On KFKA, Independence Institute's Oliver failed to identify guest as energy industry operative

Summary: Amy Oliver of 1310 KFKA failed to disclose guest Greg Schnacke's energy industry ties when he misleadingly characterized the group he leads, Americans for American Energy, as "a nonprofit organization dedicated to educating the public about the importance of greater energy independence." In fact, AAE reportedly was founded "to advocate for increased energy development and less regulation," and Schnacke is vice president of a lobbying firm that created it.

On her May 8 1310 KFKA broadcast, Independence Institute Director of Operations Amy Oliver uncritically allowed guest Greg Schnacke, president and CEO of Americans for American Energy (AAE), to promote the group as "a nonprofit organization dedicated to educating the public about the importance of greater energy independence for America and promoting public policies that support that goal." However, as Colorado Media Matters has pointed out, The Denver Post reported on August 16, 2007, that AAE was created "to advocate for increased energy development and less regulation." Further, in a May 29, 2007, article, the Anchorage Daily News (accessed through the Nexis database) stated that the organization was "an empty front, set up by a political ad agency," rather than the "grassroots-based group" it had claimed to be. Oliver also failed to mention that Schnacke formerly headed the Colorado Oil & Gas Association (COGA), as Colorado Media Matters also noted.

After Oliver introduced Schnacke as being from AAE, she later remarked, "And Greg, of course, your résumé is pretty long. You worked for, I think it was when Bob Dole was still in the Senate, you were there. You have a long time doing public policy." However, Oliver never disclosed that Schnacke, who is also vice president of the lobbying firm Policy Communications Inc., for 13 years led COGA, the energy industry's main trade group in the state. Oliver also did not disclose that Policy Communications actually created AAE, as the firm notes on the "successes" page of its website:

Our team founded and currently manages Americans for American Energy, a ground-breaking grassroots coalition that advocates aggressively at the state and federal levels for increased reliance on all forms of American energy.

Additionally, Oliver failed to ask Schnacke about the allegation, reported by the Post on October 25, 2007 (accessed through Nexis), that AAE is "a front for the oil-and-gas industry." According to the article about AAE's advocacy of natural-gas drilling on Colorado's Roan Plateau, "Because of its nonprofit status, AAE does not have to disclose many details about itself, including the names of donors. But its positions, political ties and involvement in an ad campaign promoting oil drilling in the Arctic National Wildlife Refuge in northeastern Alaska have led some to conclude it's more than a grassroots nonprofit." The Post further reported:

Besides the Roan, AAE's objectives include supporting greater access to minerals in Alaska; opposing "anti-production elements" in the House energy bill; opposing over-regulation of produced coal bed methane water in Colorado; and pushing back on over-regulation of air emissions from oil and gas operations.

Last month, Gov. Dave Freudenthal, D-Wyo., cut off relations with AAE after they made "highly inappropriate assertions" about his support for its campaign. The group said it was unintentional.

AAE's creation stemmed from a $3 million contract last year that Pac/West Communications, an Oregon-based consulting firm, had with the state of Alaska to educate Americans about oil drilling in Alaska's arctic refuge, or ANWR.

Using Pac/West money, AAE became the message center for pushing Congress to approve opening up ANWR for drilling, according to the Anchorage Daily News. Sims said the money was a "contribution" to the group.

The president and chief executive of the group is Greg Schnacke, who until a month ago was head of the Colorado Oil and Gas Association, an industry group. [emphasis added]

The Associated Press also noted that AAE's founder, Jim Sims, "is the former director of communications for President Bush's National Energy Policy Task Force," which was embroiled in controversy over Vice President Dick Cheney's refusal to disclose details relating to the role oil and gas industry figures played in the task force.

From the May 8 broadcast of 1310 KFKA's The Amy Oliver Show:

OLIVER: Question to all of you: Are your energy bills high enough for ya? Or would you like them just a little bit higher? Would you like to rely a little bit more on unpredictable foreign sources for your energy? Don't those seem reasonable? Well, I got to tell you, there are plenty of people in Colorado who would like just that, or who are -- they are promoting policies that will ultimately lead to that. That's why I'm pleased to be joined by somebody I consider a friend, Greg Schnacke, who, he is from the -- well, he's from Americans for Energy Independence -- or Americans for American Energy. But energy independence is part of your mission. Is that correct?

SCHNACKE: That's correct. Nice to see you -- or nice to talk to you again.

OLIVER: And Greg, of course, your résumé is pretty long. You worked for, I think it was when Bob Dole was still in the Senate, you were there. You have a long time doing public policy.

SCHNACKE: Well, yeah, and the gray hair to show for it.

OLIVER: [laughs] Oh, no, your picture on the website does -- I mean, you look like a young guy. And it's AmericansForAmericanEnergy.org. And quickly, Greg, just refresh listeners' memories, what is your mission?

SCHNACKE: Well, we're a nonprofit organization dedicated to educating the public about the importance of greater energy independence for America and promoting public policies that support that goal. So it's a pretty big mission, but we're, we really think that that's where the public is and what we need to be focused on as a nation.

OLIVER: Yeah, well, it seems like a big mission, but it also seems pretty natural, pretty easy. I mean, we want to be more energy independent. That would make sense. So, naturally, we are promoting policy that would do just that, are we not?

SCHNACKE: Well, I'd say right now that the politics of energy is about as messed up as I've ever seen it. And the, certainly the partisan attack on our traditional sources of energy -- oil and gas and coal and, to some degree, nuclear -- are really misplaced, and, certainly from a national economic standpoint, we're getting to a point where we're really going to start doing some serious damage to this nation, and we need to pay attention to that. And that's why we are focused on mostly federal issues in Congress. But, frankly, we're focused on a couple of states that are really, really got the bull's-eye on them right now in terms of energy policy. And Colorado happens to be one of them, and it's really -- as I've told people, if we were based in Atlanta, Georgia, I think we'd be focused on Colorado because of what's going on here.

OLIVER: Because it's so bad.

SCHNACKE: It really has got, it's really just been turned upside down in the last couple years.

—C.H.