Washington (Platts)--25Jul2008

Having blocked a bid by US Senate Democrats to wring speculation out of
the oil and natural gas markets, Republicans senators on Friday said they
would not allow the chamber to take up any new legislation until they can get
a vote on their proposal to open more federal land, including the Outer
Continental Shelf, to energy development.

Republicans complained that Senate Majority Leader Harry Reid would allow
them to offer only one amendment to the defeated bill (S. 3268), and the
amendment would have needed 60 votes to be adopted. "The only consent
agreement that he's proffered would have allowed a couple of votes,"
Republican Leader Mitch McConnell told reporters Friday.

Reid on Thursday said he in fact had offered the minority a handful of
individual amendments, but that offer had not been accepted.

In any event, Republicans now plan to vote against debating legislation
on low-income home heating assistance, business and renewable energy tax
credit legislation, and other items on the majority's agenda for the last week
before the month-long August recess.

A housing bill is expected to receive a vote this weekend, because it
enjoys special status as a "message from the House."

"Senate Republicans refuse to get off the subject [of energy]," said
McConnell Friday. "We want to stay on the issue until we get a result. We'll
be back here in September, and there will be other issues that we'll deal
with," the Kentucky senator said.

The Low Income Home Energy Assistance Program, which Reid would like to
begin debating over the weekend, is popular with Democrats and Republicans
from cold weather states. Senators Judd Gregg and John Sununu, both New
Hampshire Republicans, filed an amendment to the speculation bill dealing with
LIHEAP. Revenues for the heating assistance program would have been paid for
by rolling back a manufacturing credit that oil companies now enjoy.

The Republican proposal includes new taxes to pay for LIHEAP spending,
while a similar measure by Vermont Independent Bernard Sanders does not.
Republicans have consistently opposed paying for other legislation, like an
extension of renewable energy tax credits that are set to expire in December.
Reid plans to ask for a debate on Sander's bill.

Gregg stood next to McConnell Friday when the leader announced that his
caucus would not consider any new legislation, including LIHEAP

"I believe very strongly that the best way to address the issue of making
energy affordable for low-income people in New England...is to address the
issue of supply," Gregg told reporters. "That's what's going to bring down the
price of energy."

Asked whether he expectsd Republicans to block the next item on his
agenda, Reid said "[w]e have 13 Republican sponsors of the LIHEAP legislation.
And I think it's going to be pretty tough for them to go home and tell their
constituents that, 'Reid did some things procedurally I didn't like, so I
voted against your ability to be warm this winter.' It's a pretty tough vote."

Sununu, who is in a competitive race for reelection, did not attend the
press event.

--Jean Chemnick, jean_chemnick@platts.com