OLYMPIA, Wash. (AP) — Would-be builders of a massive coal export terminal along the Columbia River at Longview suffered a severe setback in court.

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

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 Wyoming, for shipment to Asian markets.

The court also said Millennium "intentionally misrepresented the scope of its plans for the property in 2011."

Supporters of the project say construction of the terminal would be accompanied by needed environmental cleanup. But environmental groups opposed Millennium.

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