russ, steve...enjoyed this post. the rust colored water/slime caught my attention. here's what i got: my pond is 2 years old, 25 feet deep. i have many little springs on the hill side around the dam and past the dam. no significant water loss, so i really don't think it is leaking from the pond, plus these little springs were present even before we started digging. but, the water and soil around that site behind the dam where the springs runoff to is rust, orange colored, and occasionally looks like an oily film on it. one other thing.... the grass (that tall type that looks great for fish lining the edges of ponds) ...the grass grows great in it! any comments...? mark