Denbury has initiated a comprehensive feasibility study of a possible long-term CO2 pipeline project which would connect proposed gasification plants in the Midwest to the Company’s existing CO2 pipeline infrastructure in Mississippi or Louisiana. The Illinois Department of Commerce and Economic Opportunity has provided financial assistance for the feasibility study for the Illinois portion of the pipeline. The feasibility study is expected to determine the most likely pipeline route, the estimated costs of constructing such a pipeline, and review regulatory, legal and permitting requirements. It is estimated that the study will be completed in the fourth quarter of 2009, following which, the Company will evaluate external market conditions, the state of financing and construction of the proposed gasification projects, and make a decision as to whether or not they will take initial steps to build such a pipeline.
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