.S. dollar and foreign currency-
denominated securities of foreign issuers and money market instruments. Depending on market
conditions, the Fund may invest all of its assets in derivative instruments, such as options, futures
contracts or swap agreements, or in mortgage or asset-backed securities. The average portfolio duration
of the Fund will normally vary within a 3- to 6-year time frame based on the manager’s forecast of
interest rates. Investment selections are made primarily in areas of the intermediate-term bond market
(based on quality, sector, coupon or maturity) which the manager believes to be relatively undervalued.




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The Fund may invest up to 10 percent of its assets in fixed income securities that are rated below
investment grade but rated B or higher by Moody’s or Standard & Poor’s (or, if unrated, determined
by the manager to be of comparable quality). The Fund may invest up to 20 percent of its assets in
securities denominated in foreign currencies, and may invest beyond this limit in U.S. denominated
securities of foreign issuers.

Currently, this Fund is invested in the PIMCO Total Return Fund (Institutional Class Shares), an
institutional mutual fund managed by Pacific Investment Management Company (PIMCO) of
Newport Beach, California. You may obtain a copy of the prospectus for this fund at www .pimco .com, or
by speaking to an OxyLink representative during normal business hours at 800-699-6903.


Diversified Balanced Fund
This moderate risk Fund is a balanced growth and income Fund that seeks regular income,
conservation of principal and an opportunity for long-term growth of principal and income.

The Fund invests in a diversified portfolio of common stocks, preferred stocks and fixed-income
securities. Stocks include those of companies that, in the manager’s opinion, are temporarily
undervalued by the stock market but have a favorable outlook for long-term growth. The Fund will
hold no more than 75 percent of its total assets in stocks. Fixed-income securities include a diversified
portfolio of investment grade fixed-income securities, including U.S. government obligations,
mortgage and asset-backed securities, corporate bonds, collateralized mortgage obligations (CMOs)
and others.

Currently, Dodge & Cox of San Francisco, California manages the Fund, which is invested in
its Balanced Fund, a mutual fund. You may obtain a copy of the prospectus for this fund at
www .dodgeandcox .com, or by speaking to an OxyLink representative during normal business hours at
800-699-6903.


Convertible Bond Fund
This aggressive risk Fund invests in convertible securities such as convertible bonds and preferred
stocks issued by U.S. and foreign companies. Convertible bonds are debt instruments that are
issued by companies to generate capital. The convertible bonds can be converted to the issuing
company’s stock at any time at the manager’s option. Depending on the particular issue, these
hybrid investments can offer some of the upside potential returns of stocks and the lower volatility of
bonds. Convertible bonds can potentially provide higher risk-adjusted total returns relative to other
asset classes. The fixed income portion of a convertible bond provides downside protection, while
the underlying common stock’s performance can generate significant upside returns; in other words,
stock-like return with bond-like risk.

Currently, this Fund is individually managed exclusively for the PSA by Advent Capital Management
(ACM) of New York, New York, a division of Utendahl Capital Management, L.P. (UCM). Merrill
Lynch owns a minority interest in UCM. An individual prospectus is not published for this Fund.




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S&P 500 Index Fund
This aggressive risk Fund seeks investment results that parallel the performance of the unmanaged
Standard & Poor’s 500 Composite Stock Price Index. The Fund holds all of the 500 underlying
securities in proportion to their weighting in the index. Given this objective, this Fund is expected to
provide investors with long-term growth of capital and income as well as a reasonable level of current
income. The Fund is a passively managed, commingled Fund limited to institutional investors.

Currently, this Fund is invested in the Vanguard Employee Benefit Index Fund, a commingled
trust managed by The Vanguard Group of Valley Forge, Pennsylvania. You may obtain a copy of the
prospectus for this fund at	www .vanguard .com, or by speaking to an OxyLink representative during
normal business hours at 800-699-6903.


Large Cap Value Fund
This aggressive risk Fund invests in approximately 50 to 70 well-established U.S. companies with an
emphasis on industries where stocks are judged to be priced unrealistically low, giving them above-
average future return potential. The Fund seeks to outperform the U.S. stock market over the long
term.

The expected return of each stock in which the Fund may invest is calculated at its current price, then
all of the stocks are ranked based on their anticipated returns. In building the Fund’s portfolio, the
manager places a heavier emphasis on the top value stocks. As stocks approach their estimated fair
market value, they are sold and the Fund’s portfolio is re-ranked.

Currently, this Fund is individually managed exclusively for the PSA by Alliance Bernstein of New York,
New York. An individual prospectus is not published for this Fund.


Large Cap Blend Fund
This aggressive risk Fund seeks to increase investment value over the long term through capital
appreciation by investing in either “growth” stocks or “value” stocks, or a combination of both. The
Fund invests in a much-diversified mix of common stocks and securities convertible into common
stock of all types of companies and in all industries. International securities may also be purchased. An
investment in this Fund carries a high level of investment risk in return for high earnings potential.

Currently, this Fund is invested in the Magellan® Fund, a mutual fund managed by Fidelity
Management & Research Company of Boston, Massachusetts. You may obtain a copy of the prospectus
for this fund at www .fidelity .com, or by speaking to an OxyLink representative during normal business
hours at 800-699-6903.




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Mid Cap Index Fund
This aggressive risk Fund seeks investment results that parallel the performance of the unmanaged
MSCI (Morgan Stanley Capital International) US Mid Cap 450 Index®. The Fund holds all 450
underlying securities in proportion to their weighting in the index. Given this objective, the fund is
expected to provide investors with long-term growth of capital as well as broad diversification and
significantly less specific-issue risk than a more concentrated fund. The Fund is passively managed.

Currently, this Fund is invested in the Vanguard Mid-Cap Index Fund–Institutional Class, an
institutional mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. You may
obtain a copy of the prospectus for this fund at www .vanguard .com, or by speaking to an OxyLink
representative during normal business hours at 800-699-6903.


REIT Index Fund
This aggressive risk Fund seeks investment results, with respect to at least 98 percent of its assets,
that parallel the performance of the Morgan Stanley REIT Index that covers approximately two-thirds
of the value of the entire U.S. real estate investment trust (REIT) market. Given this objective, the
Fund is expected to provide investors with a high level of income and moderate long-term capital
growth by investing at least 98 percent of its assets in stocks issued by REITs and up to 2 percent in
cash equivalent investments. The Fund is passively managed.

Effective March 31, 2006, the Fund manager made changes to its frequent-trading and redemption-
fee policies that apply to PSA participants with balances in the REIT Fund after March 30, 2006.
Below is a summary of the changes that took place effective March 31, 2006:

            Frequent- Participants who transfer balances out of the REIT Fund on or after March 31,
       Trading Policy 2006 will not be permitted to transfer any balances back into the REIT Fund for 60
                      days.
     Redemption-Fee On or after March 31, 2006, if any portion of the balance a participant elects to
              Policy transfer out of the REIT Fund includes monies that were previously transferred
                     into the fund after March 30, 2006 and those monies remained invested in the
                     fund for less than a 12-month period that begins on or after March 31, 2006, a 1
                     percent redemption fee will be charged to the participant on the portion of the
                     amount transferred out of the REIT Fund that was invested in the fund for less
                     than a 12-month period that began on or after March 31, 2006.
                       Redemption fees will not apply to periodic employee contributions, rollover
                       contributions and loan repayments that a participant may invest in the REIT Fund
                       unless those monies are included in fund transfer activity that occurs after March
                       31, 2006.


Currently, this Fund is invested in the Vanguard REIT Index Fund–Institutional Class, an institutional
mutual fund managed by The Vanguard Group of Valley Forge, Pennsylvania. You may obtain a copy of
the prospectus for this fund at www .vanguard .com, or by speaking to an OxyLink representative during
normal business hours at 800-699-6903.




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High Yield Bond Fund
 This aggressive risk Fund seeks a high level of income, with capital appreciation as a secondary goal,
 by investing primarily in below investment-grade corporate debt securities, commonly referred to as
“junk” or “high-yield” bonds. Under normal market conditions, the fund invests at least 80 percent of
 its total assets in high yield corporate debt obligations rated Ba or B by Moody’s Investors Services,
 Inc. (Moody’s) or BB or B by Standard & Poor’s Corporation (S&P). The Fund will not invest in fixed
 income securities rated below Caa by Moody’s or CCC by S&P, and the Fund will not invest more than
10 percent of the Fund’s total assets in securities with Caa or CCC ratings.

The value of the Fund’s fixed income securities holdings responds to economic developments,
especially changes in interest rates, as well as to perceptions of the creditworthiness of individual
issuers. The Fund’s investments in high yield securities expose it to a substantial degree of credit
risk. These investments are considered speculative under traditional investment standards. Prices of
high yield securities will rise and fall primarily in response to changes in the issuer’s financial health,
although changes in market interest rates will also affect prices. Generally, fixed income securities
decrease in value as interest rates rise and vice versa. High yield securities may experience reduced
liquidity and sudden and substantial decreases in price during certain market conditions.

Currently, this Fund is invested in the CMG High Yield Fund, an institutional mutual fund managed
by Columbia Management Group of Boston, Massachusetts. You may obtain a copy of the prospectus
for this fund at	www .institutional .columbiamanagement .com, or by speaking to an OxyLink representative
during normal business hours at 800-699-6903.


Growth Fund
This very aggressive risk Fund invests primarily in equity securities, principally common stocks,
preferred stocks, rights, and depository receipts of companies with market capitalization of at least
$1 billion and above-average prospects for growth. Stocks of mid and large capitalization companies
in the Fund’s portfolio are expected to maintain or achieve above-average earnings growth. The Fund
may invest up to 20 percent of its assets in the securities of foreign issuers, including issuers located or
doing business in emerging markets.

The Fund’s manager seeks stocks that have a superior absolute and relative earnings growth, superior
sales growth, improving sales momentum and high levels of unit growth, high or improving profitability,
and strong balance sheets. In addition, the Fund manager looks for companies that have actually
achieved or exceeded expected earnings and are attractively valued relative to their growth prospects.

Currently, this Fund is invested in the Harbor Capital Appreciation Fund, an institutional mutual
fund that is managed for Harbor Capital Advisors, Inc. (HCA) of Toledo, Ohio, by Jennison Associates,
LLC, a registered investment advisor of HCA. You may obtain a copy of the prospectus for this fund
at www .harborfunds .com, or by speaking to an OxyLink representative during normal business hours at
800-699-6903.




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International Equity Fund
This very aggressive risk Fund is an international equity fund that seeks long-term growth of capital
and income by investing primarily in common stocks of companies in developed countries located
outside the U.S. Normally, the Fund invests at least 80 percent of its total assets in stocks in at least
10 foreign markets and invests the majority of its total assets in companies that pay dividends or
repurchase their shares. The Fund may invest up to 30 percent of its assets in stocks of companies
located in any one country, except this limit is 35 percent in the U.K. When investing the Fund’s
assets, the manager follows a value style. This means that the manager buys stocks that it believes are
currently undervalued by the market and thus have a lower price than their true worth. The Fund may
also invest in derivatives including forward currency contracts, futures, swaps and options.

There are significant associated risks when investing in the securities of foreign companies. These
include, but are not limited to, market and selection risk, foreign market risk, currency exchange rate
risk, liquidity risk and political risk.

Currently, this Fund is invested in the Causeway International Value Fund, an institutional mutual
fund managed by Causeway Capital Management LLC of Los Angeles, California. You may obtain
a copy of the prospectus for this fund at www .causewayfunds .com, or by speaking to an OxyLink
representative during normal business hours at 800-699-6903.


Small Cap Value Fund
This very aggressive risk Fund seeks to maximize total returns by investing in equity securities of small
capitalization companies considered to be undervalued by the market. The objective of the Fund is to
outperform the Russell 2500 Small Cap Index® over full market cycles. This Fund is permitted to use
stock index options and futures as a temporary method of investing new cash flow into the Fund.

Currently, this Fund is individually managed exclusively for the PSA by Alliance Bernstein of New York,
New York. An individual prospectus is not published for this Fund.


Oxy Stock Fund
The PSA Trustee invests your contributions, Oxy’s Matching Company Contributions, and dividends
on shares held in the Fund and short-term investment income in this very aggressive risk Oxy Stock
Fund. To meet liquidity requirements, the Trustee holds 1-3 percent of the Fund in cash that is
invested in short-term investment instruments. Shares may be purchased in the open market or
directly from Oxy or any other individual. As of December 31, 2006, 2,815,744 shares of Oxy Stock
were available for purchase by the Plan Trustee directly from Oxy. Currently, all sales and purchases are
made with Oxy treasury stock and all fees are paid by Oxy.




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Currently, all additional shares of Oxy Stock necessary to meet Fund obligations are purchased
directly from Oxy. If the total purchase price is $10 million or more, shares will be purchased at a per
share price that does not exceed the average of the closing sales prices for the last five Trading Days
preceding the date of the purchase. If the total purchase price is less than $10 million, shares will
be purchased at a per share price that does not exceed the average of the closing sales prices for the
last three Trading Days preceding the date of the purchase. In both cases, the per share price may
not exceed the average closing sales prices reported by the consolidated transaction reporting system
established pursuant to Section 11A(c) of the Securities Exchange Act of 1934.

The Fund’s investment manager is the Plan’s Trustee, Bank of New York of New York, New York.


Pass-Through Dividend Payment Option
Participants may elect to have the dividends allocated each quarter to their Company Matching
Contribution Account under the Oxy Stock Fund immediately paid to them in a taxable cash payment.
If you do not elect this option, dividends will continue to be reinvested under the Oxy Stock Fund and
will be tax deferred. If you elect the pass-through dividend payment option, the payments you receive
are:
       •    Taxable to you as ordinary income in the year you receive them and will be
            reported to you and the IRS on form 1099-DIV (1099-DIV income recipients
            may not file tax returns using form 1040EZ),
       •    Not eligible to be rolled over to an IRA or another qualified plan, and
       •    Not subject to federal or state withholding tax when payment is made, but you
            may be responsible for taxes owed when you file your personal tax return.


You can elect or revoke the pass-through dividend payment option at anytime on OxyLink Online.




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APPENDIX D


PERSONAL SAVINGS ACCOUNT (PSA)
NOTICE OF FEDERAL AND STATE TAX INFORMATION
FOR PLAN PAYMENTS
(As of January 1, 2007)


    This Appendix D constitutes part of a prospectus covering securities that have been registered
    under the Securities Act of 1933.



Introduction
The PSA is a tax-qualified plan under Sections 401(a) and 401(k) of the Code. Monies that remain
in the Plan are not subject to federal income tax until you (or your beneficiary, in the event of your
death) receive a withdrawal or distribution payment from the Plan. You may choose to delay the
commencement of your benefit until the end of the year in which you attain age 70½. If you choose
to take payments earlier, you are giving up your right to continue to invest these amounts on a
tax-deferred basis. This notice explains how you can continue to defer federal income tax on your
retirement savings under the PSA. It contains important information you will need before you decide
how to receive your PSA benefits.

The Code contains several complex rules relating to the taxation of amounts that you request to be paid
from the PSA. This notice contains important information you will need before you decide to receive a
PSA payment. It merely summarizes these rules (which are subject to change) and is not intended as tax
advice.

If you are not a U.S. citizen or Green Card holder, additional federal tax regulations and withholding
requirements may apply to you for payments you receive from the PSA. Please contact OxyLink for
additional information.

You have choices available to you under these rules, but there are different tax consequences connected
with each choice. In making your decision, it is recommended that you consult an independent tax
advisor.

All or part of the payment(s) that you receive from the Plan may be eligible for rollover by you or your
Plan Administrator to a traditional IRA or an eligible employer plan. A rollover is a payment by you or
the Plan Administrator of all or part of your benefit to another plan or IRA that allows you to continue
to defer taxation of that benefit until it is paid to you. Your payment cannot be rolled over to a Roth
IRA, a SIMPLE IRA, or a Coverdell Education Savings Account (formerly known as an education IRA).




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An “eligible employer plan” includes a plan qualified under section 401(a) of the Internal Revenue
Code, including a 401(k) plan, profit-sharing plan, defined benefit plan, stock bonus plan, and money
purchase plan. It also includes a section 403(a) annuity plan; a section 403(b) tax-sheltered annuity;
and an eligible section 457(b) plan maintained by a governmental employer (governmental 457 plan).

An eligible employer plan is not legally required to accept a rollover. Before you decide to roll over your
payment to another employer plan, you should find out whether the plan accepts rollovers and, if so,
the types of distributions it accepts as a rollover. You should also find out about any documents that
are required to be completed before the receiving plan will accept a rollover. Even if a plan accepts
rollovers, it might not accept rollovers of certain types of distributions, such as nontaxable after-tax
contribution amounts. If this is the case, and your distribution includes after-tax contribution amounts,
you may wish instead to roll your distribution over to a traditional IRA. If an employer plan accepts
your rollover, the plan may restrict subsequent distributions of the rollover amount or may require
your spouse’s consent for any subsequent distribution. A subsequent distribution from the plan that
accepts your rollover may also be subject to different tax treatment than distributions from the PSA.
Check with the administrator of the plan you select to receive your rollover prior to submitting your
completed PSA payment request form.


Required Notification Period
Currently, IRS regulations require that you receive a copy of this written tax notification no more than
90 days before you receive a Plan payment (this notice accompanies the payment request form issued
by OxyLink). To comply with the requirement, the payment request form must be completed by you
and received by OxyLink and approved by the Plan Administrator no later than the form expiration
date shown on the request form. If your completed form is not received at OxyLink by this date, your
payment request will not be processed and you will be required to request and complete a new form
and submit it to OxyLink by the date specified on the new form.


Required 30-Day Waiting Period
IRS regulations also require that you have at least 30 days from the date of this notice to make a
decision about the payment of all or a portion of your PSA benefits. Thus, unless you waive your right
to this 30-day waiting period, the Plan Administrator will not process your payment request before the
30th day after the date shown on the tax notification.

You can waive this 30-day waiting period and receive a PSA payment before the end of the 30-day
waiting period by signing and dating the signature section of the payment request form and mailing
your completed form to OxyLink within the 30-day period.

Please note that your election to waive the 30-day waiting period does not obligate the Plan
Administrator to make payment to you within 30 days. The time in which a payment is made depends
not only on whether or not you waive the 30-day waiting period, but also on the form of payment
that you elect and when your payment request form is received by OxyLink and approved by the Plan
Administrator.




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You may revoke your payment election in writing until your payment is processed or until the
expiration of a 7-day period that begins the day following the date of the 30-day notice, whichever is
later.


Summary
There are two ways you may be able to receive a Plan payment that is eligible for rollover:
       •    Certain payments can be made directly to a traditional IRA that you establish
            or to an eligible employer plan that will accept it and hold it for your benefit
            (“direct rollover”); or
       •    The payment can be paid to you.


If you choose a direct rollover:
       •    Your payment will not be taxed in the current year and no income tax will be
            withheld.
       •    You choose whether your payment will be made directly to your traditional IRA
            or to an eligible employer plan that accepts your rollover. Your payment cannot
            be rolled over to a Roth IRA, a SIMPLE IRA, or a Coverdell Education Savings
            Account because these are not traditional IRAs.
       •    The taxable portion of your payment will be taxed later when you take it out
            of the traditional IRA or the eligible employer plan. Depending on the type of
            plan, the later distribution may be subject to different tax treatment than it
            would be if you received a taxable distribution from the PSA.


If you choose to have a Plan payment that is eligible for a rollover paid to you:
       •    You will receive only 80 percent of the taxable amount of the payment, because
            the Plan Administrator is required to withhold 20 percent of that amount and
            send it to the IRS as income tax withholding to be credited against your taxes
            (state tax withholding may also apply).
       •    The taxable amount of your payment will be taxed in the current year unless
            you roll it over. Under limited circumstances, you may be able to use special tax
            rules that could reduce the tax you owe. However, if you receive the payment
            before age 59½, you may have to pay an additional 10 percent tax.
       •    You can roll over all or part of the payment by paying it to your traditional IRA
            or to an eligible employer plan that accepts your rollover within 60 days after
            you receive the payment. The amount rolled over will not be taxed until you
            take it out of the traditional IRA or the eligible employer plan.




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       •      If you want to roll over 100 percent of the payment to a traditional IRA or an
              eligible employer plan, you must find other money to replace the 20 percent of
              the taxable portion that was withheld for federal income tax (plus any amount
              withheld for state income tax). If you roll over only the 80 percent that you
              received, you will be taxed on the 20 percent that was withheld and that is not
              rolled over.


More Information

           Part I Payments That Can and Cannot Be Rolled Over

           Part II Direct Rollover

        Part III Payment Paid to You

        Part IV Surviving Spouses, Alternate Payees, and Other Beneficiaries




Part I — Payments That Can and Cannot Be Rolled Over
Payments from the PSA may be “eligible rollover distributions.” This means that they can be rolled
over to a traditional IRA or to an eligible employer plan that accepts rollovers. Payments from a plan
cannot be rolled over to a Roth IRA, a SIMPLE IRA, or a Coverdell Education Savings Account. The
Plan Administrator should be able to tell you what portion of your payment is an eligible rollover
distribution.

After-Tax (Nontaxable) Contributions. If you have any remaining nontaxable after-tax contributions
under the Plan, the nontaxable amount, if any, is shown in the Direct Rollover Election section of your
payment request form. These after-tax contributions, if any, may be rolled into either a traditional IRA
or to certain employer plans that accept rollovers of the after-tax contributions.




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The following rules apply:

      Rollover into a You can roll over any after-tax (nontaxable) contributions to a traditional IRA
      Traditional IRA either directly or indirectly. If you have any remaining after-tax contributions
                      and you roll them over to a traditional IRA, it is your responsibility to keep track
                      of, and report to the IRS on the applicable forms, the amount of these after-tax
                      contributions. This will enable the nontaxable amount of any future distributions
                      from the traditional IRA to be determined. Once you roll over your after-tax
                      contributions to a traditional IRA, those amounts cannot later be rolled over to an
                      employer plan.
      Rollover into an You can roll over nontaxable after-tax contributions from the PSA, if any, to
       Employer Plan another employer plan that is qualified under Code section 401(a) or to a section
                       403(a) annuity plan or a section 403(b) tax sheltered annuity contract using a
                       direct rollover if the other plan provides separate accounting for amounts rolled
                       over, including separate accounting for the after-tax employee contributions and
                       earnings on those contributions. You cannot roll over after-tax contributions to
                       a governmental 457 plan. If you want to roll over your after-tax contributions to
                       an employer plan that accepts these rollovers, you cannot have the after-tax
                       contributions paid to you first. You must instruct the Plan Administrator on your
                       payment election form to make a direct rollover payable on your behalf. Also, you
                       cannot first roll over after-tax contributions to a traditional IRA and then roll over
                       that amount into an employer plan.


The following types of Plan payments cannot be rolled over:

       Loans Treated The amount of a plan loan that becomes a taxable deemed distribution because
     as Distributions of a default cannot be rolled over. However, a loan-offset amount is eligible
                      for rollover, as discussed in Part II. Ask the Plan Administrator of this Plan if
                      distribution of your loan qualifies for rollover treatment.
             Required In the year you attain age 70 1⁄2 or separate from service, whichever is later, a
             Minimum certain portion of your payment cannot be rolled over because it is a “required
            Payments minimum payment” that must be paid to you.
           Corrective A distribution that is made to correct a failed nondiscrimination test or because
        Distributions legal limits on certain contributions were exceeded cannot be rolled over.



The Plan Administrator should be able to tell you if your payment includes amounts that cannot be
rolled over.


Part II — Direct Rollover
A direct rollover is a direct payment of the amount of your Plan benefits to a traditional IRA or an
eligible employer plan that will accept it. You can choose a direct rollover of all or any portion of your
payment that is an eligible rollover distribution, as described in Part I above. You are not taxed on any
taxable portion of your payment for which you choose a direct rollover until you later take it out of the
traditional IRA or eligible employer plan. In addition, no income tax withholding is required for any
taxable portion of your Plan benefits for which you choose a direct rollover.




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Direct Rollover to a Traditional IRA. You can open a traditional IRA to receive the direct rollover. If
you choose to have your payment made directly to a traditional IRA, contact an IRA sponsor (usually
a financial institution) to find out how to have your payment made payable for a direct rollover to a
traditional IRA at that institution. If you are unsure of how to invest your money, you can leave it in
the PSA until the end of the year in which you attain age 70½ or separate from service, whichever
is later, or temporarily establish a traditional IRA to receive the payment. However, in choosing a
traditional IRA, you may wish to make sure that the traditional IRA you choose will allow you to move
all or a part of your payment to another traditional IRA or qualified employer plan at a later date,
without penalties or other limitations. See IRS Publication 590, Individual Retirement Arrangements,
for more information on traditional IRAs (including limits on how often you can roll over between
IRAs).

Direct Rollover to a Plan. If a new employer that has an eligible employer plan employs you, and
you want a direct rollover to that plan, ask the plan administrator of that plan whether it will accept
your rollover. An eligible employer plan is not legally required to accept a rollover. Even if your new
employer’s plan does not accept a rollover, you can choose a direct rollover to a traditional IRA. If the
employer plan accepts your rollover, the plan may provide restrictions on the circumstances under
which you may later receive a distribution of the rollover amount or may require spousal consent to
any subsequent distribution. Check with the plan administrator of that plan before making your
decision.

Direct Rollover of a Series of Payments. If you receive a payment that can be rolled over to a
traditional IRA or an eligible employer plan that will accept it, and it is paid in a series of payments
for less than 10 years, your choice to make or not make a direct rollover for a payment will apply to all
later payments in the series until you change your election. You are free to change your election for
any later payment in the series.

Change in Tax Treatment Resulting from a Direct Rollover. The tax treatment of any payment from
the eligible employer plan or traditional IRA receiving your direct rollover might be different than if
you received your benefit in a taxable distribution directly from the Plan. For example, if you were
born before January 1, 1936, you might be entitled to 10-year averaging or capital gain treatment,
as explained below. However, if you have your benefit rolled over to a section 403(b) tax-sheltered
annuity, a governmental 457 plan, or a traditional IRA in a direct rollover, your benefit will no longer
be eligible for that special treatment. See the sections below entitled “Additional 10 Percent Tax If
You Are Under Age 59½” and “Special Tax Treatment If You Were Born Before January 1, 1936.”


Part III — Payment Paid to You
If your payment can be rolled over (as described in Part I) and the payment is made to you in cash, it
is subject to 20 percent federal income tax withholding on the taxable portion (state tax withholding
may also apply). The payment is taxed in the year you receive it unless, within 60 days, you roll it over
to a traditional IRA or an eligible employer plan that accepts rollovers. If you do not roll it over, special
tax rules may apply.




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Income Tax Withholding
Mandatory Withholding. If any portion of your payment can be rolled over under Part I above and
you do not elect to make a direct rollover, the Plan is required by law to withhold 20 percent of the
taxable amount (state tax withholding may also apply). This amount is sent to the IRS as federal
income tax withholding. For example, if you can roll over a taxable payment of $10,000, only $8,000
will be paid to you because the Plan must withhold $2,000 as income tax. However, when you prepare
your income tax return for the year, unless you make a rollover within 60 days (see “60-Day Rollover
Option” below), you must report the full $10,000 as a taxable payment from the Plan. You must report
the $2,000 as tax withheld, and it will be credited against any income tax you owe for the year. There
will be no income tax withholding if your payments for the year are less than $200.

Voluntary Withholding. If any portion of your payment is taxable but cannot be rolled over under Part
I above, the mandatory withholding rules described above do not apply. In this case, you may elect
not to have withholding apply to that portion. If you do nothing, 10 percent will be taken out of this
portion of your payment for federal income tax withholding. To elect out of withholding, the Plan
Administrator will provide you with the appropriate election form and related information.

60-Day Rollover Option. If you receive a payment that can be rolled over under Part I above, you can
still decide to roll over all or part of it to a traditional IRA or to an eligible employer plan that accepts
rollovers. If you decide to roll over, you must contribute the amount of the payment you received to
a traditional IRA or eligible employer plan within 60 days after you receive the payment. The portion
of your payment that is rolled over will not be taxed until you take it out of the traditional IRA or the
eligible employer plan.

You can roll over up to 100 percent of your payment that can be rolled over under Part I above,
including an amount equal to the 20 percent of the taxable portion that was withheld. If you choose
to roll over 100 percent, you must find other money within the 60-day period to contribute to the
traditional IRA or the eligible employer plan to replace the 20 percent that was withheld for federal
withholding taxes (plus the amount that was withheld for state withholding taxes, if any). On the
other hand, if you roll over only the 80 percent of the taxable portion that you received, you will be
taxed on the 20 percent that was withheld.

        Example: The taxable portion of your payment that can be rolled over under Part I
        above is $10,000, and you choose to have it paid to you. You will receive $8,000, and
        $2,000 will be sent to the IRS as federal income tax withholding. Within 60 days after
        receiving the $8,000, you may roll over the entire $10,000 to a traditional IRA or an
        eligible employer plan. To do this, you roll over the $8,000 you received from the Plan,
        and you will have to find $2,000 from other sources (your savings, a loan, etc.). In this
        case, the entire $10,000 is not taxed until you take it out of the traditional IRA or an
        eligible employer plan. If you roll over the entire $10,000, when you file your income
        tax return you may get a refund of part or all of the $2,000 withheld. If, on the other
        hand, you roll over only $8,000, the $2,000 you did not roll over is taxed in the year




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        it was withheld. When you file your income tax return, you may get a refund of part
        of the $2,000 withheld. (However, any refund is likely to be larger if you roll over the
        entire $10,000.)

Additional 10 Percent Tax If You Are Under Age 59½. If you receive a payment before you reach age
59½ and you do not roll it over, then, in addition to the regular income tax, you may have to pay an
extra tax equal to 10 percent of the taxable portion of the payment. The additional 10 percent tax
generally does not apply to payments that:

        1. Are paid after you separate from service with OPC and all Affiliates during or
           after the year you reach age 55;
        2. Are paid because you separate from service due to disability (as defined
           under the Plan);
        3. Are paid in the form of an annuity;
        4. Are paid directly to the government to satisfy a federal tax levy;
        5. Are paid to a beneficiary in the event of the participant’s death;
        6. Are paid to an alternate payee under a qualified domestic relations order; or
        7. Do not exceed the amount of your deductible medical expenses.


See IRS Form 5329 for more information on the additional 10 percent tax.

Special Tax Treatment If You Were Born Before January 1, 1936. If you receive a payment from the
PSA that can be rolled over under Part I and you do not roll it over to a traditional IRA or an eligible
employer plan, the taxable portion of the payment will be taxed in the year you receive it. However,
if the payment qualifies as a “lump sum distribution,” it may be eligible for special tax treatment.
(See “Employer Stock,” below.) A lump sum distribution is a payment, within one year, of your entire
balance under the Plan that is payable to you after you have reached age 59½ (or because you have
separated from service with OPC and all Affiliates after you have reached age 59½ or have become
disabled as defined under the Plan). For a payment to be treated as a lump sum distribution, you
must have been a participant in the Plan for at least five years before the year in which you received
the distribution. The special tax treatment for lump sum distributions that may be available to you is
described below.

             10-Year If you receive a lump sum distribution and you were born before January 1, 1936,
           Averaging you can make a one-time election to figure the tax on the payment by using “10-
                     year averaging” (using 1986 tax rates). 10-year averaging often reduces the tax
                     you owe.
         Capital Gain If you receive a lump sum distribution and you were born before January 1, 1936,
          Treatment and you were a participant in the Plan before 1974, you may elect to have the part
                      of your payment that is attributable to your pre-1974 participation in the Plan
                      taxed as long-term capital gain at a rate of 20 percent.




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There are other limits on the special tax treatment for lump sum distributions. For example, you
can generally elect this special tax treatment only once in your lifetime, and the election applies
to all lump sum distributions that you receive in that same year. You may not elect this special tax
treatment if you rolled amounts into this Plan from a 403(b) tax-sheltered annuity contract or from
an IRA not originally attributable to a qualified employer plan. If you have previously rolled over a
distribution from this Plan (or certain other similar plans of the employer), you cannot use this special
averaging treatment for later payments from the Plan. If you roll over your payment to a traditional
IRA, governmental 457 plan, or 403(b) tax-sheltered annuity, you will not be able to use special tax
treatment for later payments from that IRA, plan, or annuity. Also, if you roll over only a portion
of your payment to a traditional IRA, governmental 457 plan, or 403(b) tax-sheltered annuity, this
special tax treatment is not available for the rest of the payment. See IRS Form 4972 for additional
information on lump sum distributions and how you elect the special tax treatment.

Employer Stock. There is a special rule for a payment from the PSA that includes Oxy Stock paid
from the Oxy Stock Fund. To use this special rule, 1) the payment must qualify as a lump sum
distribution, as described above, except that you do not need five years of plan participation, or
2) the Oxy Stock included in the payment must be attributable to “after-tax” employee contributions,
if any. Under this special rule, you may have the option of not paying tax on the “net unrealized
appreciation” of the stock until you sell the stock. Net unrealized appreciation generally is the
increase in the value of the Oxy Stock while it was held under the PSA’s Oxy Stock Fund. For example,
if the average cost basis of the shares purchased under your PSA’s Oxy Stock Fund account while you
were a participant is $1,000 and the market value of those shares is $1,200 when they were issued to
you, you would not have to pay tax on the $200 increase in value (the net unrealized appreciation)
until you later sold the stock.

You may instead elect not to have the special rule apply to the net unrealized appreciation. In this
case, your net unrealized appreciation will be taxed in the year you receive the stock, unless you roll
over the stock. The stock can be rolled over to a traditional IRA or another eligible employer plan (if
the employer plan accepts a rollover in the form of Oxy Stock), either in a direct rollover or a rollover
that you make yourself. Generally, you will no longer be able to use the special rule for net unrealized
appreciation if you roll the stock over to a traditional IRA or another eligible employer plan.

If you receive only Oxy Stock shares in a payment that can be rolled over, no amount will be
withheld from the payment. If you receive cash and Oxy Stock shares as part of a payment that can
be rolled over, the 20 percent withholding amount will be based on the entire taxable amount paid
to you (including the value of the stock determined by excluding the net unrealized appreciation).
However, the amount withheld will be limited to the cash portion of your payment, but you will
still be responsible for any additional taxes that you owe. Oxy Stock shares will not be sold to satisfy
withholding. If you receive stock in a payment that qualifies as a lump sum distribution, the special
tax treatment for lump sum distributions described above (such as 10-year averaging) may also apply.
See IRS Form 4972 for additional information on these rules.




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Repayment of PSA Loans. If your employment ends and you have an outstanding PSA loan, your
outstanding loan balance will reduce (or “offset”) your payment from the PSA by the amount of the
outstanding loan you have not repaid. The amount of your loan offset is treated as a distribution to
you at the time of the offset and will be taxed unless you roll over an amount equal to the amount of
your loan offset to another qualified employer plan or a traditional IRA within 60 days of the date of
the offset. If the amount of your loan offset is the only amount you receive or are treated as having
received, no amount will be withheld from it, but you will still be responsible for any additional
taxes that you owe. If you receive other cash payments from the PSA, the 20 percent withholding
amount will be based on the entire amount paid to you, including the amount of the loan offset. The
amount withheld will be limited to the amount of cash paid to you (other than the portion of the
payment paid in shares of Oxy Stock). The amount of a defaulted PSA loan that is a taxable deemed
distribution cannot be rolled over.


Part IV — Surviving Spouses, Alternate Payees, and Other Beneficiaries
In general, the rules summarized above that apply to payments to employees also apply to payments
to surviving spouses of employees and to spouses or former spouses who are “alternate payees.” You
are an alternate payee if your interest in the PSA results from a “qualified domestic relations order,”
which is an order issued by a court, usually in connection with a divorce or legal separation.

If you are a surviving spouse or a spousal alternate payee, you may choose to have a payment that
can be rolled over, as described in Part I above, paid in a direct rollover to a traditional IRA or to an
eligible employer plan or paid to you. If you have the payment paid to you, you can keep it or roll it
over yourself to a traditional IRA or to an eligible employer plan. Thus, you have the same choices as
the employee.

If you are a beneficiary other than a surviving spouse or a spousal alternate payee (that is, you are
a nonspouse beneficiary), the rules summarized above generally do not apply to you. PSA does not
provide for a direct rollover of your distribution to an inherited IRA. Also, the voluntary withholding
rules, rather than the mandatory withholding rules, described above will apply to your distribution. As
a nonspouse beneficiary, the distribution paid to you cannot later be rolled over.

If you are a surviving spouse, an alternate payee, or another beneficiary, your payment is generally not
subject to the additional 10 percent tax described in Part III above, even if you are younger than age
59½.

If you are a surviving spouse, an alternate payee, or another beneficiary, you may be able to use the
special tax treatment for lump sum distributions and the special rule for PSA payments that include
Oxy Stock shares, as described in Part III above. If you receive a payment because of the employee’s
death, you may be able to treat the payment as a lump sum distribution if the employee met the
appropriate age requirements, whether or not the employee had 5 years of participation in the Plan.




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How to Obtain Additional Information
This notice summarizes only the federal (not state or local) tax rules that might apply to your
payment. The rules described above are complex and contain many conditions and exceptions that
are not included in this notice. Therefore, you may want to consult with a professional tax advisor
before you take a payment of your benefits from the PSA. Also, you can find more specific information
on the tax treatment of payments from qualified employer plans in IRS Publication 575, Pension and
Annuity Income, and IRS Publication 590, Individual Retirement Arrangements. These publications
are available from your local IRS office, on the IRS’s Internet website at www .irs .gov, or by calling
1-800-TAX-FORMS.


Notice of State Tax Information
The portion of a Plan payment that represents a return of nontaxable after-tax contributions is not
taxable. However, the taxable portion of a PSA payment in excess of $200 may be subject to state
income taxation except if you reside in AK, FL, NV, NH, SD, TN, TX, WA or WY. Consult a tax
advisor or your state taxing authority for more information about the state income tax requirements
where you reside. If you roll over nontaxable after-tax contributions, also determine if your state of
residence permits you to defer paying state income tax on the earnings on after-tax contributions that
you elect to roll over.

In certain states, a taxable Plan payment in excess of $200 that is not directly rolled over to a
traditional IRA or another employer’s qualified plan is also subject to state income tax withholding
(SITW). If you reside in AR, DE, IA, KS, MD, ME, MA, NC, NE, OK, VT or VA, applicable SITW
is mandatory and will automatically be withheld from the taxable portion of a payment paid to you.
If you reside in AL, AZ, CA, CO, CT, DC, GA, HI, ID, IL, IN, KY, LA, MI, MN, MO, MS, MT,
ND, NJ, NM, NY, OH, OR, PA, PR, RI, SC, UT, WV or WI, the withholding of applicable SITW is
voluntary.

Because state tax regulations change from time to time, consult with your tax advisor or the state
taxing authority in your state of residence for information about the most current state tax regulations
that may apply to a payment you receive from the PSA.




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DOCUMENT INFO