Elements Newsletter

Chevron Phillips Chemical Profit Sharing Plan Payout and Variable Annuity Benefit Enhancement

Chevron Phillips Chemical is pleased and proud to announce that it has awarded its employees with a 5% Profit Sharing payout, and a 7% Variable Annuity Benefit enhancement for 2009.

We believe that these benefits are a very important part of your overall compensation package and have provided Q&As on www.benefitium.com to help you better understand these benefits. These profit sharing enhancements are applicable to all participating Chevron Phillips Chemical employees (other than Chevron Phillips Chemical Puerto Rico Core employees); salaried Performance Pipe employees; and Performance Pipe employees paid on an hourly basis at Reno and Knoxville hired prior to January 1, 2004.

Profit Sharing contributions will vary from year to year depending upon Chevron Phillips Chemical’s performance and its ability to support additional contributions, based on that performance. There may be years in which there is no profit sharing match.

The Profit Sharing payout is based on your 401(k) pre-tax and/or Roth after-tax contributions made throughout the plan year. The table on the next page shows the basic Chevron Phillips Chemical employer match plus the 5% Chevron Phillips Chemical profit-sharing contribution for the 2009 plan year.

* Subject to annual Internal Revenue Service contribution limits. 2009 Maximum allowed by IRS is the lesser of 100% or $49,000 of eligible pay.

If you are a participant in the 401(k) Plan, the Profit Sharing payout was posted to your 401(k) account by the end of March. The Variable Annuity Enhancement will be posted to your retirement account sometime during the second quarter. We’ll keep you posted on the exact date.

Interested in estimating your benefit now? You can receive an estimate of your Chevron Phillips Chemical retirement benefit by logging onto the Fidelity NetBenefits website at http://netbenefits.com. You will be able to log in to your account and receive estimates based on different retirement scenarios you input (such as retirement date, salary projection, etc.), review frequently asked questions and request forms.

And don’t forget! You can view your 401(k) balances, process transactions — such as loans and withdrawals — and make 401(k) investment election and deferral changes by logging onto the Fidelity NetBenefits website at http://netbenefits.com. You can contact Fidelity directly by calling the Chevron Phillips Chemical Pension and Savings Service Center at 1-866-771-5225.

Congratulations on another successful year, keep up the good work!

Aetna SmartSource: Helping You Make Smart Decisions About Your Care

When it comes to your health care, getting the right information, at the right time, can help ensure you get the care you need. Aetna SmartSource is a new online tool that provides this valuable information so you can make key decisions about your health.

Unlike most search engines and general health websites, Aetna SmartSource delivers information that’s tailored to you. Data is selected based on where you live and on your specific Aetna medical plan.

HERE’S HOW IT WORKS

Just enter a condition or symptom and Aetna SmartSource immediately goes to work, searching Aetna’s resources to identify:

• Aetna network doctors in your local area that specialize in treating your condition;
• Commonly prescribed medications and treatment options associated with your condition;
• Estimated health care costs;
• Aetna programs and discounts that may help you manage your health needs; and
• Health articles and tips relevant to your condition.

Your search results are provided in a HealthMap^®, an easy-to-understand visual diagram that helps you better understand the condition or symptom you’re researching. With the HealthMap^®, you’ll get the full picture of your health topic — including symptoms, treatment options, preventive steps and more — to help you make informed decisions about your care.

HOW TO ACCESS AETNA SMARTSOURCE

You can access Aetna SmartSource through Aetna Navigator^®, Simple Steps To A Healthier Life^®, or your Personal Health Record. To find out more about Aetna SmartSource, visit the Aetna website at www.aetna.com.

Easy Ways to Save on Health Care Dollars

With health care costs going up, we’re all looking for ways to stay healthy, while spending less. Here are some easy ways to save on health care dollars, while keeping you healthy:

• Don’t pass up preventive care: Preventive care helps you detect health issues early on, before they become serious, and costly, health care problems. The Company’s medical plan options cover a range of preventive care services, including routine physicals, well-child care, routine OB/GYN care, mammograms, as well as hearing and vision exams.
• Visit in-network providers: When you receive care from in-network providers, you get the benefit of lower, negotiated rates.
• Save the emergency room for real emergencies: Get treatment for day-to-day health issues, like a sprained ankle or ear infection, at a walk-in clinic or urgent care center. Receiving care at an emergency room for these everyday needs will cost you dearly, and can increase your out-of-pocket expense by hundreds of dollars.
  To locate a walk-in clinic or urgent care center where you live, go to Aetna DocFind^® at www.aetna.com/docfind/, select “Find a doctor,” enter your location information and pick “Urgent care facilities or walk-in clinics” under “Facilities.”
• Opt for generic drugs: While generic drugs are required by law to have the same high quality, strength, purity and stability as brand-name drugs, they cost far less than their brand-name counterparts.
• Use mail-order for maintenance medications: If you require a maintenance medication that you will be taking for more than two months, using the Express Scripts mail-order prescription service is a more cost-effective (your deductible doesn’t apply to mail-order prescriptions) and convenient option. Remember, mail-order is mandatory after two retail fills.
• Take advantage of FSAs: Flexible Spending Accounts (FSAs) allow you to set aside tax-free dollars to reimburse yourself for eligible expenses. If you currently participate in the Health Care and/or Dependent Care FSA, remember that you have until the last day of March following the end of the calendar year to file a claim for eligible expenses you incurred during the calendar year. Any money remaining in your account is forfeited. For example, the filing deadline for 2009 calendar year expenses is March 31, 2010. The date is just around the corner, so don’t miss it!

Allergies and the Not-So-Great Outdoors

When you’re allergy-prone, the great outdoors may not be so great — especially when you’re suffering from watery eyes, sneezing and congestion. Everyday actions, like weeding your garden or taking a hike with your kids, can bring on a hay fever or asthma attack. To help you enjoy the outdoors a little more, while sniffling a little less, here are some tips to consider:

• Keep out pollen, dust and mold:
  • Use an air conditioner, instead of a window fan, to cool your house.
  • Keep your car windows closed when you drive; re-circulate the air through your air conditioner.
• Avoid the a.m. hours: Pollen counts are generally highest in the morning, so try to limit outdoors activity during that time, if possible. To check your local pollen count, visit the American Academy of Allergy, Asthma & Immunology website at www.aaaai.org.
• Minimize contact to allergens:
  • Don’t hang your laundry outdoors to dry.
  • If you’ve been outdoors for an extended period of time, take a shower and change into fresh clothes.
• Consider HEPA filters: Trap dust, lint and pollen using high-efficiency particulate air (HEPA) filters in your air conditioner and furnace. You might also consider investing in an HEPA air purifier and HEPA vacuum. The Asthma and Allergy Foundation of America (AAFA) advises you to look for the Underwriter’s Laboratory (UL) seal and a statement of the Food and Drug Administration’s Class II approval when shopping for HEPA filters. For more information, visit the foundation’s site at www.aafa.org.
• Cover up when doing garden chores: Mowing, raking and pruning are sure to stir up pollen and dust, so wear a protective mask when doing your gardening.
• Monitor the air quality: Air pollution can trigger allergy attacks, so be careful when it’s hazy or smoggy. Your local newspaper or television/radio station will provide daily air quality reports. You can also visit the Environmental Protection Agency’s website at www.epa.gov/air/where.html to check your local air quality.

How Healthy Is Your House?

Maintaining a clean and tidy house is vital to your well-being. Here are some easy-to-implement ideas for keeping you and your house healthy:

• Don’t let the bed bugs bite: Dust mites in the bedroom can keep you sneezing rather than snoozing, so be sure to change your sheets weekly, and launder your dirty sheets in hot water that’s 130 degrees or more. You might also consider investing in special mattress covers designed to protect you from dust mites.
• Declare your family room a fur-free zone: Man’s best friend can also be a good friend to dust mites and other pests. Keep your pets off the furniture and vacuum your carpets weekly to pick up dust, fur and animal dander.
• Sweep and scrub down your kitchen: A crumb here and there or a stray lettuce leaf under the fridge can mean snack time to cockroaches and rodents. Sponge off counters, put your dirty dishes in the dishwasher and mop the linoleum at least once a week to keep your kitchen pest free. Seal cracks and openings to keep pests out.
• Give mold and mildew the cold shoulder: Wet, steamy environments, like showers and bathtubs are perfect conditions for mold and mildew to develop. To keep your bathroom mold-free, and protect yourself from mold spores, clean your bathroom with a solution of five percent chlorine bleach and a touch of detergent. In addition, be sure to wash your towels and bath mats weekly and allow them to dry out after you’ve used them.

Building Good Dental Habits, One Day at a Time

Routine dental checkups are a must for your overall health. With Chevron Phillips Chemical’s Aetna and Aetna Global dental plans, getting a routine dental checkup couldn’t be easier... or cheaper. Both plans offer coverage for routine preventive care services, paid at 100%, no deductible.

At minimum, you should get a dental checkup once a year and teeth cleanings twice a year. To be on the safe side, however, consult with your dentist and/or dental hygienist to determine a checkup schedule that’s right for your needs. In addition to getting regular dental care, it’s also important to make good dental hygiene a daily part of your life. You can start by:

• Brushing and flossing daily: To discourage plaque buildup, brush and floss at least twice a day and after meals.
• Using fluoride: Whether you’re an adult or child, fluoride can help keep teeth healthy by preventing tooth decay. These days, most over-the-counter toothpastes and mouthwashes contain fluoride.
• Checking out your teeth and gums for changes: When brushing, examine your mouth for any changes that may indicate the beginning of a dental health problem (e.g., swollen gums, chipped or discolored teeth and sores or lesions on your gums, cheeks or tongue).
• Cutting down your sugar intake: When starches and sugar from your food interact with the bacteria in your mouth, plaque is formed. Cutting out food and beverages high in simple sugar will help you manage your plaque levels and minimize your potential for tooth decay.
• Staying away from tobacco: Tobacco can give rise to a number of dental problems, as well as general health problems. Bad breath and stained teeth are only the beginning. You can also run the risk of developing oral cancer, gingivitis, periodontal disease and tooth decay

Breathe Easy with "Quit for Life"

Smokers have a chance to breathe easy, thanks to the Free & Clear® Quit for Life™ Program, available at no charge to all Chevron Phillips Chemical employees and their spouses. The program consists of phone-based treatment sessions with a professional tobacco treatment specialist. Free & Clear® will mail nicotine replacement therapy patches directly to your home.

The program features a “quit coach,” who works with you one-on-one to develop a tailored quit plan designed to help you:

• Prepare to quit;
• Manage your withdrawal symptoms;
• Identify triggers that cause your urge to smoke;
• Learn new behaviors and skills for staying tobacco-free; and
• Build a support network to encourage a tobacco-free life.

To learn more about the Free & Clear^® Quit for Life^™ Program, just call 1-866-QUIT-4-LIFE (1-866-784-8454).

Learning & Development Focus in 2010

Chevron Phillips Chemical believes in providing a culture of learning and development so that our talented employees can reach their full potential. One of the key human capital strategies in 2010 will be to invest in professional and leadership development through a blended approach, which includes LMS, instructor-led programs, SkillSoft online, rotational development assignments and more. In addition, eligible employees can participate in Chevron Phillips Chemical’s educational reimbursement program.

As we evaluate our Learning & Development curriculum, there are a number of factors to be taken into consideration, such as:

• Strong support of, and alignment with, the Company’s strategic objectives and goals;
• Opportunity to reinforce key elements of Performance Management, where individual development needs are recognized, and Talent Management, where employees’ career aspirations are considered; and
• Solutions to strengthen the organizational capability to execute business strategy and achieve the competencies needed in the Company, which is a key competitive advantage if we are to remain successful in the future.

Some of the key skills sets we will initially focus on are developing or enhancing:

• leadership;
• business acumen;
• operational excellence; and
• safety.

The intent is to develop programs with a global perspective, while remaining in tune with unique local needs.

Thanks to the input we have received from employees who participated in the Global Culture Survey, focus groups and one-on-one interviews, we have compiled valuable and insightful information to guide us in the selection of development initiatives.

To kick start this renewed focus on learning and development, we are investing in additional expertise to better support our efforts and are in the process of recruiting an instructional designer experienced in developing professional and leadership programs, as well as assessing vendor solutions. In addition, we have established a cross-functional team to enhance the LMS process and its training content.

While these initiatives are under way, we will continue to offer the following key, selected instructor-led programs:

• Best Negotiating Practices: Building Relationships & Trust
• Finance 101
• Introduction to Petrochemicals
• Presentation Skills
• Conflict Resolution
• Leader Training (by nomination only)

We also plan on conducting a training needs assessment to substantiate our current findings and will continue to evaluate our offerings to ensure the programs do address major employees’ development opportunities and remain aligned with organizational business needs. With the additional feedback from employees and supervisors, we will adjust and update our program offerings along the way.

As you develop your individual and/or organizational performance and development objectives, consider how you can best leverage the current Learning and Development opportunities. Remain focused on building strengths and enhancing competencies key to performing to the best of individual abilities. The Performance Management dialogue is an ideal time to determine what skill sets can be enhanced and how to share the responsibility for development between employee and manager.