ITEM 8.01 OTHER EVENTS
This current report on Form 8-K was prepared to provide revised financial information for the years ended December 31, 2006, 2007 and 2008 for immaterial errors identified in the second quarter of 2009. As noted in Footnote 2 to our consolidated financial statements included in our quarterly report on Form 10-Q for the period ended June 30, 2009, we have identified certain leases amounting to $8.2 million that expired in 2006, 2007, and 2008, which were not expensed as required. Based on guidance set forth in Staff Accounting Bulletin No. 99, "Materiality" and in Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," ("SAB 108"), we have determined that these amounts are immaterial to each of the periods affected and, therefore, we are not required to amend our previously filed reports. However, if these adjustments were recorded in 2009, we believe the impact could be material to this year. We have adjusted our previously reported results for the years ended December 31, 2006, 2007, and 2008 for these immaterial amounts as required by SAB 108. In addition to recording additional lease expirations, we have made four other adjustments to prior year numbers to correct other immaterial items, which included the following adjustments: (1) tax expense of $3.5 million for discrete tax items recorded in 2008 related to the year ended December 31, 2007 (2) revenue reduction for volumetric ineffectiveness related to our derivative positions of $1.7 million recorded in 2008 related to the year ended December 31, 2007
(3) dry hole expense of $2.4 million not recorded in the year ended December 31, 2007 and (4) deferred compensation income of $7.1 million recorded in 2007 related to the year ended December 31, 2006 and prior years. The balance sheets as of December 31, 2008 and December 31, 2007 have been adjusted to reflect the cumulative impact of these errors. Please note, we have not otherwise updated our financial information for activities or events occurring after the date this information was presented in our annual report on Form 10-K for the year ended December 31, 2008, filed on February 27, 2009 ("2008 Form 10-K"). You should read our quarterly reports on Form 10-Q for the periods ended March 31, 2009 and June 30, 2009 and our current reports on Form 8-K for updated information. This filing includes updated information for the following items included in our 2008 Form 10-K:
ITEM 8. Financial Statements and Supplementary Data

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