Yes this item has object handles
Make sure you keep picking up the stones, as they are place holders, for spawn locations for this quest.
Not 100% sure if the white stick is found in Fel, but you won't know until you look...
As this quest is a tough one, and the stick is used to make a new--quest related item-- for a quality reward, I feel it is unlikely you are going to find a locked down whitestick. Not to mention this defeats the purpose of the Quest creators original idea for the quest. They want you to wonder around screaming... WHITESTICK are you here!
Since I found my whitestick without really trying... it spawned behind my house... I don't really feel the whitestick pain. Good luck.
--Sturger--