US Senator John Cornyn, a Texas Republican, Tuesday said he is blocking
the Senate from moving into a formal conference with the House on a broad
energy bill, saying he is worried the measure could hurt oil and gas
producers.

Cornyn said he placed a "hold" on a motion by Senate Majority Leader
Harry Reid, a Nevada Democrat, to enter a conference because the legislation
would shift tax breaks away from oil and gas companies and toward development
of renewable energy sources. A hold is an informal practice under which any
senator may inform a floor leader that he does not want a particular measure
to be considered by the full Senate.

Cornyn on Friday first blocked the motion because he said many
Republicans had already left the chamber and were unable to consider it. But
Cornyn told Platts Tuesday that he had informed Senate Minority Whip Trent
Lott, a Republican from Mississippi, that he is "putting the hold back on."

Cornyn said he opposes provisions in both the Senate and House measures
that would transfer credits from oil and gas to renewables. "If the House
writes the bill, it is going to be even worse than the Senate bill," he said.

Informal talks on energy legislation would be better than going to a
formal conference under these circumstances, according to Cornyn. "We'll keep
talking if someone has some good ideas," he said.

A spokesman for Reid confirmed that Republicans are still blocking
efforts to get to a formal energy bill conference. "The ball is in their
court," he said.

The Senate's $28 billion package of tax breaks failed to get the 60 votes
needed to clear the chamber. But the House passed its $16 billion measure. A
formal conference on the energy bill would include the House-passed tax breaks
and Cornyn said he is worried that deals cut in a conference would "leave
energy producers in my state holding the bag."

--Cathy Cash, cathy_cash@platts.com