This is very close to the crux of the matter. But let's be clear, the "dams" didn't break any contract. They are just concrete and steel that blocked the river. The original owners of the dams broke a very clear law of the day that required any dam on a salmon bearing stream to provide fish passage. They didn't and got away with it. That could only happen if it is true that politicians can be bought, not that this surprises many of us. The dams, as large as they were, only had 25 MW of installed capacity and ran an average of 12 MW generation. This is crazy. Dams that big on a river that big would typically have over 100 MW of installed capacity, but these dams were built to generate energy for mills in Port Angeles. I guess 12 average MW was enough for the mills. Crown-Zellerbach owned and operated the mills for decades, but when "Free the Elwha" became a local, then regional, rallying cry, Crown-Z sold the dams to a shell company, James River, based in Nevada because of its favorable bankruptcy laws.
The Elwha dams date to prior to the Federal Power Act, so they were never federally licensed. They also pre-date the designation of Olympic National Park. A number of parties sued to require that the dams be federally licensed. With federal licensing comes things like requiring environmental mitigation, including fish passage. Not to mention that national parks are "federal reservations" that normally prohibit privately owned hydroelectric dams. Hence the strategic move to sell the dams to "James River" so that a company with actual assets didn't get stuck with dam removal costs, which FERC (Federal Energy Regulatory Commission) could have forced. Twelve average MW can't pay for the kind of mitigation measures a project like the Elwha dams would necessitate; it really would require something on the order of 100 or more MW to generate enough energy to afford the many and expensive mitigation measures. So Crown-Z needed to make a plan to cut and run, and they did. So the federal government (we taxpayers) got to pay over $200 million for dam removal, although the feds operated the dams an additional 8 years or so to build up some partial funding to help bankroll the removal. The upshot being that it has been a complex process, but the bottom line is the dams are finally gone and wild fish do appear to be benefiting from the removal.