August 21, 2019 - Would-be builders of a massive coal export terminal, to be located along the Columbia River in Longview, Washington, suffered a severe setback Tuesday in court.

The Washington State Court of Appeals ruled that the Department of Natural Resources had a valid reason when it refused to lease state-owned aquatic lands to Millennium Bulk Terminals.

A coal train

The DNR had noted the bankruptcy of Arch Coal, one of Millennium's owners, and the developer's initial failure to disclose that it wanted to build the largest coal terminal on the West Coast.

The terminal would receive as many as 16 coal trains a day from the Powder River and Unita Basins in Wyoming, for shipment to Asian markets.

"DNR's careful consideration of Millennium's financial conditions and business reputation was especially reasonable given the circumstances surrounding the potential sublease," the appellate court said in its opinion.

"At the time DNR made its decision, coal market conditions were not promising, with United States coal production dropping."

As well, noted the court, Millennium "intentionally misrepresented the scope of its plans for the property in 2011 . . . Millennium intentionally concealed the extent of its plans for the coal export facility in order to avoid full environmental review."

The site, on the Columbia River, formerly housed an aluminum plant, built by Reynolds Metals during World War II. A picture from the plant showed President Franklin Roosevelt being driven through the smelter, cigarette holder at a jaunty angle.

Supporters of the project have made a case that construction of the terminal would be accompanied by needed environmental cleanup.

But environmental groups have passionately opposed Millennium. It is the last coal port project standing, especially after the demise of the Gateway Pacific export terminal proposed for Cherry Point north of Bellingham.

"DNR manages state lands for the benefit of the public, not for the benefit of hedge fund investors gambling on coal exports," said Marisa Ordonia, attorney for Earthjustice. "The Court of Appeals confirmed DNR was appropriately cautious about exposing Washington to a damaging and risky coal export terminal, particularly given Millennium's deception early in the state permitting process."

The aquatic lands lease isn't Millennium's only permit problem.

The state Department of Ecology refused to approve the project, specifically Millennium's application for a water quality permit to fill 24 acres of wetlands and dredge 41.5 acres of Columbia River.

"There are simply too many unavoidable and negative environmental impacts for the project to move forward," State Ecology Director Maia Bellon said in denying the permit.

The battle over the Millennium project has taken place against a backdrop of bankruptcies in the coal industry, from Wyoming to West Virginia, and closure of coal plants. The Trump administration's bluster about reviving coal has largely come to naught, a victim of economics and the climate crisis.

Millennium's response to the Court of Appeals decision will be added to this story when it is received.