Citing environmental and economic concerns, Huntsman last week directed the Division of State Parks and Recreation to reject a request by the developer, Logan-based Symbiotics LLC, for an easement across state park lands to access the project's location on Bear Lake's eastern shore.

In a letter to the company that was released Wednesday, the Federal Energy Regulatory Commission (FERC) said the Hook Canyon project was being put on hold, "effective immediately."

J. Mark Robinson, the director of the Office of Energy Projects at FERC's Washington, D.C., office, said that in view of that state's decision "it appears you cannot construct your proposed project."

Symbiotics has 10 days to get rights to use Utah State Park lands that would be included within the project boundary or the project is dead as currently proposed, he wrote.

The company has proposed pumping about 21,000 acre-feet of water out of Bear Lake to generate power for sale during peak-demand hours, but the project has run into widespread opposition. Critics charge it will endanger the lake's native fish species and stir up the bottom of the lake, potentially robbing it of its signature azure color.

Members of Bear Lake Watch, a nonprofit group fighting the Hook Canyon project, call the state's opposition a significant and perhaps decisive defeat for the developer. They say the feds should kill the project outright, no matter what alternatives may be forthcoming.

"If the State of Utah is not willing to give a lease or easement to state property, FERC should deny any further processing of this license because, no matter where they try to route the tunnel, they have to come out on the bed of Bear Lake, which is managed by the state," said Claudia Cottle, co-director of Bear Lake Watch.

Symbiotics CEO Vince A. Lamarra says the state's opposition is disappointing because researchers may now be stopped before the process really ever gets started.

"We have always maintained that if our studies would indicate there was harm to Bear Lake that we would stop the process right there," Lamarra said Wednesday. "Our intent is to still do those studies because our intent is to demonstrate that we can build a project without any harm to Bear Lake."

Lamarra said the project has obviously been "set back," but his company will move forward after evaluating whether to reconfigure the Bear Lake project or look at alternative sites that could provide energy to the Wasatch Front.

"Utah needs this energy," he said.

abrunson@sltrib.com