OKLAHOMA CITY, Okla. (Legal Newsline) - Oklahoma Attorney General Drew Edmondson on Wednesday filed an amicus brief in support of the state's oil and gas producers.
Edmondson, who filed the brief before the U.S. Court of Appeals for the Third Circuit in the Semcrude bankruptcy case, said the court's decision could have a significant impact on the governance of the oil and gas industry.
According to the brief, Edmondson is requesting the court to allow the state Supreme Court to answer questions surrounding the Oklahoma Production Revenue Standards Act (PRSA), which is the primary focus of the Semcrude bankruptcy.
"The conflict in this case arises from the fate of oil and gas proceeds Semcrude was holding at the time it declared bankruptcy," Edmondson said.
"Oklahoma producers claim those proceeds belong to them and should be kept separate from bankruptcy proceedings, but the company's secured creditors claim those funds should be used to cover Semcrude's debt."
The brief is in support of a motion filed by a group of Oklahoma oil and gas producers calling on the court to send the questions to the state Supreme Court, according to Edmondson.
Semcrude is a subsidiary of Tulsa-based SemGroup, an oil and asphalt transportation and storage provider that filed for Chapter 11 bankruptcy last year.