GOULDSBORO, Maine (AP) — A state agency in Maine has terminated an application for a 120-acre salmon farm opposed by lobstermen in Frenchman Bay.

American Aquafarms, which was notified of the decision April 19, proposed a pair of 60-acre, 15-pen sites that together could produce 66 million pounds of Atlantic salmon a year.

The Department of Marine Resources said the Portland-based company backed by Norwegian investors failed to find a state-approved hatchery for salmon eggs for the operation. The company also failed to prove the hatchery met requirements of state law for fish health and g...