The Skagit County Prosecutor's Office dropped all charges against a 24-year-old man Monday who was originally thought to be involved in an arson that killed two children. A 31-year-old woman remains in custody pending charges.

A judge set bail at $2 million earlier this month.

The July 16 fire broke out when five people were home and all but two got out. An 8-year-old girl and 6-year-old boy died in the fire.

Formal charges against the woman have to be filed by Aug. 18. She's currently being held on a warrant that will expire that day if charges aren't filed.

Deputies found the car in which the man and woman were last seen, and there was a gas can in the backseat. Initial testing at the site showed gasoline was used in the arson.

<p>Firefighters battled the house fire in Skagit County for 14 hours before it was out. (Photo: Courtesy Barb Peterson)</p>

Defense attorneys called the evidence “pretty slim,” saying investigators cannot link the accelerant used in the fire to their clients.

The man and woman claimed they were asleep in a tent behind a home in Sedro-Woolley when the fire took place, and did not wake up until law enforcement arrived Saturday morning.

The female suspect has a previous arson conviction from 2014. She lit her ex-boyfriend’s clothes on fire after he cheated on her, according court to documents.