Energy Law Report: Upstream Producers Affected by Appeals Ruling
In In re SemCrude L.P., the US Court of Appeals for the Third Circuit examined certain state-specific protections in favor of oil and gas producers in Kansas, Oklahoma, and Texas. The court held that the application of the choice of law rules in Article 9 of the Uniform Commercial Code meant that the Kansas and Texas protections did not apply with respect to claimed security interests in property of SemCrude. The court also held that the Oklahoma protection, which was effected outside of that state’s UCC, was not applicable to downstream oil purchasers. The authors of this article explain the state-specific producer protections and the court’s decision.
*This article was first published in LexisNexis, and subsequently in Pratt’s Energy Law Report, Vol. 18, No. 2, February 2018.