Ok did some more searching as I was looking for Feir'Dal weapon recipes that the p99 wiki mentions but doesn't list (assuming it's implemented, haven't tried as of yet, don't see them anywhere on this wiki, though I see them on zam with comments back to summer of 2001).
Came across this:
http://www.less3d.com/smithing.htm
In this instance, lists trivial at <150 (likely from ~early 2001) but more importantly also says return of armor on dye failure.
But it reads: "You CAN fail on this part of the process - (trivial <150)...
...On a failure, the armor will be returned to you, undyed, and you lose the Dye, Jar of Acid and Lacquer.
Anyway, even using custom year range on google, it turns up little on the subject. Wherever these sites got this info I can only guess at this point, regarding the source.