This has been a good discussion. In my book, a good discussion is one in which most or all sides of a question are explored and the pros and cons of each option are understood and presented for the parties to decide on a preferred course of action. Options are good.
Here�s an attempt to summarize/rank the options presented in order of ascending cost and overall desirability. I invite all to critique this summary.
1) First, cheapest, most desirable fix is to get the original contractor to fix the problem at no cost, or at least only cost of fuel.
2) Second, purchase a couple of bags of ag lime, bentonite, clay, or whatever you can find and dump that as close to the area in question as you can. Before doing, please make sure that by doing so you have not violated your warranty, implied or otherwise, which lets you do #1 above for no cost�estimated cost as low as $20
3) Third, hire a contractor to attempt to repair the leak by working on the external surfaces of the dam. This approach worked for me at virtually no cost, because I have a small dozer. For others, probably would cost no more than $500 and require less than 5 hours of dozer work. Involves no draining of existing pond water levels.
4) Fourth, follow the full up bentonite recommended program. If you have a tractor and spreader, then you are money ahead. If not, plan on hiring this done and also include the cost of transporting material to the site. Talk to the bentonite folks in Texas and they will tell you how to calculate the amount of material needed�it isn�t a couple of sacks, by the way. The research I have done shows this works in less than 50% of the cases�cost at a minimum will be $1000 and probably higher. No pond draining required.
5) Drain the pond; bring in equipment to fix the leak. Cost�you take a guess�probably $5000 minimum.
These are the options that have been discussed and I have attempted to summarize in order of preference. I welcome comments/critiques and thank all for the great discussion.