The bell ringing at the state capitol is Round 3 of the fight between Oklahoma Teasurer Todd Russ and Attorney General Gentner Drummond.
The feud between the two state elected leaders escalated even more as Drummond sent Russ a letter pointing to his ” bad acts leading to this point” regarding the attempted firing of the AG as counsel to the Tobacco Trust.
When the Treasurer issued a public statement last week after the Tobacco Settlement Endowment Trust (TSET) Fund board went to the Supreme Court to fire the Attorney General as its legal counsel, Drummond responded in kind with a not-so-kind letter to Russ. The spat between the two erupted last year when Drummond fired an attorney hired by Russ to defend himself in a legal challenge to his enforcement of Oklahoma’s anti-ESG law.
“This letter serves as official notice that, notwithstanding your attempts to outsource Oklahoma’s sovereignty to New York, my office successfully negotiated agreeable terms and conditions adequately protecting Oklahoma’s rights and interests and, as such, permit the Tobacco Settlement Endowment Trust Board of Investors (“BOI”) to invest in the NBPD Eagle Fund LP (the “Fund”),” began Drummond in his letter.
“Candidly, your insistence on sending $100,000,000 to out-of-state entities is one thing, but waiving the State’s rights and outsourcing Oklahoma to New York, absent the chief law officer’s approval, is another. l Indeed, it is unlawful,” he chided Russ about the efforts of the TSET Board.
Drummond further stated his office respects the Fund and its outside counsel and they were not the issue “as they are innocent observers of your acts.” He accused the Treasurer of ignoring his prior request for information and pointed to one agreement with an entity other than the Fund with terms that outsourced Oklahoma to New York. Drummond asked the Treasurer to advise his office of any succh agreements so he could salvage Oklahoma dollars and its rights and defenses.
“Regrettably, your lack of patience and misjudgment in unlawfully executing the Fund documents mark yet another time you have ended too far over your skis,” continued the Attorney General in his pointed criticism of Treasurer Russ.
“Just last year, you mishandled the enforcement and litigation around Oklahoma’s anti-ESG law. My office intervened to protect Oklahoma’s oil and gas industry from discrimination by financial institutions kowtowing to a radical leftist agenda. Fortunately, this time around my office was able to intervene and professionally engage with the Fund’s counsel.”
Drummond boasted that his office “fortunately” was able to intervene and professionally engage with the Fund’s counsel. He also warned the Treasurer.
“Oklahoma cannot afford another repeat. Compliance with Oklahoma laws relating to procurement processes and protecting Oklahoma’s interests, rights, and litigation claims must be at the forefront of your decision-making.”
Below is the full letter.
April 17, 2025
The Honorable Todd Russ
Oklahoma State Treasurer
Todd.Russ@treasurer.ok.gov
Dear Treasurer Russ:
This letter serves as official notice that, notwithstanding your attempts to outsource Oklahoma’s sovereignty to New York, my office successfully negotiated agreeable terms and conditions adequately protecting Oklahoma’s rights and interests and, as such, permit the Tobacco Settlement Endowment Trust Board of Investors (“BOI”) to invest in the NBPD Eagle Fund LP (the “Fund”). Accordingly, I approve your request, and you may now execute the Fund documents, as amended and agreed to by my office and legal counsel to the Fund and NB Alternatives Advisers, LLC. A copy of the approved and amended Fund document is enclosed.
Additionally, it is necessary to further address your bad acts leading to this point. As you are aware, under the requirements of a 2006 Attorney General Opinion and established case law, your office initially requested approval of certain provisions in the Fund documents, which, as proposed, ceded the State of Oklahoma’s control of future litigation. Unfortunately, as my office was reviewing your request and negotiating more favorable, but not final, terms, you informed my office that you “recognize and agree to abide by” contractual provisions submitting Oklahoma to the “exclusive jurisdiction of any federal or state court sitting in New York City.” Additionally, and bizarrely, your March 24 correspondence states that you agree to waive Oklahoma’s right to a jury trial. See Letter dated March 24, 2025. Even worse, you executed the Fund documents without my office’s approval and with the awareness that my office rejected your efforts to cede Oklahoma to New York and waive a jury trial. Candidly, your insistence on sending $100,000,000 to out-of-state entities is one thing, but waiving the State’s rights and outsourcing Oklahoma to New York, absent the chief law officer’s approval, is another. l Indeed, it is unlawful. The Attorney General’s common law and statutory duty to review language waiving the State’s rights, claims, and defenses emanates from the Attorney General’s authority under title 74, section 8b(A)(l —3) of the Oklahoma Statutes. Deciding on whether the State should cede ground on forum selection runs to the core of the office’s duty to protect the State’s interests.
I TO be clear, my office respects the Fund and its outside counsel. Neither the Fund nor its counsel are the issue as they are innocent observers of your acts. To that point, and despite you ignoring my prior request for information, my office understands that you executed at least one agreement with an entity other than the Fund containing terms that also outsource Oklahoma to New York. Accordingly, immediately advise my office of any such agreement(s) so that I can salvage Oklahoma dollars and its rights and defenses.
Regrettably, your lack of patience and misjudgment in unlawfully executing the Fund documents mark yet another time you have ended too far over your skis. Just last year, you mishandled the enforcement and litigation around Oklahoma’s anti-ESG law. My office intervened to protect Oklahoma’s oil and gas industry from discrimination by financial institutions kowtowing to a radical leftist agenda. Fortunately, this time around my office was able to intervene and professionally engage with the Fund’s counsel. Through this professionalism, of which I respect and appreciate the Fund and its counsel, on Friday, April 1 1, 2025, my office and the Fund reached an agreement on key terms to protect Oklahoma and meet the investment objective— precisely as intended and as my office instructed you. Oklahoma cannot afford another repeat. Compliance with Oklahoma laws relating to procurement processes and protecting Oklahoma’s interests, rights, and litigation claims must be at the forefront of your decision-making.
It was signed “Respectfully” by Drummond as Attorney General.
