(6c) Achieving Consistent Risk Evaluation Results Preventing

Consistent Risk Assessments are important inputs into management decisions (process, safety, cost allocations). Consistency in assessing risks allows, Risk Engineering team confidence in comparing risk results across all operating units.

Critical Mitigation Element (CME) Methodology is an Occidental Oil and Gas Corporation (OOG) probability analysis methodology internally developed for the purpose of achieving consistent results when conducting risk evaluations throughout the company's worldwide upstream oil and gas operations.

The methodology was developed as an efficient means of utilizing the strengths of Layer of Protection Analysis. A CME is defined as a robust barrier (mitigation element) that reduces the probability by one level on the company's risk matrix or, in some cases, reduces the consequence level. In the past, OOG relied heavily on the industry historical approach to estimate event probability which resulted in very inconsistent estimations of event probability since the accuracy was based solely on the knowledge and experience of Process Hazards Review team members.

CMEs must be supported by verifiable field and test programs that are required to ensure overall CME integrity. These supporting elements are termed Key Mitigation Elements. By using this CME methodology, OOG has demonstrated much greater consistency across their corporate-wide risk profile. Since prioritization of risk mitigation projects is based on risk levels, consistency provides an effective basis for resource allocation. OOG's implementation of the CME methodology has resulted in significantly improved accuracy and consistency and, ultimately, a more efficient and effective risk management program.