NOTE 7.RELATED-PARTY TRANSACTIONS

During the three- and nine-month periods ended September 30, 2014 and 2013, we entered into the following related-party transactions (in millions):

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Sales	$	421	$	1,040	$	2,560	$	3,027
Allocated costs for services provided by affiliates	$	43	$	33	$	120	$	100
Purchases	$	45	$	43	$	165	$	129

Through July 2014, substantially all of our products were sold to Occidental’s marketing subsidiaries at market prices and were settled at the time of sale to those entities. Beginning August 2014, we started marketing our own products directly to third parties.

The statements of income include expense allocations for certain corporate functions and centrally-located activities historically performed by Occidental. These functions include executive oversight, accounting, treasury, tax, financial reporting, finance, internal audit, legal, risk management, information technology, government relations, public relations, investor relations, human resources, procurement, engineering, drilling, exploration, marketing, ethics and compliance, and certain other shared services. Charges from Occidental for these services are reflected in selling, general and administrative expenses.

Purchases from related parties reflect products purchased at market prices from Occidental’s subsidiaries and are used in our operations. These purchases are included in production costs. There are no significant related party receivable or payable balances at September 30, 2014 and 2013.

Starting September 2014, Occidental agreed to provide us a line of credit for our cash needs, through the spin-off, at an annual interest rate of 0.36%. As part of the spin-off, we expect to pay to Occidental any balance on the line of credit and any cash on our balance sheet immediately prior to the spin-off date. There was not any balance due to Occidental under the line of credit as of September 30, 2014.