bob, 1 inch per day doesnt sound that bad. Does it lose 1 inch in winter as well as summer. If you have a fountain type aerator, that will cause much evaporation. I'm fighting something similar in S. Miss. with heat and raining all around but not in my watershed. Clearing trees first, then may go with draining or bentonite. I was told that 'plug' type bentonite is much better than ground up in existing water, as it will not disperse as much, and will find the point of the leaks better. This by people who deal in wells and such.

Robinson's newspaper idea is a new and interesting approach. My gosh, the Chronicle has enough wasted timber in it that it is worth a shot. Maybe you have a starting point and several good options to try. Keep us informed of the results.