Denbury Resources Inc. 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. It is estimated that the study will be completed in the fourth quarter of 2009, following which, the company will make a decision as to whether or not they will take initial steps to build such a pipeline. In related developments, two proposed Midwestern gasification plants with which Denbury has CO2 purchase contracts, one in Illinois and one in Indiana, have been selected to proceed to the term sheet negotiation phase under the US Department of Energy Loan Guarantee Program. A third proposed gasification plant with which Denbury has a CO2 purchase contract, was also selected by the loan guarantee program. The company plans to commence a pipeline study for this plant proposed to be built along the Gulf Coast of Mississippi, which would likely be a 110mi pipeline that connects to the existing Free State Pipeline.