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Feds shelve permit for lake project after Utah drops out



01 May 2008 @ 11:54 am EST

BEAR LAKE, Utah (AP) - Federal regulators say they're setting aside an application for a hydroelectric project near Bear Lake in Utah.

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The Federal Energy Regulatory Commission says the Hook Canyon project appears dead because the state stopped negotiating an easement on public land.

A company called Symbiotics LLC wants to produce electricity by using and returning water from Bear Lake.

Gov. Jon Huntsman told state officials last week to stop negotiating an easement. Huntsman says he's concerned about harming the lake's water quality.

Symbiotics has denied any drastic or irreversible harm to Bear Lake. Company executive Brent Smith could not be reached for comment Wednesday.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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