NYSE:DNR $ 12.41 -0.16 -1.27% Volume: 3,994,756 October 24, 2014

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greencore-pipeline-project

We completed the first half of our 232-mile Greencore Pipeline in 2011; setting the stage for completion in late 2012.The Greencore Pipeline is the initial portion of our planned CO2 pipeline infrastructure in the Rocky Mountain region that will connect the various sources of CO2 to our oil fields. The first segment of the pipeline will start at the Lost Cabin gas plant and run northeast through Wyoming. In 2012, we plan to complete the pipeline into southeast Montana, where it will initially terminate at Bell Creek Field. This pipeline has a planned capacity of 725 MMcf/d and will greatly expand the capture of industrial CO2 in the region.

Purpose of the Greencore Pipeline

Denbury’s plan is to construct the Greencore Pipeline to transport CO2 from anthropogenic sources to petroleum reservoirs in the Rocky Mountain region. Initially only 50 MMcf/d will be transported. However, the pipeline is designed to transport future volumes of up to 725 MMcf/d with the addition of pump stations and additional sources of CO2. Implementation of more enhanced oil projects would result in incremental oil production that would not otherwise be economically produced. The incremental production would extend the economic life of the fields and benefit both state and local economies.

Facts About the Pipeline

  • Size : 20” diameter pipeline
  • Length : Approximately 232 miles
  • Volume : Designed to transport up to 725 MMcf/d of CO2
    Design and Operations : The pipeline has been designed to operate under the rules and regulations of the U.S. Department of Transportation (“DOT”)
  • Regulatory : Compliant with local, state and federal regulations. Prepipeline construction involves approvals for wild life habitat, culture resource studies, water resources and wetland-delineation, along with other environmental and safety statutes
  • Targeted Completion Date : 4th Quarter 2012 (constructed over 2 years, start August 2011 thru December 2011 and August 2012 thru December 2012)

Environmental Protection Commitments for Pipeline Routing

Wildlife Conservation

Greater Sage-grouse

  • The project has re-routed the pipeline out of no surface occupancy (“NSO”)areas i.e., within 0.6 mile of occupied leks.
  • The project has committed to constructing outside the nesting season (March 15 to June 30) over a two-year period. In addition, nesting habitat was delineated during spring 2010 along the entire pipeline corridor in order to quantify nesting habitat disturbance.
  • The project has committed to not constructing November 15 to March 14 in mapped winter concentration areas. A total of three aerial surveys (January 2010 and winter 2010/2011) will be completed to identify winter concentration areas along the pipeline.

Raptors

  • The project has re-routed the pipeline out of NSO areas of artificial nesting structures within the Casper field office (i.e., within 0.5 mile of the structures).
  • The project has committed to not constructing within the appropriate raptor nest buffer during the raptor nesting season (February 1 to July 31). A total of two aerial surveys (spring 2010 and spring 2011) will be completed to identify active raptor nests along the pipeline.
  • The project has committed to not constructing within half a mile of mapped bald eagle winter roosts (November 1 to March 30). A total of three aerial surveys(January 2010 and winter 2010/2011) will be completed to identify winter roosts along the pipeline.

Mountain Plover

  • The project has committed to not constructing within mapped mountain plover habitat from April 10 to July 10, unless mountain plover nest surveys are conducted. If a nest is found, a quarter-mile buffer will be implemented prior to construction in 2011. Mountain plover habitat mapping was completed in Spring 2010.

Wetlands and Waterbodies Conservation

  • The project has committed to conducting comprehensive wetland and waterbody delineations within the project area to determine the spatial extent of hydrological features potentially impacted by the project.
  • The project has committed to avoiding wetland and waterbody features to the maximum extent possible. If avoidance is not feasible, the project has committed to implementing neckdowns (i.e., a reduction in right-of-way width, 50 feet or less) during construction.

Cultural Conservation

  • The project is working with the BLM to mitigate adverse effects to National Register-eligible historic and prehistoric sites by compliance with section 106 of the National Historic Preservation Act.
  • The project is avoiding several eligible prehistoric sites via reroutes. Project archaeologists have worked closely with civil surveyors to identify viable avoidance options, including centerline re-routes and removing roads from consideration as access.
  • The project is cooperating with the BLM with regard to Native American concerns. Sensitive cultural features (e.g., stone circles, stone cairns) are being avoided per BLM request.
  • Where avoidance is not an option, the project is committed to data recovery excavation to mitigate adverse effect. Thus far, two sites have been identified for this type of treatment.
  • Fencing and right-of-way width restrictions will be implemented at severalNational Register-eligible sites in close proximity to construction activities to ensure avoidance. Other mitigation measures include, for example, restoration of the original grade of historic railroads and trails/roads that are impacted by the project.
12.41 -0.16 -1.27% Volume: 3,994,756 10/24/14
| Site Design by Eisenberg And Associates