C-Suite reported yesterday the Pickens Plan would not pass because it could not get the votes to pass. Today sources tell CNBC it was pulled by Senate Majority Leader Harry Reid because he could not get enough votes for cloture.
Insiders say they were suprised Reid continued for so long with plans to bring the bill to the floor knowing full well even that before the midterm elections he lacked the votes.
Mike Cantrell, President of the Domestic Energy Producers Alliance, said they have known for quite sometime this bill would not make the cut.
"We spent Monday and Tuesday speaking with Senators and the overwheming indication why they were not in favor of this bill was that it was not paid for and it would raise the oil liability fund payments from 8 cents to 21 cents. That would translate into higher gasoline prices to consumers. It was a non-starter. I think there will be an effort to pass a scaled down version but it will have to be scaled down significantly. Orrin Hatch's bill is more ammenable and Reid does like Hatch's plan so we'll see as time goes on. We have no problem with the Pickens as long as you don't raise the price of gasoline for the consumers," Cantrell said.
If passed, this plan would have been a nice gift from the taxpayer to Pickens. According to a November 9, 2010 Raymond James report, Pickens has direct ownership (over 50 percent) in Clean Energy Fuels(CLNE) and as a result of his ownership is able to "exert a high degree of influence on all matters requiring stockholder approval". » Read yesterday's story