Independent contractor Calico Energy Services is suing Nevada over a $2 million contract to build a gas pipeline in the state.
The suit alleges that the company did not disclose that the contract was awarded by the Nevada Department of Environmental Quality, and instead “filed the complaint as if it was an independent contractor and paid Nevada for it.”
The suit is the latest blow to the state’s booming gas industry, with new permits issued for fracking in five western states this year alone.
The California-Nevada border is the epicenter of the industry, and the state has become a hotbed for frack sites.
The latest contract was for a $1.8 million contract with Energy Services of Nevada to install the pipeline and to provide gas service.
“This is yet another example of the continuing decline in public trust in our governmental agencies, and this lawsuit sends a clear message that public confidence in government will not be eroded by corporate cronyism,” Nevada Attorney General Adam Laxalt said in a statement.
“California has been a leader in renewable energy and now the state of Nevada is taking on the big boys of our state by doing the right thing by ending the use of hydraulic fracturing.”
The company hired a subcontractor to conduct a feasibility study for the project, and it’s not clear if Calico’s work was actually performed.