Elements Newsletter

2008 Open Enrollment Is Fast Approaching!

It’s almost time for 2008 Open Enrollment — your opportunity to make changes to your Chevron Phillips Chemical benefits for the coming year. During the October 22 – November 2 enrollment period, you’ll be able to:

• Change your medical or dental coverage,
• Enroll in the Health Care and/or Dependent Care flexible spending accounts,
• Change your life, accident and/or long-term disability coverage, and
• Add, change or discontinue coverage for you and/or your dependents.

If you’re not currently enrolled for long-term disability (LTD) coverage, there will be a special one-time opportunity to enroll in LTD for next year without providing Statement of Health (SOH). So please start thinking now about what the 2008 benefit changes might mean for you and your family, and whether you want to make any changes to your benefit coverage, so you’ll be ready when enrollment comes around!

WHAT’S CHANGING FOR 2008

Chevron Phillips Chemical has made minimal changes to its benefit plan designs for the new plan year. And we’ve been able to add some enhancements to the medical and dental plans. Here’s a brief overview of what’s new for 2008. More information will be found in your 2008 Open Enrollment Guide.

• Premium rates will increase about 2% for the medical plan and 4% for the dental plan.
• Premium rates for employee supplemental life insurance, supplemental accident insurance, and voluntary long-term disability have been locked in at current levels for 2008 and 2009 under a new two-year contract. However, spouse supplemental life insurance rates will be increasing about 45% due to poor experience in this classification.
• There will be a special one-time enrollment opportunity for you to enroll in LTD without providing a statement of good health — which is usually required if you didn’t enroll in LTD when you first became eligible. The LTD plan can provide replacement income of up to 60% of pay (combined with other sources) if you’re disabled due to illness or injury for longer than six months. So, if you’re not already enrolled, you may want to take advantage of this special window of opportunity to enroll in LTD.
• We’re adding several enhancements to the medical plan. You’ll have access to:
• A network of Walk-in Medical Clinics.
• A new Aetna network of designated specialists called the Aexcel Performance Network.
• Diabetes America — Special facilities that provide education and treatment to help you manage your diabetes.
• The Aetna Employee Assistance Program — Aetna will be replacing CIGNA Behavioral Health as the vendor for EAP and behavioral health services (benefits won’t change).
• The following changes will also apply to the medical plan:
• A new name for vision benefits — Aetna Vision DiscountsSM replaces Vision One^® (benefits won’t change).
• Prescription Drug Program — the Mail-Order Non-Preferred Brand Name copay increases from $115 to $120 (other copays don’t change).
• The Step Therapy Prescription Drug Program — which was introduced in 2007 for gastrointestinal drugs — is being expanded to cover all maintenance drugs.
• The Zero Dollar Copay Generic Drug Program which was introduced in 2007 will continue — it can eliminate your copays on six months of generic drugs, if you qualify.
• A new Prior Authorization Drug Program will require people who take certain prescription drugs for psoriasis, migraines or rheumatoid arthritis to have their physicians provide a statement of medical necessity for these drugs.
• Benefits under the Comprehensive Dental Plan have been improved:
• The plan year maximum will increase from $1,250 to $1,500, and
• The orthodontia lifetime maximum will increase from $1,250 to $1,500.

THE 2008 OPEN ENROLLMENT PROCESS

Keep an eye out for your 2008 Open Enrollment Packet, which will be mailed to your home during the week of October 8, 2007. The packet summarizes your coverage options under Chevron Phillips Chemical’s benefit plans, provides more details on benefit plan changes for 2008, and explains how to enroll online or over the phone through the Chevron Phillips Benefits Service Center.

The Importance of Long-Term Disability Insurance

Did you know your chances of being disabled for longer than three months are far greater than your chances of dying prematurely? Many American workers have developed false senses of security that nothing will happen to them, and often rely solely on their basic benefits packages to meet their insurance and investment needs.

In reality, as many as 52% of Americans are living paycheck to paycheck and are not adequately protecting their most important asset: their ability to earn income.

While you may be able to financially sustain a short-term disability, a long-term disability can result in financial disaster for you and your family.

Not having insurance against the possibility of injury or illness is taking a massive financial risk. All the retirement planning, automatic savings, best asset allocation, best funds and best returns won’t count for anything if you have to raid your retirement savings to make up for loss income due to a disability. So before you worry about how your portfolio is doing, you may want to seriously consider getting long-term disability insurance, even if you think you’re too young for it.

Doctors buy malpractice insurance, we all have auto insurance, fire insurance, home insurance and life insurance. Why? Because in the event that something happens, the costs of recovery are very high. The same goes for long-term disability insurance. If you don’t have it now, consider getting it as part of your financial hedging strategy.

And to make it easier than ever to get long-term disability insurance, Chevron Phillips Chemical is holding a special enrollment opportunity during Open Enrollment this year. During this time, you can enroll without having to submit Statement of Health. That means no more excuses — you can start protecting your ability to earn income hassle-free. Watch for more details in your Open Enrollment packet!

Aetna Aexcel^®: Specialty Care That’s Affordable

We’ve all heard the old saying, “You get what you pay for.” Well, with Aetna Aexcel^®-designated specialists, you don’t get what you pay for … you get more. Whether you have a heart condition, require knee surgery or are in need of an obstetrician, Aetna Aexcel^® has a specialist with the skill and experience to meet your needs, at a price you can afford.

With Aetna Aexcel^®, you have access to specialists in 12 areas of critical care:

• Cardiology
• Cardiothoracic Surgery
• Gastroenterology
• General Surgery
• Obstetrics and Gynecology
• Orthopedics
• Otolaryngology/ENT
• Neurology
• Neurosurgery
• Plastic Surgery
• Urology
• Vascular Surgery

To receive an Aexcel designation from Aetna, a physician must meet rigorous criteria for clinical performance and cost-effectiveness. Aetna reviews key factors such as 30-day hospital readmission rate, rates of health complications during hospital care and other specialty-specific treatment measures shown to improve outcomes. Specialists who demonstrate excellent clinical performance are then rated by Aetna based on their cost efficiency.

Aetna also measures these individuals on their overall performance based on recommended guidelines of nationally respected professional organizations, such as the American College of Obstetricians and Gynecologists and the Society of Thoracic Surgeons. Only those specialists who demonstrate the highest level of quality, cost-effective care receive the Aexcel designation from Aetna.

Accessing an Aetna Aexcel^®-designated specialist is easy — no referral is needed, which means you save on primary care office visits. To locate an Aetna Aexcel®-designated specialist, just look for the doctors with a star next to their names in DocFind^®, Aetna’s online directory (www.aetna.com/docfind) or in your printed directory.

So the next time you need specialty care, consider an Aetna Aexcel^®-designated specialist. You’ll have access to the very best care, from a top-performing physician, at a price that’s within your means.

Walk-In Clinics Now Covered By Aetna

Imagine high-quality, affordable health care for routine medical issues and preventive care with no waiting and no appointments.

Imagine medications ordered on the spot with a pharmacy available just a few steps away. Imagine specially trained nurse practitioners who are so professional and caring that 98% of patients rate their service as outstanding.

Oh — and generally, facilities are conveniently located inside stores that you already shop in. Sound like a fantasy? It’s not. It’s a walk-in clinic.

Open 7 days a week, with extended hours, most of the walk-in clinics offer Get Well services for adults and children 2 years and older. Nurse practitioners treat common medical conditions, such as colds, coughs, sinus infections, flu, ear infections, urinary tract infections, and skin rashes. Each Get Well visit is only $35.

Stay Well services — such as flu shots; cholesterol, glucose, and other screenings; physical exams and vaccinations — are also provided to help you maintain your health. For a list of participating network walk-in clinics, visit DocFind^® at www.aetna.com.

Diabetes America — A New Diabetes Wellness and Management Resource

Starting January 1, 2008, Phillips Chemical employees enrolled in either medical plan option will have access to Diabetes America, an established network of diabetes care and management centers across the state of Texas. Diabetes America offers a variety of personalized treatment and educational programs, including medical treatment, diabetes education, nutritional counseling, and exercise and lifestyle instruction. When you visit a Diabetes America treatment center, you’re only responsible for a $10 copay for the services you receive.

ABOUT DIABETES AMERICA

Diabetes America was founded in 2004 as Diabetes Centers of America, but changed its name earlier this year to reflect its broader range of services. The organization has grown from one original center in Houston to twelve centers across Texas in the Houston, Dallas/Fort Worth, Corpus Christi and San Antonio areas. Each center functions as a “one-stop-shop” for individuals with diabetes, offering a team of diabetes doctors, nutritionists and educators under one roof. In addition to center-based medical care and education, available services include a full-service on-site pharmacy to fulfill patient’s prescription needs, a 24/7 telephone hotline service, and an advisory service that focuses on healthy lifestyles and non-surgical weight management.

WHO CAN BENEFIT

Whether you’ve recently been diagnosed with diabetes, have had diabetes for a while and have ongoing diabetes management needs, or need preventive care because you’ve been diagnosed as pre-diabetic, Diabetes America can help. The expert staff at Diabetes America work with your current physician to develop a personalized diabetes care plan that compliments and reinforces the plan you may already have from your treating physician — they don’t replace your personal doctor.

For more information about Diabetes America and the services it offers, visit www.diabetesamerica.com. Beginning January 1, you can also schedule appointments online or by calling 1-866-MY-DIABETES (1-866-693-4223).

TREATMENT AND EDUCATION PROGRAMS

The programs available through Diabetes America include:

• Medical care
• Development of personalized diabetes management plans (based on physical exams, lab work and needs assessments)
• Blood glucose monitoring and goal setting
• Medication management
• Insulin pump therapy
• Complications prevention
• Current diabetes research
• Diabetes education
• Individual sessions, group classes, seminars and computer-assisted learning
• Administered by certified diabetes educators, nurses, registered dieticians and other health care professionals
• Nutritional counseling
• Meal planning
• Weight management
• Eating pattern management
• Exercise and lifestyle instruction
• Daily activity and healthy lifestyle classes
• Personal hygiene and foot care
• Coping with diabetes emotionally and mentally
• Sick day management

Diabetes America maintains rigorous standards for all its programs. The care it provides conforms to diabetes education programs recognized by the American Diabetes Association and incorporates guidelines from the American Association of Clinical Endocrinologists and American Association of Diabetes Educators.

Vision One^® Is Now Aetna Vision^SM Discounts

Just a reminder that Aetna is changing the name of its vision discount program from Vision One^® to Aetna Vision^SM Discounts. We want to reiterate this recent change in case you see the old program name in Aetna’s brochures and flyers over the next few months.

Although the name of Aetna’s discount program has changed, you’ll be pleased to know that the program’s great savings and service are still the same. Available at no extra cost to Aetna members, Aetna Vision^SM Discounts offers you special discounts on eyeglasses, contact lenses and solutions, LASIK, and more, at participating service locations nationwide.

For more detail on Aetna Vision^SM Discounts, go to www.aetna.com/docfind or call 1-800-793-8616.

Did You Know?

• Of the 50 million Americans who have high blood pressure (the leading contributor to heart disease) 35 percent don’t know they have it. High blood pressure is easily detectable and usually controllable.
• Almost 1 out of every 2.4 deaths in the USA result from Cardiovascular Disease (CVD).
• Since 1900, CVD has been the leading cause of death in every year but one — 1918.
• About every 29 seconds an American will suffer a coronary event.
• About every 60 seconds, someone dies from one.
• At least 250,000 people die of heart attacks each year before they reach a hospital.
• Half of all heart attack victims wait more than two hours before getting help.
• CVD is the cause of more deaths than the next 7 causes of death put together.
• It is a myth that heart disease is a man’s disease. In fact, cardiovascular diseases are the number one killer of women (and men). These diseases currently claim the lives of more than a half a million females every year — more than the next 16 causes of death put together.
• In 57 percent of men and 64 percent of women who died suddenly from CVD, there were no previous symptoms of the disease.
• The cost of CVD in 1999 was estimated at $286.5 billion — an increase of about $12 billion from the previous year.
• Stroke killed 159,942 people in 1996.
• On average, someone in the US suffers a stroke every 53 seconds.
• On average, someone dies from stroke every 3 minutes 20 seconds. Are you at risk for heart disease? You can find out by using the Risk Assessment Tool at www.americanheart.org.

Health for Life

Tips For Better Sleep

Waking up “on the wrong side of the bed” is a nice way to say a person didn’t sleep very well. Have your sleep habits hit the wall? Sure, poor sleep affects your mood negatively. But it also hampers your overall well-being.

From premature aging to a compromised immune system, the side-effects of sleepless nights can add up. Getting a good night’s sleep is high on the list of things you can do to boost your health and fitness levels. Sleep is crucial for optimum immunity and your ability to manage stress throughout the day.

10 TIPS FOR A GOOD NIGHT’S SLEEP

1. Get regular exposure to daylight, especially in the afternoon (research shows that night-shift workers can improve daytime sleep by working under bright lights).
2. Prior to bedtime, use dimmer switches or turn off a few lamps to lower the lighting in your home or apartment.
3. Don’t allow yourself to nod off on the sofa. When you start feeling drowsy, get up and go to bed.
4. Use your bedroom for sleep. Don’t make it a satellite office, study hall or entertainment center.
5. When you can’t sleep, try using imagery and thoughts to relax. Deep-breathing techniques also work.
6. If you haven’t dropped off within about 20 minutes, get out of bed and read or engage in some other quiet activity. Go back to bed when you get sleepy.
7. Put the alarm clock out of sight. Clock watching doesn’t help you sleep — it may even keep you awake!
8. Sleep specialists recommend lying on your back or on your side, not your stomach.
9. Get Fido and Fluffy their own comfy beds. In a study conducted by the Mayo Clinic, half the people surveyed had their sleep disturbed by pets.
10. Only take over-the-counter sleep aids as an occasional emergency measure. You can build up a tolerance to them very quickly. If you find yourself relying on them, see your doctor.

Let’s Talk Money

Compensation plays an important role in attracting and retaining employees, which is why Chevron Phillips Chemical strives to offer total compensation packages that are competitive within the petrochemical industry. To do so, the company participates in several annual salary surveys and benchmarks itself against its closest competitors.

“Compensation benchmarking offers numerous benefits,” explained Steve Rugeley, Compensation Manager.

• “It allows management to compare individual positions relative to our competitors,
• It provides the data necessary for management to review and adjust salary grades and structures, and
• It helps set the scale for how high a job should be graded.”

“Because no single data source will ever perfectly match Chevron Phillips Chemical’s offerings, we continue to benchmark our total compensation package each year and make adjustments as market conditions warrant,” said Rugeley.

“Chevron Phillips Chemical’s compensation structure is built on a ‘pay for performance’ philosophy, with an emphasis on the importance of teamwork in achieving our business objectives. Each employee’s total cash compensation includes a base salary or wage, in addition to variable pay that is dependent on individual productivity and the success of the company. Stronger performances equal larger variable payouts — such as EIP bonuses, profit sharing and matching 401(k) contributions,” Norm Berkley, HR Manager, explained.

At Chevron Phillips Chemical, total compensation also includes all benefits and services paid for on the employee’s behalf by the company. Paid benefits include:

• Pension contributions,
• 401(k) savings match,
• Medical and dental insurance,
• Life insurance, and
• Retiree medical account contributions.

Medical insurance, life insurance, work/life programs and retirement benefits are extremely important and valuable parts of any total compensation package. So valuable in fact, that factoring in Chevron Phillips Chemical’s benefits package increases each employee’s total compensation by 35%!

Performance Management Goals — Are You on Track?

Earlier this year, you met with your supervisor and outlined your Performance Management (PM) goals for 2007, and you were most likely geared up and ready to go. Now months later, we hope that your PM goals have not fallen off your radar. Long-term enthusiasm can be hard to maintain when you’re busy.

Achieving your PM goals takes time and planning. Waiting until the end of the year to get started will only add to your stress level and diminish the quality of your achievement. As we head into the fourth quarter, we encourage you to continue working through your PM goals and documenting them online if you have not already done so.

Take small steps if necessary, because even small steps, if steady, will get you there. It’s easy to fall into a rut, our enthusiasm lagging, because we’re waiting for that “big reward” to push us forward. But the best way to get your enthusiasm back is to start with the minor successes — the low hanging fruit. Start small and the momentum will pick up naturally. As everyone grows individually, the company grows stronger collectively — so keep moving forward!

Note: The PM process applies to salaried US $ employee and expats. Other employees should check with their HR Business Partner to see what local processes are applicable to their location. To revisit your PM goals, go to the PM Web site, found on nSight under Departments > Human Resources > Performance Management Process. Once on the PM home page, click on “Online Tool” in the left-hand navigation menu.

Middle East Staffing Plans and Challenges

Much of Chevron Phillips Chemical’s future growth is tied to joint venture expansion projects in the Middle East. The three biggest projects include Jubail Chevron Phillips (JCP) in Jubail, Saudi Arabia, Q-Chem II in Qatar, and National Chevron Phillips (NCP) in Saudi Arabia.

The JCP Project includes the construction and integration of new ethylene, ethylbenzene and styrene monomer units within the existing S-Chem facility. Currently, there are about 50 Chevron Phillips Chemical employees and nearly 5,000 contractors working to ready this facility for startup by year end.

In Qatar, the Q-Chem II derivatives units, Ras Lafan Olefins Company (RLOC) ethylene units, and a 120 km pipeline are being constructed and integrated with the existing Q-Chem olefins and polyolefins facility. Currently, there are about 60 Chevron Phillips Chemical employees working on this effort. A few employees are still in Milan, Italy, while the rest are already in Qatar working on the construction of the new units, maintaining current production and integrating the new units for an anticipated third quarter 2008 start-up.

The National Chevron Phillips (NCP) project includes approximately 30 Chevron Phillips Chemical employees working to develop feed and product design proposals. If approved, NCP will be the company’s largest Middle East expansion effort to date. At its peak, it is anticipated that NCP will involve approximately 90 Chevron Phillips Chemical operations, maintenance and project employees assigned in Saudi Arabia and an additional 70 short-term Chevron Phillips Chemical employees for startup assistance. In total, there could be as many as 7,000 engineering, procurement, and construction contractors at the peak of construction. The current target for start-up is first quarter 2011.

“We are currently filling short-term startup assistance assignments for JCP and I expect we will have similar needs for Q-Chem II and the RLOC Units toward the middle of 2008,” Bruce Guy, Middle East Recruiting Manager, explained.

“Right now our biggest recruiting challenge is preparing for the possibility of an approved NCP project. We will need the majority of our Chevron Phillips Chemical employees working on NCP in Houston to transition to Saudi Arabia for the commissioning, start-up and continued operations. There are a select number of employees that will be needed for assignments in the detail design offices, which could be in international locations like Paris, France, Milan, Italy, Seoul, South Korea, Madrid, Spain or Yokagawa, Japan. After that, they too will transition to Saudi Arabia for construction and startup,” Guy explained.

The majority of the open positions will be for first line operations employees with knowledge in the specific technology and leadership/supervisory skills. There will also be a need for reliability/maintenance specialists/supervisors, process engineers, HSE professionals and more.

If you have a safety conscious attitude, are willing to do whatever it takes to get the job done right, learn quickly, enjoy training others and are flexible enough to adapt to unique living and working conditions — there are lots of great opportunities waiting for you in the Middle East. About 90 of them to be exact! Contact Bruce Guy at GUYVB@ChevronPhillipsChemical.com today to find out more.

Visitor Safety Videos in LMS!

If you’ve visited one of the company’s other facilities recently, chances are that you’ve seen a site safety video. On a day when your schedule is tight, taking time to watch the video might not have been factored into your timeline. You might even have wished you could just skip it.

Unfortunately, skipping a plant’s Visitor Safety Video is not an option — SAFETY is too important! However, watching it at a more convenient time in advance of a planned visit IS now an option for employees.

Safety videos for twelve facilities have been made available for viewing before your next trip. Simply log into the Learning Management System (LMS) > Browse the course catalog > click the “Fire and Safety” subject areas > then enroll in the course for the facility you intend to visit.

Each video is accompanied by a short, multiple-choice quiz. Once you’ve successfully answered all five questions, print the course completion certificate. Present the certificate to the security desk upon arrival to the facility as proof you’ve already seen the video. Any additional check-in procedures remain unchanged.

As with viewing Safety Videos on-site, completion of the online course remains an annual requirement on a rolling-year basis. If you have any questions related to these courses, please contact your local training administrator.