Thanks for the idea. I've tried a similar approach, but still had water rise so fast it went over the top of the outer pipe. I only had about 6 inches of elevation on it though, so maybe I need to make it more. The problem came when a 4 foot log worked its way into the pipe (how I'll never know). It took me an hour to fish it out with a 15 foot long pole and a rope noose.
With regard to the cost, my lake was built in a wooded hollow with a sand/clay base. I've got seepage around the base of the levee, but am told that is expected for the first year or so (until the dam gets fully saturated and settles in.) Lake is 3.5 - 4 acres. Levee was 300 feet long, and 11-12 feet high. I had 3/4 of the lake bottom cleared of trees, leaving the remaining 1/4 acre standing. He also built a small island. Cost was 11,500, to include a 100 yard drainage ditch from the back of the levee, across a field, into a creek. I was told by the contractor the job was actually a 12,500 job, but since he had given me an estimate for 11,000 (and was a very close friend)he let me have it for 11,500. He still plans on putting in a culvert in the drainage ditch, so I can get to the other side. I'm satisfied with the results, and feel I probably got the better end of the deal. When I figure out how to do it, I'll put a photo or two on the site here.