The Salish Sea at sunset

Canadian Gas Company Appeals Denial of Expansions at Ferndale LPG Terminal

Following a win by Friends and 5 partner ENGOs, represented by Earthjustice, AltaGas is asking Skagit County Superior court to overturn the decision to require a fair environmental review of the terminal’s expansion.

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“We are disappointed AltaGas has chosen to keep fighting this rather than work with the County and the community on finding solutions,” said Eva Schulte, Executive Director, Friends of the San Juans. “We think that there is a way for this terminal to co-exist with the people and wildlife of the Salish Sea, but it requires the parties to work together, instead of trying to overturn the Hearing Examiner’s commonsense decision in court. It is more important than ever to ensure both human and environmental safety with expansive and unpermitted projects.”

AltaGas, the Canadian company that operates a liquefied petroleum gas (LPG) import and export terminal in Ferndale, filed an appeal to the decision made by the Whatcom County Hearing Examiner in March rejecting the permit for AltaGas’ 31 prior unpermitted and 2 new fossil fuel projects that would allow for continued expansions of the terminal’s operations at Cherry Point. The Hearing Examiner sided with six local environmental nongovernmental organizations (ENGOs) and ordered the County to redo its flawed analysis of the impacts of the projects at the terminal.

The decision was an important victory for the Salish Sea, requiring the County to reassess how expansions at the AltaGas terminal are likely to impact nearby communities, marine and coastal ecosystems, and the endangered species that live there. The Hearing Examiner concluded that the County erroneously issued a permit to AltaGas for the projects – carried out by the company during a moratorium on fossil fuel expansions – accepting AltaGas’ own conclusion that the projects did not increase the terminal’s ability to handle and transport more LPG. This assumption led to the faulty conclusion that there would be no significant environmental impacts associated with the projects. After three days of rigorous testimony and debate at the Whatcom County Courthouse in January, the Hearing Examiner disagreed with AltaGas and remanded the County to do a new assessment.

Rather than working with Whatcom County and assisting in a new analysis, AltaGas (“ALA Energy”) filed an appeal last week with the neighboring Skagit County Superior Court, rather than opting to bring the issue back to court in Whatcom County where the terminal is located and where the initial appeal was filed. Given that the decision is already headed back to court, the ENGOs filed a narrow appeal of their own, asking to revisit a section of the ruling that restricts the geographic scope of the new assessment.

What Happens Next?

Over the next few months, both parties will submit arguments to the Skagit County Superior Court. A hearing is scheduled for June 26th, 2026, to revisit the appeal.

Additional Information

Kelp beds in the Salish Sea

Image: Kelp beds in the Salish Sea provide critical habitat for fish and other animals and face severe threats from fossil fuel expansions in this shallow inland sea.