2 CO2 Transportation Currently Denbury operates or controls over 420 miles of CO2 pipelines and has approximately 400 miles of pipeline under construction. These pipelines stretch from Jackson Dome to our producing regions in Mississippi, Louisiana and Texas. CO2 Transportation One of the key properties of CO2 is its ability to become a super critical fluid (the so-called dense phase) at a pressure of 1,100 psi, thus allowing it to be transported by pipeline. This is far more efficient than transporting CO2 as a gas and allows Denbury to transport large volumes of CO2 over hundreds of miles. Currently Denbury operates or controls over 420 miles of CO2 pipelines and has approximately 400 miles of pipeline under construction. These pipelines stretch from Jackson Dome to our producing regions in Mississippi, Louisiana and Texas. Our CO2 is dehydrated and 98% pure, making it transportable using carbon steel pipe. Our pipelines operate at pressures ranging from 1,200 psi to 2,200 psi, and we can increase capacity by increasing the pipeline operating pressure (assuming the pipeline is capable of sustaining the higher pressure), as we have recently done with our NEJD Pipeline. We are in the process of building the Green Pipeline, which will run from the end of our NEJD Pipeline near Donaldsonville, Louisiana, southeast of Baton Rouge, Louisiana, westward to our Hastings field, south of Houston, Texas. This pipeline is a key element to our expansion strategy and will not only allow us to send Jackson Dome CO2 to fields in Texas, but will also allow us to gather man-made sources of CO2 from the many power plants and industrial facilities along its route. 12 Denbury Resources Inc. 2008 Annual Report
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