May 10 (Reuters) - Oklahoma's attorney general said he

is firing the outside legal team hired to defend a state law

prohibiting state pension systems from contracting with

companies that limit investment in the oil and gas industry,

days after a judge temporarily blocked the statute's

enforcement.

Republican Attorney General Gentner Drummond in a statement

on Thursday said he was firing counsel at the Plaxico Law Firm,

which he said was handpicked by state Treasurer Todd Russ to

defend the law. Drummond said he would also remove Russ from any

decision-making authority over the legal defense going forward.

The decision came after a state judge on Tuesday issued a

temporary injunction blocking enforcement of the law in oil-rich

Oklahoma. The judge found that a retired state employee who is

challenging the measure was likely to succeed in his lawsuit

alleging the law violates the state constitution and is too

vaguely written.

"It is extremely disappointing that the counsel hired by

Treasurer Russ was unable to secure a favorable ruling in

defense of Oklahoma's anti-ESG law," Drummond said, referring to

so-called environmental, social and governance policies.

"Because of this failure, the law is now on hold and at risk

of being struck down entirely. Oklahomans deserve better."

Russ, a fellow Republican, said in a statement he had

initially asked Drummond to defend the law in court, only to

have those requests rejected, and that he did not believe his

decision-making authority could legally be removed.

He added that he saw grounds to appeal the court ruling

and that he "had hoped to have the attorney general as my

defender all along."

Plaxico attorneys did not respond to a request for

comment.

Oklahoma's 2022 law is among dozens of Republican-sponsored

ESG bills across the country aimed at protecting fossil fuel

companies from climate-driven constraints adopted by some Wall

Street firms.

Despite those concerns, major financial institutions have

largely rejected calls to divest from the oil and gas

industries, and some have scaled back their involvement with

groups seeking to pressure major emitters.

The Oklahoma law prohibits state agencies from doing

business with financial firms that limit investments in energy

companies, and requires the state treasurer to maintain a list

of those companies even if they continue to own shares in fossil

fuel firms.

Russ last year included BlackRock ( BLK ), Wells Fargo ( WFC )

, JPMorgan Chase ( JPM ) and Bank of America ( BAC ) on

the list.