US fines Texas oil company Callon Permian over emissions

(Reuters) – The U.S. Environmental Protection Agency (EPA) on Thursday said Callon (NYSE:) Permian LLC was fined $1.3 million for excess emissions from tanks, flares and other equipment at company’s oil and gas facilities in the West Texas Permian Basin.

The EPA said it identified emissions using a helicopter equipped with a special infrared camera that detects hydrocarbon leaks.

The company failed to comply with requirements for flares, tanks, and combustors as well as general requirements of the federally approved Texas State Implementation Plan, the EPA said.

Callon will perform corrective actions at 13 of its oil and gas facilities in the West Texas Permian Basin, resulting in an estimated reduction of over 1.2 million pounds of volatile organic compound (VOCs) emissions, the agency said.

VOCs contribute to formation of ozone (smog), which can result in health problems such as asthma, lung infections, bronchitis and cancer.

The EPA said it has issued a consent agreement and final order to Callon that requires several actions from the company, including site-specific corrective actions, inspections, equipment upgrades, and permitting and operations reviews.