North Dakota firm sues Extraction over $13M in unpaid Weld, Broomfield work

DENVER — A North Dakota construction company is suing the midstream subsidiary of Denver-based Extraction Oil & Gas Inc. (Nasdaq: XOG) for allegedly failing to pay millions in unpaid work in Weld and Broomfield counties.

In a complaint filed in the U.S. District Court of Colorado, Wanzek Construction Inc. claims that Elevation Midstream LLC hired it last March to build the Badger Central Gathering Facility and Buffalo Compressor Station in Weld County near Brighton, along with electrical work for the Broomfield Infield Gathering site where three well pads and multiple midstream equipment rigs are located.

All three of the projects were billed at just more than $32.72 million. Wanzek claims that Extraction is more than 30 days late on paying the remaining $13.32 million for those jobs despite having liens on the Brighton projects.

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Wanzek is asking for the court to award the remaining liens plus attorney fees and other damages, including ordering a foreclosure sale to collect on the lien. The construction firm is asking for its liens to be first in line for payment ahead of any other claims against Extraction.

Extraction, along with the rest of the U.S. oil industry, is tightening its belt as a COVID-19-induced double whammy of low prices and weak demand causes turmoil for the sector. Last week, the company skipped a $14.8 million long-term debt payment and elected to take a 30-day grace period on it, according to a U.S. Securities and Exchange Commission filing.

Extraction did not return a request for comment.