Lawsuits, Claims, Contingencies And Commitments	9 Months Ended
Sep. 30, 2014
LAWSUITS, CLAIMS, CONTINGENCIES AND COMMITMENTS
Lawsuits, Claims, Contingencies and Commitments	NOTE 5.LAWSUITS, CLAIMS, CONTINGENCIES AND COMMITMENTS We or certain of our subsidiaries are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at September 30, 2014 and December 31, 2013 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. In connection with the spin-off, we will be required to indemnify Occidental for taxes incurred as a result of the failure of the spin-off or certain transactions undertaken in preparation for, or in connection with, the spin-off, to qualify as tax-free transactions under the relevant provisions of the Internal Revenue Code of 1986, as amended, to the extent caused by our breach of certain tax-related representations or covenants made in connection with the spin-off. We also have agreed to pay 50% of any taxes arising from the spin-off or related transactions to the extent that the tax is not attributable to the fault of either party. However, if we receive an increase in the tax basis of our depletable, depreciable or amortizable assets as a result of any such tax being imposed, we will pay to Occidental an amount equal to any reduction in our tax liability attributable to such basis increase at the time such reduction in tax liability arises. In addition, we and Occidental will indemnify each other in a manner principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of the remaining Occidental business with Occidental. Our off-balance sheet contractual obligations as of September 30, 2014, increased by approximately $92 million, or 13% since December 31, 2013. This increase is largely to support our capital program, including to secure drilling rigs, services and transportation commitments.

NOTE 5.LAWSUITS, CLAIMS, CONTINGENCIES AND COMMITMENTS

We or certain of our subsidiaries are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at September 30, 2014 and December 31, 2013 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations.

In connection with the spin-off, we will be required to indemnify Occidental for taxes incurred as a result of the failure of the spin-off or certain transactions undertaken in preparation for, or in connection with, the spin-off, to qualify as tax-free transactions under the relevant provisions of the Internal Revenue Code of 1986, as amended, to the extent caused by our breach of certain tax-related representations or covenants made in connection with the spin-off. We also have agreed to pay 50% of any taxes arising from the spin-off or related transactions to the extent that the tax is not attributable to the fault of either party. However, if we receive an increase in the tax basis of our depletable, depreciable or amortizable assets as a result of any such tax being imposed, we will pay to Occidental an amount equal to any reduction in our tax liability attributable to such basis increase at the time such reduction in tax liability arises. In addition, we and Occidental will indemnify each other in a manner principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of the remaining Occidental business with Occidental.

Our off-balance sheet contractual obligations as of September 30, 2014, increased by approximately $92 million, or 13% since December 31, 2013. This increase is largely to support our capital program, including to secure drilling rigs, services and transportation commitments.