Lorie,
This question was on the front page of the newspapers in Hoosierland not long ago. Recall the failed dam in the Lakeside community during the floods earlier this year. The homeowners around the lake built the dam, but apparently did not adequately maintain it over time.
Apparently, there are many such private dams in Hoosierland that might cause serious damage should they fail.
You might want to check out
Indiana Department of Natural Resources v. Lake George Cottagers Association which was argued before the Court of Appeals in April 2008.
Also read the attached DNR press release. An excerpt:
Who is responsible for keeping a dam safe?
The Indiana General Assembly has established dam safety laws to protect the citizens of the state. Generally, the laws are intended to ensure the dam owner maintains his/her dam in a safe manner that minimizes potential safety risks downstream to lives and property. Since dam owners can be held accountable for any damage that results from the failure of their dams, they should do whatever is necessary to avoid injuring persons or property.
Who makes sure dam owners are doing what's required?
The Department of Natural Resources has the statutory authority to regulate dams in Indiana. The DNR oversees the inspections of about 1,100 dams statewide.