I did read the article, which is why I asked for a quote. There was nothing in there saying that their storyline was approved by LFL -- or that they got any other form of approval or acknowledgment from LFL. Just that they were expanding upon LFL-approved storylines, much like any other fan fiction writer.

Curious, I skimmed through the Slashdot discussion and found no mention of LFL approving any storylines. Only that Lucas encourages (or at least doesn't discourage) Star Wars fan films. I didn't read the whole discussion, so I could've missed something.