Well after asking Christopher Taylor about the story of DA3. He told me that he did not know the story and did not know who to contact. Therefore I told him to ask Herve or Eric Caen, or just look through Interplay's records. He did, however, tell me that the game was in the works at one time.
Now, in December 31st Ballerium was canned. So they likely started work on Dark Alliance 3 after that in 2005. It was probably about 25 % done when Interplay canned Dark Alliance 3 as they were not able to fund the game. Interplay themselves were likely developing the game and not Black Isle Studios as Black Isle's last game came out after the company's closure.