Coal export terminal suffers second big setback: State permit is denied



less A coal train passes an oil train after tanker cars derailed in Magnolia two years ago. The prospect of mile-long coal trains, passing through major Washington cities, ignited opposition to the giant proposed Gateway Pacific coal export terminal north of Bellingham. The project has now been rejected by both the Arms Corps of Engineers and the state Department of Natural Resources. A coal train passes an oil train after tanker cars derailed in Magnolia two years ago. The prospect of mile-long coal trains, passing through major Washington cities, ignited opposition to the giant proposed ... more Image 1 of / 1 Caption Close Coal export terminal suffers second big setback: State permit is denied 1 / 1 Back to Gallery

The controversial proposed Gateway Pacific coal expert terminal suffered its latest body blow on Monday with denial of its application for an aquatic land lease at the Cherry Point site north of Bellingham.

The denial follows and stems from rejection of the terminal last month by the U.S. Army Corps of Engineers, which found that the terminal would impact treaty fishing rights of the Lummi Nation.

Because the Corps denied a permit, and the project must have "all necessary federal permits," the state Department of Natural Resources "cannot approve the lease application," State Land Commissioner Peter Goldmark wrote to project developers.

"Accordingly, DNR will take no further action on the application," Goldmark added.

The $700 million coal terminal, designed to export as much as 48 million tons of coal a year, once seemed to be on the path to approval. It was to be located in an industrial area that is already home to two oil refineries and a big aluminum plant.

The hard-pressed coal industry was anxious to export coal mined in Montana and Wyoming. The promise of jobs secured labor and business support. A Bellingham community leader served as the project's public face. Public affairs and law firms with liberal Democratic roots were hired as advocates and fixers.

Opposition grew, however, first in Bellingham and later from Puget Sound area cities worried about mile-long coal trains. Environmental activists grow concerned over climate impacts, that U.S. coal would keep polluting Chinese power plants in operation. China is the world's largest source of greenhouse gas emissions.

"This (rejection) is a reflection of three amazing currents that built a wave," said State Sen. Reuven Carlyle, D-Seattle, who grew up in the Bellingham area and schooled himself in technical aspects of the proposed terminal.

"The first was (opponents') pure, grassroots civic activism. The second was the deep respect for Native Americans' tribal fishing rights. The third was realization that a 19th Century economy is unhealthy, dangerous and outmoded. We need to move beyond fossil fuels."

A key signal came more than two years ago, when a subsidiary of Goldman Sachs sold its 49 percent share in the parent company of SSA Marine, the Seattle-based terminal company pressing for the coal port.

The sale came soon after Goldman, in a paper on investing, said: "Earning a return on incremental investment in thermal coal mining and infrastructure capacity is becoming increasingly difficult."

The Lummis, a tribe once pushed around, filed the key objection with the Army Corps of Engineers.

The latest turn down by the Department of Natural Resources brought this reaction from Tim Ballew II, chairman of the Lummi Indian Business Council:

"This is a historic moment in Washington's history. By denying Pacific International Terminal's request for an aquatic lands lease for DNR-managed aquatic lands at Cherry Point, we take another huge step toward permanently protecting Lummi's sacred site.

"By affirming the decision made by the U.S. Army Corps of Engineers, the State of Washington recognizes the devastating impact a terminal at Cherry Point would have on Lummi's treaty rights."

The Corps, in its decision last month, said it would reevaluate the project only were the Lummis to reverse position and acquiesce to it.

Not likely, given Ballew's statement Monday:

"Because of Commissioner Goldmark's decision, the waters we rely on to feed our families, for our ceremonies and for commercial purposes remains protected. But this is more than a victory for our people -- it's a victory for treaty rights."

The battle over one remaining coal export project, the Millennium Bulk Terminals proposal at Longview, goes on.