Nicholas plays the Subsidized Industry Political Card. This allows him to build a Space Dock on any planet he controls. The card is discarded and he adds a Space Dock to Abyz. The card states no restrictions on which planet may be used, just that it be a controlled planet. Nicholas chose a planet he just invaded.
Nicholas has no Command Counters left to play from his Command Pool. He "passes".
Play resumes with Steve. He has no actions left and "passes" too. The game enters the Status Phase for Round 3.