Oklahoma’s controversial anti-ESG law, formally called the Energy Discrimination Elimination Act, was permanently ordered on hold Friday by an Oklahoma County District Judge.
Judge Sheila Stinson, upon hearing arguments for nearly one hour issued her permanent injunction against enforcement of the Act by State Treasurer Todd Russ.
Attorneys representing the Attorney General Gentner Drummond’s office immediately informed the judge they will file an appeal of her decision.
“The ruling comes as no surprise given the fact that Treasurer Russ and his hand-picked legal counsel already lost the initial hearing to defend the law. At that time, the judge ruled the plaintiff had established a ‘substantial likelihood’ of success on the merits of the case,” said OAG Communications Director Phil Bacharach in a statement released Friday.
“We plan to appeal and hope we will be able to repair the damage at the Oklahoma Supreme Court.”
The Judge later explained to OK Energy Today the appeal will be taken up by the State Supreme Court.
Her approval of a permanent injunction, sought by attorney and former Democratic legislator Collin Walke, was based on the same reasons she cited in May when she approved a temporary injunction which suspended all enforcement by the state.
The Judge, in her May 7th ruling to grant a temporary injunction wrote, “The Court hereby grants temporary injunction against the enforcement of the Oklahoma Energy Discrimination Act of 2022, based on Plaintiff’s claims of Violation of Exclusive Benefit and Vagueness. Temporary injunction is denied as to Plaintiff’s claims of Freedom of Speech and Special Law/Barrier to the Court.”
She explained the Friday ruling that allows the permanent injunction is based on the same conclusion.
In her early May ruling, Judge Stinson found that “five separate Sections of the Act contain conflicting and vague provisions as to the exemptions/exceptions governmental entitites may claim and cconflicts to the required evidentiary standards.”
The suit was filed in December 2023 by retired state worker Don Keenan who contended the state’s enforcement of the Act by creating a “blacklist” of firms that incorporate ESG standards and refused to do financial business with the oil and gas industry.
In his presentation before the Judge on Friday, attorney Walke often referred to the “absurdity” of some of the claims made by the state in its defense of the Act. He noted that some of the firms on the blacklist also had revenue from oil and gas, leading him to question, “How can companies that make money off oil and gas be on the list? This Act is not for the benefit of beneficiaries.”
An attorney for the AG countered that “No due process rights have been taken away—rights are not deprived in any way.”
The lawsuit contends the blacklisting of selected financial firms that refuse to invest in oil and gas firms because of ESG policies harmed the Oklahoma Public Employees Retirement System and its pensions.
The State disagreed with an attorney telling the judge, “All this law does is require them not to boycott energy companies.”
The state had previously asked Keenan to post a bond and Judge Stinson first stated she considered it a “moot” point because she had granted the permanent injunction. However, upon being pressed by the state attorneys who indicated they will file an appeal, the Judge said if her ruling is overturned, then Keenan will be required to post a bond of $100.
Judge Stinson opened the hearing by making reference to a claim of conflict of interest raised by an outside group. As OK Energy Today reported early Friday, the claim was made by the Washington, D.C.-based American Accountability Foundation. Its co-founder Thomas Jones, provided documentation of a $500 contribution to the campaign of Judge Stinson’s husband in May when he ran for a legislative seat.
The Judge asked attorneys on both sides if they wished for her to recuse herself from the case. The attorneys declined and she proceeded with the hearing.
Judge Stinson’s ruling drew an immediate response from Tim Hill, President of the Alliance for Prosperity and a Secure Retirement.
“This is a victory for the state’s current and future retirees, and its taxpayers. Judge Stinson’s decision helps keep politics out of public finance just as the Oklahoma constitution dictates. We are gratified today’s rulings stop Oklahoma’s unconstitutional effort to include non-fiduciary issues when deciding how to invest public pension funds.”