Steve plays the Civil Defense Action Card. This card Steve place 2 PDS on the planet Lazar.
Steve cannot use these PDS to fire at ships in the adjacent Mecatol Rex system because that would require he activate Mecatol Rex. The previously played Diplomacy Strategy Card by Nicholas forbids activating Mecatol Rex.
Steve plays the Imperial card and gains 1 point.
Even though Nicholas passed, he may still perform the Secondary Ability of this Strategy Card.