Coal companies to form opposition to anti-coal incumbents with political group

Coal companies to form opposition to anti-coal incumbents with political group

Aug 5 - McClatchy-Tribune Regional News - Julia Roberts Goad Williamson Daily News, W.Va.

An email recently published from a company official at International Coal Group indicates some coal companies may have plans to form a group to "defeat anti-coal incumbents" in the upcoming election.

Politicians would be targeted include Rep. Ben Chandler and Sen. Jack Conway in Kentucky and Rep. Nick Joe Rahall in West Virginia.

Such a group would take advantage of a recent Supreme Court ruling allowing corporations and labor unions to pour unlimited funds into efforts to influence elections.

If ICG and other companies form such a group under Section 527 of IRS code, they would not have to disclose spending until they file a tax return next year, after the Nov. 2 election. That would include advertising for political campaigns.

In the email, ICG Senior Vice-President Roger Nicholson said four companies, including Massey, have had discussions about forming a 527 group, although the company released a statement saying it "has not committed to being involved in a 527 at this time."

Anti-coal

The Daily News asked Rahall's campaign if the representative is concerned about becoming a target for such a group, if it did form. Greg Hoyer, Campaign Director for Rahall, said while it is troubling that groups can spend unlimited money, Rahall feels his constituents know he supports coal.

"People know 'anti-coal' is not the right way to describe Rep. Rahall," Hoyer said. "Everything he votes on, he has the coal miner in mind. Who knows what ax ICG has to grind. We have a lot of support from coal people, Consol and Patriot, to name just two."

Hoyer expressed concerns about the Supreme Court ruling, mentioning the 2004 campaign, in which Don Blankenship contributed heavily.

"When unlimited funds can come from unknown sources, that is always a scary thing," he said. Boyer cited the 2004 West Virginia Supreme Court election, in which Blankenship, the CEO of Massey, spent $3 million. Blankenship has said he was not necessarily supporting Brent Benjamin, who ultimately won the election, as much as he was working to defeat Justice Warren McGraw.

Jack Conway, who was mentioned along with Rahall in the email from Nicholson, is the Attorney General of Kentucky and is running for Senate against newcomer and Tea Party favorite Rand Paul. Calls to Conway's campaign headquarters were not returned to the Daily News at presstime.