Facility development and field improvements provide significant economic value to both state and local economies. Well work, field infrastructure improvements, land acquisition, CO₂ recycle facility construction, power installation and other capital expenditures can be in the hundreds of millions of dollars per field. Direct and indirect impacts include new job creation and growth in labor income and gross regional product, resulting in added value to the area through state and local tax revenue, royalty income and product sales. Our projects generally span between 10-20 years of significant investment.

Our process rejuvenates fields as we install equipment with state of the art technology to ensure identification of age-related problems and modernization of facilities to prepare them for CO₂ injection. CO₂ EOR operations require specialized equipment that replaces and consolidates older equipment and facilities, resulting in a smaller environmental footprint from production operations. Areas of field improvement routinely include:

• mechanical integrity review of wellbores and surface production facilities;
• pressure testing of existing casing and replacement (if necessary) of old tubing;
• installation of new wellhead equipment;
• installation of emissions reduction equipment;
• installation of remote telemetry field monitoring equipment that reduces vehicle traffic;
• installation of sound barriers, silencers and landscaping;
• reclamation of land after removal of old and unneeded equipment;
• replacement of old production flow lines with new flow lines; and
• installation of other updated technical equipment to assist with 24/7 operations and safety monitoring activities.

Denbury has a strong, long-term commitment in the Gulf Coast and Rocky Mountain regions through our growing oil production, operations, and investments in our CO₂ development and transportation projects.

For the fiscal year 2019 and 2020 combined, Denbury made the following capital investments¹ in Alabama, Louisiana, Mississippi, Montana, North Dakota, Texas, and Wyoming:

¹ Includes all development and maintenance capital and excludes capitalized interest, end-of-life P&A, capitalized exploration (not recorded by state), acquisitions and sales.

For the fiscal year ending December 31, 2020, it is estimated that our oilfield activities had the following direct economic impact in Louisiana, Mississippi, Montana, North Dakota, Texas, and Wyoming²:

²The information above relates to all oilfield employees employed by Denbury during 2020. It does not include data for employees located in Denbury's corporate headquarters.
³Annual Taxes include: maintenance, severance, locomotive, conservation, ad valorem production, restoration fee, and ad valorem property taxes.