Other developments--Dr. Jacoby makes his return from sabbatical and seems to be in a much better place; Catherine reveals herself to Sheriff Truman and explains how she survived the fire; Ed helps Audrey get enrolled in high school, as still believes herself to be a teenager, and; the mayor and his brother get into a public argument about women at Leland’s funeral gathering.
The big development in this episode however, is with Cooper. As he starts preparing to leave Twin Peaks now that his investigation is over, he receives a visit from Agent Hardy of FBI internal affairs. Cooper is placed on suspension and accused of not only violating FBI regulations, but being involved in drug smuggling. These accusations stem from the incident during which he and Truman crossed the Canadian border to rescue Audrey Horne (Jean Reneau is setting up a frame job to get back at Cooper).
Cooper takes everything in stride, knowing he did nothing illegal. He accepts an invitation to go night fishing with Major Briggs, which is where the biggest left turn of the episode happens. While they are out in the woods, Cooper goes to answer the call of nature, and Major Briggs is seemingly abducted by aliens.
Just another eventful day in Twin Peaks...