Elements Newsletter

Reminder: The New Roth 401(k) Option for the Savings Plan

Did you remember that the Chevron Phillips Chemical 401(k) Savings and Profit Sharing Plan has a new contribution option for 2008? You can sign up for this option beginning December 20, 2007.

With the Roth 401(k) option, you make your contribution on an after-tax basis, so you don’t get an upfront income tax saving like you do with before-tax contributions. But you’ll likely get a larger tax saving later on, when you withdraw the funds for retirement — because both your contributions and the accumulated earnings on them will be tax-free, as long as you’re at least age 59½ and have held your Roth 401(k) account for five years or longer.

In the Savings Plan, you can choose to make before-tax contributions (with immediate tax savings), Roth 401(k) after-tax contributions (with deferred tax savings) or a combination of the two, up to plan and legal limits. And the first 6% of your combined before-tax and Roth 401(k) after-tax contributions are matched by the company at 75¢ on the dollar — it’s like getting a 75% return on your investment as soon as you contribute! The company match accumulates in a separate pretax account and will be taxed as ordinary income at the time of withdrawal. (You can also contribute to the Savings Plan on an after-tax basis through the Medical Savings Account, although those contributions don’t receive the company match.)

HOW TO PROCEED

If you want more information — or are ready to enroll in the new Roth 401(k) contribution option — you can call the Chevron Phillips Chemical Pension & Savings Service Center at 1-866-771-5225, or log on to Fidelity NetBenefits® at http://www.netbenefits.com. Your new Roth 401(k) contributions will start in January, 2008.

Interest Rate Change for the Chevron Phillips Chemical Retirement Plan

Chevron Phillips Chemical is changing the way interest rates are determined for the calculation of lump sum benefits for the Chevron Phillips Chemical Retirement Plan as a way to reduce volatility.

Currently, to determine the applicable interest rate to calculate a lump sum retirement benefit, we use a four month look-back and the rate changes monthly. For example: the interest rate currently used for lump sum benefits in December 2007 is based on the applicable 30-year Treasury rate from August 2007. Beginning in July 2008, the lump sum interest rate will still involve a four month look-back, but will only change quarterly.

For example: the July, August and September 2008 interest rates for lump sum benefits will be the applicable 30-year Treasury rate for March 2008. Because the interest rate used for lump sum benefits will only change quarterly, any retirement estimates that you make will more closely mirror the benefit amount you’ll receive if the estimate is made within ninety days of your proposed retirement date. We will begin displaying the current quarterly lump sum interest rate on Benefitium.com starting in March 2008. Watch for the announcement!

2008 401(k) Contribution Limits

In 2008, you’ll be able to contribute up to $15,500 (combined maximum) in pre-tax and/or Roth contributions to the 401(k) plan, and if you’re 50 or older, you can contribute up to an additional $5,000. Regardless of your age, it’s always a good time to review your investment choices to ensure they align with your savings and retirement goals.

Important EAP Reminder

Effective January 1, 2008, Aetna will be replacing CIGNA Behavioral Health as the vendor for EAP and behavioral health services. And although benefits won’t change, the contact information will.

So starting January 1, 2008, Chevron Phillips Chemical employees can use a new dedicated toll-free phone number to access Aetna EAP services: 1-866-841-9377 or visit www.AetnaEAP.com (log in with your company ID code: MYCPCEAP).

Introducing the 401(k) Plan Annual Increase Program

Saving for your retirement has never been easier! Chevron Phillips Chemical is pleased to introduce the Annual Increase Program, which allows you to automatically increase your Chevron Phillips Chemical 401(k) Plan contributions each year with very little effort. You just elect the amount of the increase (as a percentage of pay) and the date you want the increase to take effect each year. Then, each year on the designated date, your contributions will automatically increase by the percentage you’ve elected. It’s that easy! And you may stop your participation in the program at any time. Remember, increasing your contribution every year, even by a small amount, can help your savings grow and can provide for a more comfortable retirement.

If you’re interested in contributing more to your savings plan, take advantage of the Annual Increase Program. Go to www.netbenefits.com and login to your account. Select “Payroll Deductions” from the task bar located on the left hand side of the page and follow the simple steps to sign up. Not currently contributing to the 401(k) plan? It’s easy to get started! Just log on to Fidelity NetBenefits® at http://www.netbenefits.com or call the Chevron Phillips Chemical Pension & Savings Service Center at 1-866-771-5225 to enroll in the Plan.

Great News Regarding 401(k) Plan Loans

We are pleased to announce that soon you’ll be able to continue making payments on any outstanding loans you have in the Chevron Phillips Chemical 401(k) Plan when you retire or leave the Company, provided you do not take a distribution from your account.

As a current participant with one or more outstanding loans in your 401(k) Plan, you can elect to make payments by transferring funds electronically from your bank account! So, there is no need for you to remember to send in a monthly check. It’s done automatically on the 15th of each month. If the 15th falls on a weekend or holiday, then payment will be made on the next business day.

In order to take advantage of this new repayment method, call the Chevron Phillips Chemical Pension and Savings Service Center at 1-866-771-5225 to speak to a representative, or simply login to your account online at www.netbenefits.com to sign up. Watch for more details coming soon!

Flexible Spending Accounts Reminder!

You have until December 31, 2007 to incur expenses that are reimbursable under your flexible spending accounts, and you have until March 31, 2008 to file a claim for eligible expenses incurred during the 2007 calendar year. If Aetna does not receive your request by March 31, any money remaining in your account will be forfeited.

Diabetes America — Your One-Stop-Shop for Diabetes Wellness and Management Resources

Whether you are pre-diabetic, newly diagnosed with diabetes, or have lived with this disease for years, you now have a one-stop-shop for diabetes wellness and management resources, thanks to Diabetes America, a new disease management program available January 1, 2008.

Through Diabetes America, Chevron Phillips Chemical employees enrolled in the company medical plan can take advantage of a variety of personalized treatment and educational services, including medical treatment, 24/7 hotline services, diabetes education, nutritional counseling, and exercise and lifestyle instruction.

HOW CAN DIABETES AMERICA HELP?

Offering 12 treatment centers across Texas in the Houston, Dallas/Fort Worth, Corpus Christi and San Antonio areas, Diabetes America offers not only convenience, but cost savings. For just a $10 copay (for the Cost-Saver option, your deductible and coinsurance amount will apply) for same-day services at a Diabetes America treatment center, you can access a wide range of services and support, including:

Working in Tandem with Your Physician

The personalized diabetes care plan developed by Diabetes America is designed to integrate with, and support, the course of treatment you may be receiving from your personal physician. Diabetes America doctors do not replace your treating physician.

Medical Care

• Minimum of five physician visits during year 1 of program
• Annual retinal exam
• Free diabetes screening for you and your dependents age 18 and older
• Development of personalized diabetes management plan (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

Are You at Risk for Diabetes?

Nearly one-third of Americans who have diabetes don’t realize they have it! To see if you’re at risk for diabetes, take the self-assessment.

Also, be aware that some people exhibit symptoms of diabetes, while others may not. If you have any of the following symptoms, contact your doctor:

• Extreme thirst
• Frequent urination
• Unexplained weight loss

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

Online Services

• Appointment scheduling
• Access to personalized health record

NEED MORE INFORMATION?

Diabetes America is one of the many ways that Chevron Phillips Chemical is looking out for your health and well-being. For more information about Diabetes America, visit www.diabetesamerica.com. Beginning January 1, 2008, you can schedule an appointment at one of the many Diabetes America locations through the organization’s web site or by calling 1-866-MY-DIABETES (1-866-693-4223).

Diabetes Self-Assessment (source: Diabetes America)

Diabetes is most common in African-Americans, Hispanics/Latinos, Native Americans, Asian-Americans and Pacific Islanders. However, you may be prone to developing this disease, even if you aren’t in a high-risk group.

To find out if you are at risk for diabetes, answer the yes/no questions below, then add up your points:

		Yes	No	Your Points
1.	My weight is equal to or above that listed in the Body Mass Index Chart (see below) for my height.	5 pts	0 pts
2.	I am under 65 years of age and I get little or no exercise during a usual day.	5 pts	0 pts
3.	I am between 45 and 64 years of age.	5 pts	0 pts
4.	I am 65 years or older.	5 pts	0 pts
5.	I am a woman who has had a baby weighing more than nine pounds at birth.	5 pts	0 pts
6.	I have a sister/brother with diabetes.	5 pts	0 pts
7.	I have a parent with diabetes.	5 pts	0 pts
Total Points

If you scored 3 – 9 points:

You are probably at low risk for having diabetes now. But don’t just forget about it — especially if you are African-American, Hispanic/Latino, Native American, Asian-American or a Pacific Islander

If you scored 10 or more points:

You are at great risk for having diabetes. Only your health care provider can determine if you have diabetes. At your next office visit, find out for sure

At-Risk Weight Chart Body Mass Index

(Please note: This is not a measure of the correct or “best” weight for you.)

Height in feet and inches without shoes	Weight in pounds without clothing
4'10"	129
4'11"	133
5'0"	138
5'1"	143
5'2"	147
5'3"	152
5'4"	157
5'5"	162
5'6"	167
5'7"	172
5'8"	177
5'9"	182
5'10"	188
5'11"	193
6'0"	199
6'1"	204
6'2"	210
6'3"	216
6'4"	221
If you weigh the same or more than the amount listed for your height, you may be at risk for diabetes.

Did You Know?

The Facts About Weight Loss (from the Food & Drug Administration)

Being obese can have serious health consequences. These include an increased risk of heart disease, stroke, high blood pressure, diabetes, gallstones, and some forms of cancer. Losing weight can help reduce these risks. Here are some general points to keep in mind:

Any claims that you can lose weight effortlessly are false. The only proven way to lose weight is either to reduce the number of calories you eat or to increase the number of calories you burn off through exercise. Most experts recommend a combination of both.

• Very low-calorie diets are not without risk and should be pursued only under medical supervision. Unsupervised very low-calorie diets can deprive you of important nutrients and are potentially dangerous.
• Fad diets rarely have any permanent effect. Sudden and radical changes in your eating patterns are difficult to sustain over time. In addition, so-called “crash” diets often send dieters into a cycle of quick weight loss, followed by a “rebound” weight gain once normal eating resumes, and even more difficulty reducing when the next diet is attempted.
• To lose weight safely and keep it off requires long-term changes in daily eating and exercise habits. Many experts recommend a goal of losing about a pound a week. A modest reduction of 500 calories per day will achieve this goal, since a total reduction of 3,500 calories is required to lose a pound of fat. An important way to lower your calorie intake is to learn and practice healthy eating habits.

Health for Life - Healthy Holiday Recipes

Enjoy these healthy holiday recipes!

Sweet Potato Soufflé

Ingredients:

4 large sweet potatoes

2 tablespoons olive oil

1/2 cup skim milk

1/2 cup dry sherry

1/2 cup brown sugar

1/2 cup frozen orange juice from concentrate

1 teaspoon nutmeg

1 teaspoon cloves

1 teaspoon cinnamon

1 pinch salt

4 large egg whites

2 tablespoons sugar

2 oranges cut in thin slices

Cooking Instructions:

1. Preheat oven to 350°F.
2. In a large pot, cover the sweet potatoes with water and bring to a boil. Boil until tender.
3. Drain and peel the potatoes and place in a large mixing bowl. Mash well.
4. Add the olive oil, milk, sherry, brown sugar, orange juice, nutmeg, cloves, cinnamon and salt. Beat well with a mixer.
5. Spoon mixture into an oiled, ovenproof gratin dish.
6. Bake until the potatoes are hot — about 25 minutes.
7. While the soufflé is cooking, make the meringue. In a clean bowl, whip egg whites until almost stiff. Gradually add the sugar and continue to beat until soft peaks form.
8. During the last five minutes of cooking the soufflé, top with the meringue mixture.
9. Return to oven and remove when the meringue is lightly browned. Garnish with the sliced oranges.

Nutrition Information:

Number of Servings: 10
Per Serving
Calories	230
Fat	3 g
Protein	4 g
Sodium	60 mg
Carbohydrate	48 g
Fiber	3 g
Saturated Fat	1 g

Wild Rice and Cranberry Salad

Ingredients:

1 cup wild rice (uncooked)

1 bag fresh cranberries

1/4 cup orange juice

1 tablespoon lemon juice

1/4 cup sugar

1/2 cup chopped walnuts

Cooking Instructions:

1. Cook the wild rice according to directions. When cooked, run under cold water.
2. While the rice is cooking, combine the orange juice, lemon juice and sugar in a saucepan and bring to a boil. Let it boil for 1 minute, turn to a simmer and add the cranberries. Stir while cooking. When the cranberries start to pop, remove from the heat.
3. When the rice is cooked, mix with the cranberry mixture and put in the refrigerator. When ready to serve, garnish with the walnuts.

Nutrition Information:

Number of Servings: 8
Per Serving
Calories	150
Fat	4 g
Protein	4 g
Sodium	5 mg
Carbohydrate	26 g
Fiber	3 g
Saturated Fat	0 g

Career Development Objectives Added to PM Process

As the year draws to a close, you should begin finalizing your performance plan for 2007. Using the Performance Management (PM) online tool, you can complete the efforts and results section. This is also a good time to take a look at what’s new and start planning ahead for 2008.

For 2008, a new career development planning section has been added to the PM tool/process. This new addition offers an ongoing opportunity for you and your supervisor to explore your interests and abilities, strategically set short- and long-term career goals, and plan for future work successes by developing an action plan for the year.

The new career development section will allow you to identify your mobility, functional areas of interest, short- and long-term career goals, and key strengths. Working together with your supervisor, you will then develop an action plan to achieve your individual goals. The idea is to identify and create development opportunities that will increase your engagement and happiness at work, as well as your contributions to the success of Chevron Phillips Chemical.

“This new section will help us match an employee’s career goals and interests with the company’s business needs,” explained Maricela Caballero, Learning, Development and Strategic Staffing Manager.

Unlike the performance objectives and results, your career development objectives will not be a part of your performance review rating. The career development section of the PM process is designed to help lay the groundwork for a long and satisfying career with us, to help you take responsibility for your career path at Chevron Phillips Chemical, and to ensure that both you and your supervisor are on the same page when it comes to your development goals.

As you begin to outline your performance objectives for 2008, remember to take your department’s overall organizational goals into account so that you can develop and align your individual goals accordingly. Lastly, be sure to include your supervisor every step of the way. Ongoing dialogue improves our capacity for organizational excellence and makes our company stronger.

Note: The PM process applies to salaried U.S. $ employee and expats. Other employees should check with their HR Business Partner to see what local processes are applicable to their location.

Now is the Time to Review Your W-4 Withholding Status

If your filing status or the number of withholding allowances for 2008 will change, you should file a new W-4. This is important, as the tax withholding criteria established on your W-4 form largely determines whether or not you will owe money or be receiving a tax refund at tax time. You can calculate your tax withholding using the Internal Revenue Services (IRS) Withholding Calculator at http://www.irs.gov/individuals/.

To date, the IRS has not posted the 2008 W-4; however you can use the 2007 W-4 form to make your changes, which can be found on nSight > Portfolio > Forms. W-4 forms should be signed and submitted to the Chevron Phillips Chemical Employee Service Center for processing. Completed forms can be faxed to 1-832-813-6100, emailed to CPCAHRServiceTeam@cpchem.com or inter-company mailed to the attention of “Employee Service Center — Headquarters.”

This is also a good time to review your pay advice and make sure your name and mailing address are correct. Incorrect names, home mailing addresses and social security numbers can cause incorrect reporting and a delay in the receipt of your 2007 W-2 form in late January.

New Social Security Wage Maximum

The maximum wage contribution for 2008 will be increased to $102,000; which is a change from $97,500 in 2007.

The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, remains at 7.65% for 2008. The maximum Social Security tax withheld will be $6,324 in 2008; which is a change from $6,045 in 2007. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45% tax.

If you have questions, please contact the Chevron Phillips Chemical Employee Service Center at 1-800-446-1422 (option #3) or check with your HR Department.

OFCCP Compliance Now Mandatory for Chevron Phillips Chemical

After a recent review by the Legal Department, it has been determined that Chevron Phillips Chemical is now subject to the jurisdiction of the Office of Federal Contract Compliance Programs (OFCCP). The OFCCP is part of the U.S. Department of Labor’s Employment Standards Administration and is responsible for ensuring that employers doing business with the Federal government comply with the laws and regulations requiring non-discrimination and affirmative action.

What exactly does this mean? It means that as a subcontractor, Chevron Phillips Chemical is required to adhere to numerous OFCCP recordkeeping and reporting requirements, and ensure that applicants and employees receive equal employment opportunities regardless of race, color, religion, sex, and/or national origin.

We are proud to say that Chevron Phillips Chemical has always conducted business as if we were already subject to these mandatory requirements. Since the inception of the JV, the Company has:

• completed annual affirmative action plans,
• posted all jobs via Career Navigator,
• put an applicant tracking system in place to collect the required internal and external candidate data, and
• complied with the laws and regulations requiring non-discrimination.

We did all this because it was the right thing to do. The only difference now is that before compliance was voluntary and now it’s mandatory.

For questions on any OFCCP compliance issues, contact Virginia Hubbard at hubbavd@cpchem.com.

Holiday Gifts: To Receive or Not to Receive

At this time of year it is not uncommon to receive social invitations and/or holiday gifts from vendors. Before you accept anything from a vendor, be sure the gift or invitation will not place you in a compromising position. Just ask yourself, will this gift or invitation place, or give the appearance of placing, me in a prejudicial or embarrassing position, interfere in any way with my impartial discharge of duties or reflect adversely on the integrity of the Company or any of its employees?

As outlined in the Conflict of Interest policy, employees may accept unsolicited gifts, meals, entertainment and other normal social amenities from customers, suppliers, persons or enterprises who do, or are seeking to do, business with Chevron Phillips Chemical as long as the following guidelines are adhered to:

• They are of nominal value and would be paid by normal Company expense account procedures;
• They are otherwise consistent with staff, business unit or other applicable Company policy;
• They are consistent with acceptable business customs and practices;
• They are not illegal or in violation of the ethical guidelines of either company;
• They are not solicited by the recipient;
• They are not given or received on a repetitive basis;
• They cannot be construed as a bribe, pay-off or kickback; and
• They will not cause, and would not reasonably be perceived to cause, the recipient to alter normal business judgment concerning any transaction with the Company.

The policy also states that cash or cash equivalents in any amount may not be accepted. And if a gift is offered that is not normally associated with customary business practices, the Finance and Legal Departments should be consulted prior to its acceptance.

Many business units, staffs, facilities or international locations may have additional policies that are more restrictive than those outlined in the Corporate Conflict of Interest Policy. Those policies must always be followed. Because it’s impossible to list every circumstance that may cause a conflict of interest, we just ask that you exercise good judgment in dealing with these situations.

In-depth information on the Company’s Conflict of Interest policy can be found on nSight > Overview > Policy Portal > Ethics & Compliance > EC 00001 Code of Conduct.