A Second Court Rejects Cooke Aquaculture’s Challenge Over Termination of Port Angeles Net Pen Lease

Port Angeles Netpen managed by Cook Aquaculture – Photo provided by Wild Fish Conservancy

Cook loses another one. Very good news.

Media Contacts: Kurt Beardslee, Executive Director, kurt@wildfishconservancy.org

DECEMBER 17, 2021—In another legal defeat for Cooke Aquaculture, a second Washington state court has rejected efforts by the seafood giant to sue Washington state over the termination of the company’s lease for their Port Angeles netpen operation. On Tuesday, the Court of Appeals issued an opinion affirming a lower court ruling upholding the Department of Natural Resources’ (DNR) decision to terminate the lease.

The Court’s decision represents another major step forward in the public’s hard-fought efforts to remove this dirty industry from Puget Sound waters,” says Kurt Beardslee, Executive Director. “I applaud the Courts for putting our natural resources and the interest of the public ahead of this powerful corporate interest.”

The court said:

We hold that the superior court properly applied the arbitrary and capricious standard of
review because DNR’s decision to terminate the lease was administrative, and that DNR’s decision to terminate the lease was not arbitrary and capricious. Accordingly, we affirm the superior court’s final order upholding DNR’s lease termination decision.

This week’s decision concludes a nearly four-year appeal process that began in early 2018 when Cooke filed suit against DNR, arguing the agency had wrongfully terminated the lease ahead of the 2025 expiration date. In 2020, a Thurston County Superior Court Judge rejected Cooke’s challenge and the company appealed the decision to the Court of Appeals which issued the opinion this week.

DNR terminated the lease in December 2017 after an investigation revealed various violations at the Port Angeles facility,including operating outside of its boundaries, failure to pay rent timely, and not operating the facility in a safe condition.Shortly following the termination, the net pens were completely removed from Port Angeles Harbor.This week the Court overwhelming rejected Cooke’s opinion that the decision to terminate the lease was arbitrary and capricious, finding DNR’s decision “was based on facts supported by substantial evidence, pursuant to plain terms of the contract, was well reasoned and made with due regard to the facts and circumstances.”Cooke is also suing DNR in a separate ongoing lawsuit over the early termination of the company’s Cypress Island lease.The lease was terminated following the 2017 catastrophic collapse of a Cooke net pen that released over 260,000 nonnative Atlantic salmon infected with an exotic virus into Puget Sound. A comprehensive investigation by Washington agencies found Cooke at fault for the collapse and Cooke was also required to pay $2.75 million in Clean Water Act violations in a lawsuit brought by Wild Fish Conservancy. The collapse also resulted in Washington passing a landmark and widely celebrated law banning all nonnative Atlantic salmon finfish aquaculture, Cooke’s only enterprise at the time.“I hope the public will join me in thanking Commissioner of Public Lands Hilary Franz and her department for their unwavering commitment to protecting Puget Sound in the face of Cooke’s meritless, costly, and time-consuming lawsuits,” says Beardslee. “Under Commissioner Franz’s leadership, DNR has a proven record as the only regulatory agency in Washington willing to take bold action to hold this dangerous industry accountable.”In a controversial decision, the Washington Department of Fish and Wildlife permitted Cooke in 2020 to begin rearing steelhead in their Puget Sound net pens where the company holds valid leases. With the Cypress Island and Port Angeles leases terminated by DNR, Cooke only holds valid leases for two net pen sites in Puget Sound. Both leases will expire next year and Cooke will need to apply and secure new leases from DNR to continue operating in Washington. In a letter to Cooke earlier this year, DNR warned the company that the agency has not yet decided if they will issue Cooke new leases.“This week’s Court decision could not have come at a more important time. With Cooke’s only existing leases set to expire next year, DNR is in a critical decision-making period that will determine the future of this industry in Puget Sound,” says Beardslee. “

The Court’s decision removes any opportunity for Cooke to try and recover millions in lost revenue from DNR, which would have provided Cooke important leverage to potentially negotiate their future and new leases in our public waters.”

In July 2020, Wild Fish Conservancy submitted official applications to DNR requesting to lease all of the sites used by Cooke for commercial net pen aquaculture. This alternative proposal, the Taking Back Our Sound Restoration Project,seeks to hold these waters in public trust for the sole purposes of restoring these polluted sites to their natural state and restoring the public’s access to over 130 acres of Puget Sound that have been restricted for private profit for over three decades. This proposal is supported by a broad-based coalition of over 100 businesses and organizations and over 6,000 individuals who have signed onto an ongoing petition to Commissioner Franz calling on DNR to not extend, renew, or reissue leases for commercial net pen aquaculture in Puget Sound and to instead lease these waters for this unprecedented restoration project.“The expiration of these leases comes only once in a decade and offers the public a rare opportunity to work together to take back our sound from the net pen industry, “says Beardslee. “Cooke’s first lease will expire in March 2022, there foreit’s critical at this time that we continue to work together to call on DNR to make the right decision for wild fish and the health of Puget Sound.

One Response

  1. Woohoo! That’s fantastic news and very timely.

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