Sure, ok, I'm sure that will be persuasive in a federal court of law. Because Utah just randomly shuts off water to other facilities all the time. This is too cute by half, and is precisely the situation the court addressed nearly 200 years ago in McCulloch. There Maryland was simply trying to "tax out of state banks" - but as in this case, the actual motive was easy to figure out.
It depends on the water law in Utah.
Most easterners are utterly ignorant of wester water law. There’s more kinks and tricks embedded in western states’ water law than most people can possibly realize. Things like “best use” and “seniority” can trump even the federal government.
BTW, while the Feds control much western land, they don’t control the water, especially sub-surface water. That’s controlled by the state engineers in the various states.