Coop goes over the case:
"Diane, it’s time to lay this all out as we now have it. I’ll cut right to the events at the cabin. At or about 1 A.M., on the night of the murder, Leo Johnson, Laura Palmer, Jacques Renault and Ronette Pulaski arrived at Jacques cabin together. The four of them were heard passing by the cabin of the Log Lady."
"Upon reaching Jacques, they partied, drugs and liquor were consumed, Laura was tied up and had sexual relations with both Leo and Jacques. Waldo, Jacques bird, was let out of his cage and attacked Laura. Leo and Jacques fought. Jacques went outside and passed out. When he came to, Leo and the girls were gone. What none of them knew, was that a third man was outside watching. He was heard passing by the Log Lady’s. I believe that Leo then left alone, leaving Laura tied up, at which time, the third man entered the cabin."
"Several things support the notion that Leo was not involved in the actual murder. The strongest of which, is that on the night of the Teresa Banks murder, Leo Johnson was in jail, in Hungry Horse, Montana, on assault charges. The third man then took Ronnette and Laura to the train car on foot. Once inside, he killed Laura, a process that took him over an hour. During which, suffering from a severe blow to the head, Ronette escaped unobserved."
"Five miles down the tracks from the train car, Deputy Hawk found a blood soaked rag and several scraps of bleached paper. The blood on the rag matches that used to write the note in the train car. ‘Fire Walk With Me.’ The blood was not Laura’s or Ronette’s, and it wasn’t Jacques or Leo’s, either. It was a rare type, AB negative, and it belongs to the man who wrote that note. The third man. The killer."