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DENVER—A federal appeals court in Denver says BP America Inc. can try to have a lawsuit by the state of Oklahoma moved from state to federal court.

The 10th U.S. Circuit Court of Appeals ruled Thursday that the energy company can appeal a lower court decision saying the lawsuit must be tried in Oklahoma state court.

Oklahoma Attorney General Drew Edmondson filed a lawsuit last year accusing BP of artificially driving up the price of propane from about 2003 to 2006.

A federal court in Oklahoma rejected BP’s effort to transfer the case from state court under a law on class-action lawsuits. Edmondson argued the law didn’t apply because he was representing the general public.

But the appeals courts says there are unsettled questions about that.

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