EPA Announces $1.3 Million Settlement for Permian Basin Company

 USEPA News Release:

DALLAS, TEXAS (July 13th, 2023) – The U.S. Environmental Protection Agency issued a Consent Agreement and Final Order (CAFO) to Callon Permian LLC for emissions from tanks, flares, and other equipment that EPA identified using a helicopter equipped with a special infrared camera that detects hydrocarbon leaks. Callon LLC will perform corrective actions at thirteen of the company’s 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. VOCs contribute to the formation of ozone (smog), which can result in health problems such as asthma, lung infections, bronchitis and cancer. There also are climate change co-benefits achieved through this settlement in the form of an estimated reduction of over 4.6 million pounds of methane emissions. Methane is a potent climate pollutant that also impacts human health. 

“This settlement will help protect residents of the Permian Basin from hazardous emissions and sends a strong message to facilities in the area that violate the health standards outlined in the Clean Air Act,” said Regional Administrator Dr. Earthea Nance. “By using state-of-the art technology and helicopter surveillance, we are able to detect these hazardous emissions over a large geographic area. EPA will continue to deliver cleaner air for communities by holding companies accountable through enforcement and compliance.” 

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 (SIP).

The CAFO requires several actions from Callon Permian LLC, including site-specific corrective actions, inspections, equipment upgrades, and permitting and operations reviews. The settlement also requires the company to conduct optical gas imaging surveys at each of their facilities, tank pressure monitoring, and combustion control device monitoring to ensure future compliance. Lastly, Callon Permian LLC must pay a $1,285,000 penalty to resolve the alleged violations.

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