Goldman Sachs, others, sued by Kansas oil producers

Wichita EagleMay 21, 2010 

Dozens of Kansas oil producers are suing Goldman Sachs and several oil companies, contending they deliberately avoided paying for millions of dollars worth of oil.

The suit stems from the 2008 bankruptcy of oil and gas middleman SemGroup and its many subsidiaries.

SemGroup, based in Tulsa, collected oil from 54 producers in Kansas and 33 in Oklahoma in June and July of 2008, but it declared bankruptcy in late July before paying for the oil.

In the bankruptcy settlement, the producers received some money for the oil, but they are now seeking the full amount.

SemGroup emerged from bankruptcy in December and now operates as a public company.

In the suit, the producers are going after the companies that acquired the oil from SemGroup, contending they never actually paid for it.

The suit names as defendants J. Aron, Goldman Sachs' commodities trading unit, as well as British Petroleum, ConocoPhilllips, Plains Marketing GP and Plains Marketing.

Read the complete story at kansas.com

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