Allegedly funded by big oil and gas money, WSC pumped hundreds of thousands of dollars into television ad buys portraying state Sen. Shawn Mitchell (R-Broomfield) and Republican businesswoman Libby Szabo as alternative-energy backers despite records to the contrary.

WSC, with ties to former oil and gas lobbyist and Republican Gov. Bill Owens, was reportedly founded with the mission of reclaiming key Senate seats in a bid to reclaim a Republican majority in 2010.

Mitchell fairly easily defeated Democrat Joe Whitcomb by 41,569 votes to 35,474 votes, or 54 percent to 46 percent, in Senate District 23. But Szabo narrowly lost to Democrat Evie Hudak, 29,942 to 31,145, or 51 percent to 49 percent, in Senate District 19.

“This Western Skies ad makes Shawn Mitchell look great, and he has the most God-awful voting record [on alternative energy],” Whitcomb said in an earlier interview. “He was one of only seven or eight senators who voted against doubling Colorado’s alternative-energy portfolio.”

An investigative series by the Colorado Independent led to the IRS probe of WSC and three other 501(c)4 nonprofits after a request by Colorado Ethics Watch.

(Photo/Jason Kosena)

It’s as clear as the Western Skies: Nonprofit 501(c)4s are the new 527s of the Colorado political scene, the latest way that shadowy special interest groups are tapping into seemingly unlimited undisclosed special interest cash to attack or support candidates who can further their agendas. Take, for instance, the Western Skies Coalition, a conservative group claiming to be a 501(c)4 nonprofit dedicated to “promoting issues that make our nation great.”

Though it has yet to show up as actually registered with the Internal Revenue Service as a nonprofit, Western Skies claims ex-Colorado Gov. Bill Owens, a former oil and gas lobbyist and founder of the 2006 notorious but now-defunct 527 political committee, Trailhead Group, as a member of its executive committee.

This campaign cycle, the group has been sponsoring TV ads portraying Republican state Senate candidates such as incumbent Shawn Mitchell (R-Broomfield) as renewable energy advocates despite voting records to the contrary. Western Skies-sponsored ads have also appeared to boost Republican state Senate candidate Libby Szabo, who is running against Democrat Evie Hudak in the northern Jefferson County race, targeted by both parties, to replace Democrat Sue Windels.

In the 2006 election cycle, 527 groups — so-called for the IRS tax code section that governs their operations — emerged in full force as political tools used by both Democratic and Republican special interests to utilize unlimited cash to support or attack candidates and causes while bypassing federal contribution limits in a cloak of secrecy.

After the bruising 2006 election cycle, state Rep. Morgan Carroll (D-Aurora) targeted 527s, pushing through a law requiring they disclose their donors. Now the money is shifting to a new loophole, 501(c)4 nonprofits, By law, (c)4′s — as they are already being called for short — must spend a majority of their funding promoting social causes and less than half their money on political advocacy.

“If they just registered, they could in theory spend $2 million in the next couple of months completely on political activities and the rest of the year spend $2 million and $1 on social welfare activities and therefore their primary purpose was social welfare activities,” said Chantell Taylor, director of Colorado Ethics Watch. “They’re really frustrating to nail down.”

As the Colorado Independent reported earlier this week, state Sen. Josh Penry (R-Fruita) is reported to be a top organizer behind Western Skies, a top-dollar (c)4 that is soliciting funds from oil and gas companies with operations in Colorado and Wyoming with the intent to reinstate Republicans as the power majority in the state senate by 2010. Penry, considered an up-and-coming Republican leader from the oil and gas-rich Western Slope, has not returned several calls and e-mails seeking clarification of his involvement with Western Skies.

“Josh Penry has been raising money from oil and gas companies for this effort and the spending is focused on electing Republican candidates in the Senate,” says Carrie Doyle, the executive director of the environmental group Colorado Conservation Voters. “So, the assumption is the goal is to claim a Republican majority in the state Senate.

“The irony is that this is oil and gas money being used to talk about how these candidates stand for clean energy when their voting records are anything but.”

Other observers, including Rep. Carroll, agree the intent of Western Skies appears clear: By 2010, Republican Party activists in Colorado have expressed the intent to retake control of the state Senate — and potentially the House of Representatives. Specifically, state GOP party Chairman Dick Wadhams has publicly expressed his plan that Republicans expect to make modest gains this year, but are pinning their hopes on a majority takeover by 2010.

As far as Western Skies’ nonprofit charitable activities, Carroll said that she would like to know what nonpolitical function the group serves. It is unclear from the group’s Web site. None of the principles listed as organizers of the organization have returned multiple phone calls seeking clarity this week. Legally, 501(c)4s must channel at least 51 percent of their funds toward charitable donations. No more than 49 percent can be used for strictly political purposes.

It is also unclear which specific companies or individuals have contributed funds to Western Skies to benefit specific GOP candidates or its other charitable activities, but Carroll spoke in blunt terms about why many oil and gas companies and industry interests operating in Colorado are so keen about wanting Republicans back in charge.

“They had virtually the run of state government for 40 years of Republican rule, and when Democrats took over we hurt them and hit them and their obscene profit margin,” Carroll said. “If providing a large influx of cash elects the people they want elected, then they will get carte blanche and go back to do what they want.”

Specifically, since taking control of the legislature in 2004, and the governor’s office two years ago, Colorado Democrats have enacted legislation at odds with the monopoly that oil and gas interests prospered under four decades of largely largely unencumbered Republican majority rule. For example, environmentalists and other interested parties have subsequently been appointed to the state’s oil and gas advisory commission, and have been met with great resistance and criticism from oil and gas special interests, particularly when it comes to a stricter set of regulations to mitigate environmental impacts.

Which leads Carroll to provide the following clarity to the motivations behind efforts to reinstate the old way of doing business:

“It’s cheaper to spend an ass-pile of money to win these elections with relative anonymity and reap the profits down the road,” she said.

After the rise of 527 groups who spent much of 2006 attacking both Democratic and Republican candidates, Carroll successfully pushed through a law requiring 527s to disclose their donors. Now operating under the auspices of the charitable 501c(4)s, organizations like Western Skies are protected from such donor disclosure requirements. However, several sources say that oil and gas interests are behind the funding of this group.

“Part of what’s so offensive is these groups appear to be trying to avoid disclosure — and using a legal apparatus to mask themselves and distance themselves from their true agenda,” Carroll said. “Trying to deceive voters is a problem for the whole system — we have a right to know who they are.”

Meanwhile, State Sen. Mitchell, who voted several times against legislation aimed at mandating increases in Colorado’s renewable energy portfolio, is currently being portrayed in a Western Skies ad as a champion of alternative power sources.

Mitchell did not return calls and e-mails seeking clarification this week about his current position on renewables, but his Democratic opponent, Joe Whitcomb, voiced his concern about the disingenuous and anonymous commercials, noting, however, that they can cut both ways.

“All they end up doing is canceling one another out and then it just ends up being up the candidates and the efforts that they exert, knocking on doors, fund-raising, going to events to persuade people, but that’s not to say [the ads are] not effective. They can be extremely effective,” Whitcomb said.

“Josh Penry has been raising money from oil and gas companies for this effort and the spending is focused on electing Republican candidates in the Senate,” said Colorado Conservation Voters Executive Director Carrie Doyle. “So the assumption is the goal is to claim a Republican majority in the state Senate. The irony is that this is oil and gas money being used to talk about how these candidates stand for clean energy when their voting records are anything but.”

Penry didn’t return several phone calls and e-mails requesting comment.

Western Skies has been running television ads supporting incumbent Sen. Shawn Mitchell (R-Broomfield), who’s running against Democrat Joe Whitcomb in Senate District 23, and ads have also been running touting the alternative-energy agenda of Republican businesswoman Libby Szabo, who’s running against Democrat Evie Hudak in Senate District 19.

Sources say two other races being targeted by Western Skies include Senate District 8, where Republican Al White is running against Democrat Ken Brenner, and Senate 26, where Republican Lauri Clapp is running against Democrat Linda Newell, who last week was facetiously endorsed by comedian Jon Stewart during a taping of the Daily Show during the DNC.

(Photo/Jason Kosena)

A conservative Colorado political group allegedly backed by big-oil money and calling itself the Western Skies Coalition has targeted key state Senate races, apparently bent on portraying pro-oil Republicans vying for those seats as champions of alternative energy.

Cable television ads paid for by Littleton-based Western Skies tout the “alternative-energy” agendas of incumbent Sen. Shawn Mitchell (R-Broomfield) and businesswoman Libby Szabo, who’s running for Senate District 19.

The most recent two-week ad buy, at a reported $143,000, depicts Mitchell as a big fan of solar, wind and biofuels, and claims he supports the “wise use” of natural gas and clean-coal energy. In fact, over the past 10 years, Mitchell has repeatedly opposed renewable energy standards in Colorado. Mitchell represents Senate District 23 in Broomfield, where he’s being challenged in November by law student and U.S. Army veteran Joe Whitcomb.

“This Western Skies ad makes Shawn Mitchell look great, and he has the most god-awful voting record [on alternative energy],” Whitcomb said Tuesday. “He was one of only seven or eight senators who voted against doubling Colorado’s alternative-energy portfolio.”

Mitchell did sponsor a bill that capped solar-panel inspection fees, but Whitcomb called that legislation mere green-washing.

“His whole ‘I’m a Sun-God’ bill was capping inspection fees for solar panels at $300, which is higher than they are in most counties already, so it was really saying, ‘Hey, I’m all for solar energy’ without really doing anything to help solar energy,” said Whitcomb.

Mitchell did not respond to requests for an interview for this story.

Szabo, meanwhile, is running in the open seat in north Jefferson County against Democrat Evie Hudak, who currently serves on the Colorado State Board of Education. Hudak said the ads echo the GOP’s broader approach of blaming Democrats for the current energy crisis while at the same portraying themselves as potential alt-energy saviors.

“I’ve seen the ads on TV for both Libby and Shawn and they’re virtually identical,” Hudak said. “I’m not familiar with that organization [Western Skies], although I guess that doesn’t surprise me that they’re paid for by oil and gas companies, because so is [Republican U.S. Senate candidate] ‘Big-Oil Bob’ [Schaffer].”

Schaffer, a former Colorado congressman and oil and gas executive, is running against Democratic Rep. Mark Udall. Schaffer has received significant contributions from the oil and gas industry, but in campaign ads and stump appearances has been talking up alternative energy. Hudak called Szabo a one-trick pony on the energy issue.

“My opponent does not have a record because she has not run for public office before,” Hudak said. “But I’ve seen a lot of her flyers and she seems to be using the energy issue only. I don’t see her using any other issue.”

Szabo did not return phone calls or e-mails requesting comment.

Western Skies is a Virginia corporation and as such does not have to reveal its contributors. However, a source identified several oil and gas companies with operations in Colorado that have pumped a total of as much as $1 million into the group’s coffers, including the Houston-based Anadarko Petroleum Corporation. On Tuesday, Anadarko spokesman John Christiansen said he was not sure whether the company had made a contribution, and that the company does not disclose any specific amounts it contributes to charities or campaigns.

“The reason we give to entities is we see value in it, not to see the dollar amount out there,” Christiansen said.

Western Skies Coalition was registered in Colorado on April 2 as a Virginia corporation by Sean Tonner, president of the Highlands Ranch-based GOP consulting group, Phase Line Strategies, as the group’s registered agent in Colorado.

Listed as directors on the organization’s Virginia filing are Tonner, and fellow Phase Line employees, Katie Behnke and Mike Ciletti.

The three have worked on behalf of numerous high-profile Republicans — including former Gov. Bill Owens, the founder of the now-defunct Trailhead Group, one of the most notorious and wealthiest 527 GOP hit squads of 2006. During the time that Owens served as governor, between 1998 and 2006, Tonner was his chief of staff, Ciletti worked as a deputy director of the Office of Innovation and Technology and Behnke was a press assistant.

Tonner did not return a call requesting comment, and a message left on the answering machine of Western Skies’ Littleton office Tuesday was not immediately returned.

Bill Owens’ daughter, Monica Owens — who also is with Phase Line and is currently a delegate at the Republican National Convention (RNC) in St. Paul — is also helping coordinate Western Skies activities. Under the “contribute” section of the Western Skies Web site, here’s how Owens describes the group:

Our organization is dedicated to promoting issues that make our nation great. We are dedicated to people who care about the values America was founded on and together, we can make real progress on the issues we stand for and believe in.

Within the next few weeks you will have the opportunity to support the ideas and policies important to you by making a donation to Western Skies Coalition. Please contact Monica Owens at 303.730.2702 if you have any further questions.

Western Skies’ Web site highlights several areas of interest, including a pro-growth economic agenda, a strong national defense, environmental preservation, health care reform and increased domestic energy production.

(Source: Western Skies Coalition.org)

Ironically, under a photo of a panoramic, untouched mountain vista, the group indicates that, “It is vital for the United States to increase its domestic supplies of energy and decrease its dependence on foreign oil. Western Skies Coalition is committed to promoting and encouraging competition in the ethanol market, removing limits on new oil and gas exploration, restructuring the burdensome requirements placed on energy production in the United States and supporting the research of renewable energy…”

The site also promotes numerous well-known conservative causes and mouthpieces, including the Heritage Foundation, The Cato Institute, Hugh Hewitt, Ann Coulter and Sean Hannity.