I have used lace rock in the past. It is an igneous rock. It is a very common aquascaping rock in fresh water also used in terrariums. I have seen it used as the only rock in multiple salt tanks also from reef to fish only .My 75g display refugium was entirely done with lace rock. It is very porous and will easily house beneficial bacteria and micro crustaceans. Unless you got really unlucky and the rock was some how contaminated its not the issue. As other have stated your tank is cycled it is producing nitrates. I also believe as others have alluded to your fish guy is not doing it right. To have nitrates in the 100 range is not good. Will it immediately kill all your fish? no but slowly poison them? yes. Your well water needs to be figured out for sure. Also the entire test gambit needs to be done and posted to help other help you. UGF has been used for ever are there better ways absolutely. Will it work yep not a doubt. People run hobs, cans, ugf, rufg, sumps, all manner of filtration that has worked in the past and still does today. You need to properly maintenance your specific type of filtration.