So what was the real reason? - well in this startling interview Whitley Strieber (from UknownCountry.com) talks with Bill Birnes from the show to ask why.
What did it have to do with the Dulce episode?
Incase you missed it here is the Dulce episode that Bill Birnes said got the Show cancelled. Here are screen captures of the strange cow fetus with the human shaped head(image) that the shows producers deliberated over showing and that Bill said "upset" many people in high places.
It would be good if someone who know stuff about cow fetus's to compare what this image is compared to normal ones.
He's also right about the Human-Animal Hybrid Prohibition Act as it was introduced around mid 2009 , a few months after this episode aired in Rate this posting: