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Post-construction legal challenges[edit]
Link: Churchill Falls Generating Station

Original text:
The Churchill Falls hydroelectric plant development was undertaken in the absence of any agreement with the Innu people and involved the flooding of over 5,000 km2 (1,900 sq mi) of traditional hunting and trapping lands. An agreement signed between the government of Newfoundland and Labrador and the Innu offered the Labrador Innu hunting rights within 34,000 square kilometres of land, plus $2 million annually in compensation for flooding.

In Newfoundland and Labrador the contract between CFLCo and Hydro-Québec has created a great deal of resentment. Events unforeseen at the time of the 1969 negotiation have greatly increased Hydro-Quebec's profit margin on the fixed price of energy from the station.

The Government of Newfoundland and Labrador has unsuccessfully challenged the contract in court. In November 2018, the Supreme Court of Canada rejected a bid to force Hydro Quebec to reopen the contract before 2041, deciding that the high profits of Hydro-Québec did not justify re-opening the contract. The majority decision held that the unforeseeability of future energy price increases was a risk that the Churchill Falls Corporation had assumed when the contract was signed and the court could not force the parties to re-open the contract. Gascon additionally said that unforeseeability would justify overturning the contract only if it made the contract less beneficial to one party and not in this case, where it merely made the contract more beneficial to one party (Hydro-Québec).

In 2019 Quebec's highest court, the Quebec Court of Appeal ruled that Hydro-Québec's right to sell Churchill Falls energy had a monthly cap, simplifying the management of water resources for the Lower Churchill Project's Muskrat Falls station.

Newfoundland and Labrador will be able to renegotiate the project in 2041, when the contract expires.

Edited text:
In Newfoundland and Labrador, the contract between Churchill Falls (Labrador) Corporation (CFLCo) and Hydro-Québec has created a great deal of resentment. Events unforeseen at the time of the 1969 negotiation have greatly increased Hydro-Quebec's profit margin on the fixed price of energy from the station.[cite]

The Government of Newfoundland and Labrador has unsuccessfully challenged the 1969 contract in court. In November 2018, the Supreme Court of Canada rejected a bid to force Hydro-Québec to reopen the contract before 2041, deciding that the high profits of Hydro-Québec did not justify re-opening the contract. The majority decision held that the unforeseeability of future energy price increases was a risk that the CFLCo had assumed when the contract was signed and the court could not force the parties to re-open the contract. Gascon additionally said that unforeseeability would justify overturning the contract only if it made the contract less beneficial to one party and not in this case, where it merely made the contract more beneficial to one party (Hydro-Québec).[cite][cite]

In 2019 Quebec's highest court, the Quebec Court of Appeal ruled that Hydro-Quebec's right to sell Churchill Falls energy had a monthly cap, simplifying the management of water resources for the Lower Churchill Project's Muskrat Falls station.[cite]

Newfoundland and Labrador will be able to renegotiate the project in 2041, when the contract expires.[cite]

Legal cases brought forward by the Innu Nation
The Churchill Falls hydroelectric plant development was undertaken in the absence of any agreement with the Innu people, but has resulted in significant damage to their traditional territory. The plant caused flooding of over 5,000 km2 (1,900 mi2), which damaged the habitats of many animals, disrupted caribou migratory routes, and drowned wildlife such as beavers. Furthermore, Innu burial sites and hunting grounds were destroyed, causing irreparable damage to the traditions and livelihoods of the Innu people. These actions infringe on the aboriginal rights and treaty rights of the Innu people.

In February 2010, the Government of Newfoundland and Labrador and the Innu Nation initialed an agreement to compensate for the negative impacts of the Churchill Falls plant. The agreement offered the Labrador Innu hunting rights within 34,000 km2 (13,127 mi2) of land, plus $2 million (CAD) annually in compensation from Nalcor Energy.

In October 2020, the Innu Nation of Labrador filed a $4 billion (CAD) claim against Hydro-Québec through the Supreme Court of Newfoundland and Labrador. The $4 billion (CAD) figure represents a fair share of Hydro-Quebec's $80 billion (CAD) profits over the 50-years that the hydro-electric plant has been in operation.

The timing of this lawsuit comes as the Innu Nation seeks to formalise a land claims agreement with the Government of Canada.

Edits:

 * 1) Added links for "Innu people", "Newfoundland and Labrador", "Hydro-Quebec", "Supreme Court of Canada", "Lower Churchill Project", "Churchill Falls (Labrador) Corporation"
 * 2) Spelled out acronym (CFLCo)
 * 3) Added sentence: The flooding damaged the habitats of many animals, disrupted caribou migratory routes, and drowned beavers. Furthermore, Innu burial sites were destroyed, causing irreparable damage to the traditions of the Innu people.
 * 4) Added sentence: On October 6, 2020, the Innu Nation of Labrador announced that it had filed a 4 billion CAD claim against Hydro-Québec in the Supreme Court of Newfoundland and Labrador.

Hydro-Quebec
Link: Hydro-Québec

Social effects and sustainable development[edit]
Of all Cree communities, Chisasibi was most affected by the James Bay hydroelectric development projectCrees living on Fort George island resettled to the new village on the left bank of La Grande River in 1980–1981.

Another major environmental concern relates to the population of areas affected by hydroelectric development, specifically the Innu of the North Shore and the Cree and Inuit in Northern Quebec. The hydroelectric developments of the last quarter of the 20th century have accelerated the settling process among Aboriginal populations that started in the 1950s. Among the reasons cited for the increased adoption of a sedentary lifestyle among these peoples are the establishment of Aboriginal businesses, the introduction of paid labor, and the flooding of traditional trapping and fishing lands by the new reservoirs, along with the operation of social and education services run by the communities themselves under the James Bay and Northern Quebec Agreement.

Some native communities, particularly the Crees, have come to a point "where they increasingly resemble the industrialized society of the South", notes an Hydro-Québec report summarizing the research conducted in the area between 1970 and 2000. The report adds that a similar phenomenon was observed after the construction of roads and hydroelectric plants near isolated communities in northern Canada and Scandinavia. However, growing social problems and rising unemployment have followed the end of the large construction projects in the 1990s. The report concludes that future economic and social development in the area "will largely depend on the desire for cooperation among the various players".

After the strong rejection of the Suroît project and its subsequent cancellation in November 2004, Hydro-Québec, under the leadership of its new CEO Thierry Vandal, reaffirmed Hydro-Québec's commitment towards energy efficiency, hydropower and development of alternative energy. Since then, Hydro-Québec regularly stresses three criteria for any new hydroelectric development undertaken by the company: projects must be cost effective, environmentally acceptable and well received by the communities. Hydro-Québec has also taken part in a series of sustainable development initiatives since the late 1980s. Its approach is based on three principles: economic development, social development and environmental protection. Since 2007 the company adheres to the Global Reporting Initiative, which governs the collection and publication of sustainability performance information. The company employs 250 professionals and managers in the environmental field and has implemented an ISO 14001-certified environmental management system.

Innu Nation Claim Against Hydro-Québec
Further information: Churchill Falls Generating Station

In October 2020, the Innu Nation filed a claim against Hydro-Québec.

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