AN SMA NOT TALKING TO THE TWR CROSSED RIGHT THROUGH THE TFC PATTERN JUST MISSING RPTR CLBING IN THE PATTERN.

Narrative

BELLINGHAM ARPT HAS A NON-FEDERAL CTL TWR. RWY 16 WAS IN USE WITH A R-HANDED PATTERN TO THE W. THIS PREVENTS OVERFLYING HOUSES TO THE E OF THE ARPT ON A L DOWNWIND. PATTERN ALT IS 1200 FT MSL. THE CLASS D AIRSPACE IS THE STANDARD CYLINDER 4.3 NM IN RADIUS UP TO 2500 AGL. ABOUT 2 MI TO THE W; THE NOODSACK RIVER ROUGHLY PARALLELS THE RWY. THE INCIDENT OCCURRED AFTER OUR FIRST TOUCH AND GO. WE WERE CLBING OUT; WHEN THE TWR CALLED OUT TFC. THE CTLR SOUNDED UNSURE BECAUSE HE WAS NOT TALKING TO THE TFC. THE CTLR JUST HAPPENED TO SEE THE ACFT. WHAT I HEARD WAS THAT A LOW WING ACFT WAS JUST E OF THE NOODSACK RIVER HDG SBOUND AT 1500 FT. I LOOKED; BUT DID NOT INITIALLY SEE THE TFC. THE STUDENT TURNED XWIND AT ABOUT 900 FT AND CONTINUED TO CLB. JUST AS WE REACHED PATTERN ALT; I SAW THE TFC DIRECTLY IN FRONT OF US; AT OUR ALT. THE ACFT WAS A WHITE MOONEY ABOUT 1 1/2 MI AWAY. WE IMMEDIATELY TURNED DOWNWIND; AND HEADED N. THE MOONEY WAS LOWER AND CLOSER THAN RPTED. IT DID NOT TRY TO EVADE US AT ALL. THE MOONEY WAS OPERATING ILLEGALLY. IT HAD NOT CONTACTED THE TWR AND WAS WELL WITHIN CLASS D AIRSPACE. HOWEVER; ON REFLECTION; I SHOULD NOT HAD PERMITTED MY STUDENT TO TURN XWIND UNTIL SEEING THE TFC OR ENSURING THAT IT WAS WELL CLR. WHEN I DID LOOK; THE MOONEY WOULD HAVE BEEN A GOOD DISTANCE BEHIND AND ABOVE US. IN THE CESSNA 172; THIS IS A BLIND SPOT. THE CTLR DID A GREAT JOB; HE JUST HAPPEN TO SEE THE TFC FOR US. IF HE HAD NOT ALERTED US; WE MIGHT HAVE GONE FURTHER OUT ON THE XWIND. YOU CANNOT STOP LOOKING FOR TFC EVEN AT CTLED ARPTS.