Thanks for the input.
Even though no water was on top, when I ran over the topsoil in the area with the tractor and dirt scoop, they tried to take the short cut to China. That is why I started with the trackhoe.
I will dig out a bunch more of the topsoil and either take my chances with it holding water or try to pack it with clay.
I have lots of clay in the general area so it would be easy to pack if it won't fill up over the spring level. Therefore, that isn't really a concern. My main concern is that it would become a relatively slow & constant leak when the lake gets near full.
I'm somewhat inclined to dig out the topsoil and take my chances. What are the upsides and downsides to springs?
Thanks!