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2007 NFL Draft (Projections/Mock Drafts/Evaluations/Draft)

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Here's the official definition:

Compensatory Picks

In addition to the 32 picks in each round, there are a total of up to 32 picks dispersed at the ends of Rounds 3 through 7. These picks, known as "compensatory picks", are awarded to teams that have lost more talented players than they gained the previous year in free agency. These picks cannot be traded, and are awarded based on a proprietary formula based on salary and performance. So, for example, a team that lost a backup quarterback in free agency might get a sixth-round compensatory pick, while a team that lost their best wide receiver might receive a third- or fourth-round pick.
If fewer than 32 such picks are awarded, the remaining picks are awarded in the order in which teams would pick in a hypothetical eighth round of the draft.
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Here's a little more on it...

COMPENSATORY DRAFT PICKS: Compensation awarded by the league to teams who lost more UFAs than they signed. Compensation is in the form of extra draft picks added to the end of rounds three through seven. The quantity of picks is equivalent to the difference of UFAs signed to UFAs lost. For example, if a team loses 4 UFAs and signs 1 UFA, they will receive three Compensatory Selections. The value of the picks is determined by the difference of the contracts signed by the players lost and those acquired. The highest possible compensatory pick is the 31st of the third round (91st overall). If a team has signed an equal number or more UFAs than it lost, no "Compensatory Picks" are awarded.
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And some more here...
 
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