Hydro-Québec lawsuit won't affect Muskrat Falls: Derrick Dalley

The Newfoundland and Labrador government insists an ongoing legal dispute with Hydro-Québec will not impact Muskrat Falls.

Hydro-Québec has sued over the renewal terms of the Upper Churchill power contract in 2016.

As CBC News reported in May, Hydro-Québec wanted to question two Nalcor vice-presidents, under oath, as part of that lawsuit — but Nalcor said no.

• Hydro-Québec seeks N.L. court order forcing Nalcor execs to obey subpoena 

On Monday in the House of Assembly, Liberal Leader Dwight Ball said that dispute has been resolved, and the two executives were examined last week.

But Ball asked why the vice-president in charge of Muskrat Falls was one of the two executives questioned by Hydro-Québec lawyers.

"So I ask the premier: if this challenge is not about water management and the Lower Churchill, why is the VP of the Lower Churchill project being examined under oath?" Ball asked.

Natural Resources Minister Derrick Dalley replied that there is no relationship between the ongoing Hydro-Québec lawsuit and Muskrat Falls.

"Obviously, there is a court case going on, but the court case itself is, with respect to the interpretation contract, the 1969 power contract," Dalley said.

"The renewal of that contract and the agreement with Hydro-Québec as to how the water will flow, how the power will flow, whether it will be continuous or interrupted — that is exactly what the court case is all about. It is not about water rights. We maintain water rights, that has been determined."