Steve does not use his remaining Command Counter. He "passes".
Nicholas uses the Command Counter he obtained last turn from playing Warfare and activates the "Qucen'n/Rarron" system.
He then moves his Carrier, Destroyer and Ground Forces from the adjacent system and invades these 2 neutral planets. Flags were added to the planets he pulled the Ground Force units from and he added the 2 new planet cards, exhausted, in his player area. Nicholas also adds 2 more Trade Goods.
Steve has passed, so play resumes with Nicholas.