The hydraulic structures of the proposed site C hydroelectric project in northeastern British Columbia would require deep excavations in Lower Cretaceous Shaftesbury shales. A significant stress relief would occur over most of the area to be occupied by the structures. Concerns about the magnitude and rate of time-dependent rebound and their impacts on project design, construction, and operation have been addressed. A review was made of several important case histories of other major projects constructed on Prairie shales. The properties of those shales were compared with the Shaftesbury shales. Long-term testing to establish the shale swelling characteristics was performed. Analyses were then made to evaluate potential elastic and time-dependent rebounds of the project area. A procedure for computing stress changes and time-dependent deformations due to the unloading effect of excavation followed by structural loading was developed. The procedure is useful in determining differential rebound that would occur in areas of steep topography or significant variations in the distribution of structural loads. Key words : rebound, shales, dam, swelling properties, swelling pressure, stress relief, deep excavations.