There are alternatives to the Churchill Falls MOU's “bundling" approach, like a stand-alone Upper Churchill agreement without taking on the risk of Gull Island

There are alternatives to the “bundling” approach of the Dec. 12, 2024, Memorandum of Understanding, such as a stand-alone agreement on the Upper Churchill, without taking on the risks of Gull Island.

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What follows is an analysis of this approach to realizing the true wealth potential.

Certain principles should be established in preparation for any future negotiations. For example, the Province of Newfoundland and Labrador (the province) would retain sole control of the Churchill River, upper and lower, and would decide, in consultation with NL Hydro, when and if future enhancements/developments would be undertaken.

Further, the Upper Churchill Lease Act (1961) would be amended to modernize the rental and royalty obligations of users of the water resource and shorten the duration of future leases.

It has been speculated that the share of benefits so far from the Upper Churchill is 90 per cent in favour of Quebec, with one claim being that the value amounts to $28 billion. Assuming average annual energy purchases by Hydro Quebec of 32 billion kilowatt hours........

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