Bipartisan group broker energy deal in Senate

WASHINGTON (Reuters) - A bipartisan group of lawmakers is working on another comprehensive energy bill to try to break the Congressional deadlock over how to contain the price of gasoline, which looming as one of the biggest issues in U.S. elections, a Democratic aide said on Thursday.

Calling themselves the "Gang of 10," the Senators have held dozens of meetings over the past several weeks attempting to put together a bill that both parties can agree on.

"What they're trying to do, is to have the Senate come together on energy," a Democratic aide, who asked not to named, said.

The group of lawmakers is led by Sen. Kent Conrad, a North Dakota Democrat, and Sen. Saxby Chambliss, a Georgia Republican. They hope to propose a package including measures addressing supply issues, conservation and renewable energy before the Senate adjourns for its August recess on Friday.

They want to introduce measures that will help lower gasoline prices, said the aide. He also confirmed oil drilling proposals are being discussed.

The group faces an uphill battle since soaring fuel prices have made energy a top campaign issue on the campaign trail and a sharply divisive issue in Congress.

With Democrats generally favoring more conservation and using emergency oil reserves and Republicans wanting more drilling, it's not clear how many lawmakers will support a compromise on the range of issues.

"Republicans are going to continue to hold the Democrat majority here in Congress accountable throughout the month of August and beyond, until we get a vote on our American energy plan," Senate Republican Leader Mitch McConnell told reporters on Thursday.

In a last ditch effort on Thursday to make some progress on energy issues before leaving for their August recess, leaders of both parties tried to pass some of their energy bills under a Senate rule that requires every member of the Senate to approve the legislation. None of the bills passed.

On Wednesday, the House of Representatives failed to pass a bill aimed at reining excessive speculation and a bill extending tax credits for renewable energy and energy energy-efficiency tax credits failed to move forward in the Senate.

Republicans are pushing for legislation that would lift bans on drilling offshore and in the Arctic National Wildlife Reserve. They also support development of oil shale fields in the West.

Democrats, however, are opposed to opening restricted areas for oil production and want oil companies to use land already available to them. Democratic leaders have also called for the White House to sell oil from the Strategic Petroleum Reserve.

Time is quickly running out for any action to take place on energy with Congress expected to adjourn for a five-week break on Friday. When Congress returns in September, there will only be a few weeks before lawmakers leave again for a recess before the November elections.

Some of the other members of the "gang of 10" include Senators Ben Nelson, John Thune, and Lindsey Graham.

(Editing by Russell Blinch and Marguerita Choy)