Interactive 2009 Annual Report (PDF 7.56 MB) - Denbury Resources ...

Denbury Resources Inc. 2009 Annual Report 113Item 9. Changes in and Disagreements with Accountantson Accounting and Financial DisclosureNone.Item 9A. Controls and ProceduresEvaluation of Disclosure Controls and ProceduresAs of the end of the period covered by this report, an evaluation of the effectiveness of the design and operation ofthe Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) wasperformed under the supervision and with the participation of the Company’s management, including our ChiefExecutive Officer and our Chief Financial Officer. Based on that evaluation, the Company’s Chief Executive Officer andour Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as ofDecember 31, 2009 to ensure: that information required to be disclosed in the reports it files and submits under theSecurities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periodsspecified in the SEC’s rules and forms; and that information that is required to be disclosed under the Exchange Actis accumulated and communicated to the Company’s management, including our Chief Executive Officer and our ChiefFinancial Officer, as appropriate to allow timely decisions regarding required disclosure.Evaluation of Changes in Internal Control over Financial ReportingUnder the supervision and with the participation of our management, including our Chief Executive Officer and ourChief Financial Officer, we have determined that, during the fourth quarter of fiscal 2009, there were no changes in ourinternal control over financial reporting that have materially affected, or are reasonably likely to materially affect, ourinternal control over financial reporting.Management’s Report on Internal Control over Financial ReportingOur management is responsible for establishing and maintaining adequate internal control over financial reportingas defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended. Under the supervisionand with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer,we assessed the effectiveness of our internal control over financial reporting as of the end of the period covered by thisreport based on the framework in “Internal Control—Integrated Framework” issued by the Committee of SponsoringOrganizations of the Treadway Commission. Based on that assessment, our Chief Executive Officer and our ChiefFinancial Officer concluded that our internal control over financial reporting was effective to provide reasonableassurance regarding the reliability of our financial reporting and the preparation of our financial statements for externalpurposes in accordance with U.S. generally accepted accounting principles.The effectiveness of the Company’s internal control over financial reporting as of December 31, 2009, has beenaudited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their reportwhich appears herein.Important ConsiderationsThe effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subjectto various inherent limitations, including cost limitations, judgments used in decision making, assumptions about thelikelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover,projections of any evaluation of effectiveness to future periods are subject to the risk that controls may becomeinadequate because of changes in conditions and the risk that the degree of compliance with policies or proceduresmay deteriorate over time. Because of these limitations, there can be no assurance that any system of disclosurecontrols and procedures or internal control over financial reporting will be successful in preventing all errors or fraud orin making all material information known in a timely manner to the appropriate levels of management.Item 9B. Other InformationNone.Form 10-K Part II