A judge in Washington state ruled that an agency acted arbitrarily when it blocked a portion of a proposed coal export terminal.

The $680 million Millennium terminal would ship coal from Montana, Wyoming and other states to Asia, and could boost U.S. coal exports by 40 percent.

The October 27 ruling overturned a decision made by outgoing Public Lands Commissioner Peter Goldmark early in 2017. As head of the Department of Natural Resources, Goldmark had denied permission for the project to use docks at a former aluminum smelter, saying Millennium hadn't provided enough information about its finances, among other concerns.

"This decision validates our argument that when the law is fairly applied and facts are impartially weighed, Millennium's project meets environmental standards and should be approved," Wendy Hutchinson, the company's vice president of government and public affairs, said in a news release after Friday's decision.

The state Ecology Department in September denied developers a water quality permit, prompting a lawsuit from Millennium. The Department of Natural Resources in late October denied it a site plan, a decision the developers are also trying to remedy. The development also faces a hearing on whether it will be granted a county shoreline permit.