Sorry, I've been working on getting some estimates for the toe drain. For me, the most logical solution is the toe drain which should resolve my problem. I know it doesn't stop the seepage but atleast I will be able to divert the water where I want it and prevent the toe of the dam from eroding.

Now for the hydrated lime, I do plan on trying it but not until it gets warmer. I would guess around late March depending on the weather. I'm going to start off with a low amount to see how much impact it has on the PH. I don't intend on killing any fish : )