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Delta Petroleum Corporation
Audit Committee Complaint Procedures for Accounting and Related Matters
It is the policy of Delta Petroleum Corporation (the
"Company") to encourage open and effective channels
of information in order to help ensure the accuracy and reliability
of its financial statements and disclosures. In the absence
of adopting formal procedures for receiving and handling complaints
on an anonymous and confidential basis, an employee or other
individual may otherwise be reluctant to report concerns regarding
accounting or other matters because of fear of retaliation
by the Company's management or other employees. Pursuant to
Section 301 of the Sarbanes-Oxley Act of 2002, the applicable
rules of the Securities and Exchange Commission and the listing
standards of the Nasdaq Stock Market, the Audit Committee
has adopted this "Audit Committee Complaint Procedures
for Accounting and Related Matters" which shall be communicated
to the Company's employees. This establishes procedures for:
(a) the receipt, retention, and treatment of complaints received
by the Company regarding accounting, internal accounting controls,
or auditing matters; and (b) the submission by employees of
the Company, on a confidential and anonymous basis, of concerns
regarding questionable accounting or auditing matters.
The Audit Committee has adopted the following procedures for
the submission and handling of complaints or concerns:
1. The Company shall promptly forward to the chairman of the
Audit Committee any complaints or concerns that it has received
regarding accounting, internal accounting controls or auditing
matters.
2. Any employee of the Company may submit, on a confidential,
anonymous basis if the employee so desires, any complaints
or concerns regarding accounting, internal accounting controls
or auditingmatters. Confidential complaints or concerns may
be submitted by employees anonymously in writing in a sealed
envelope addressed to the Chairman of the Audit Committee,
Delta Petroleum Corporation. The sealed envelope shall
be labeled with a legend such as: "To be opened by the
Audit Committee only. Being submitted pursuant to the Procedures
adopted bv the Audit Committee. " This sealed envelope,
in turn, shall be sent in a larger envelope directly to Company's
legal counsel:
Krys Boyle, P.C.
Attention: James Beck
Suite 2700 South Tower
600 Seventeenth Street
Denver, Colorado 80202
Any such envelopes received by the Company's counsel shall
be forwarded promptly and unopened to the chairman of the
Audit Committee.
If an employee would like to discuss any matter with the Audit
Committee, the employee should indicate this in the submission
and include a telephone number at which he or she might be
contacted if the Audit Committee deems it appropriate.
3. Following the receipt of any complaints or concerns submitted
hereunder, the Chairman of the Audit Committee or his/her
designee (who shall be a member of the Audit Committee) will
make a determination of (i) whether such complaint requires
immediate investigation, (ii) whether it can be discussed
at the next regularly scheduled meeting of the Audit Committee,
(iii) whether it does not involve the Company's accounting,
internal audit controls or auditing practices and therefore
should be reviewed by a party other than the Audit Committee
or (iv) whether on its face it does not merit further consideration.
4. The Audit Committee may enlist employees of the Company
and/or outside legal, accounting or other advisors, as appropriate,
to conduct any investigation of complaints or concerns regarding
accounting, internal accounting controls or auditing matters.
In conducting any investigation, the Audit Committee shall
use reasonable efforts to protect the confidentiality and
anonymity of the complainant. However, in order to conduct
an effective investigation, it may not be possible to maintain
confidentiality and anonymity.
5. The Company does not permit discrimination, retaliation
or harassment of any kind against employees for complaints
or concerns submitted hereunder that are made in good faith,
upon reasonable belief, or for assisting in any investigation
relating thereto. However, the intentional filing of a false
report, whether orally or in writing, may subject the employee
to disciplinary or other action by the Company to the extent
permitted by law.
6. If an employee believes that he or she has been subject
to discrimination, retaliation or harassment for having reported
any complaints or concerns under this policy, the employee
should immediatelyreport those facts following the same procedures
that the employee submitted the original complaint or concern
so that it can be investigated and addressed promptly and
appropriately. If a complaint of discrimination, retaliation
or harassment is substantiated, appropriate disciplinary or
other action may be taken against the offending party commensurate
with the severity of the offense, which may include termination
of employment.
7. The Audit Committee shall retain as a part of the records
of the Audit Committee all documents related to any such complaints
or concerns for a period of no less than seven (7) years.
The Company's outside auditors may review the records from
time to time upon request.
8. The Audit Committee may modify or amend the procedures
set forth herein at any time without notice.
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