(1) Dams and reservoirs licensed and subject to inspection by the federal energy regulatory commission that are exempt as provided in 85-15-107, MCA, include dams and reservoirs for which a license application is pending before the commission.

(2) Naturally occurring reservoirs only are exempt from these rules. Naturally occurring reservoirs that are developed by excavation in the reservoir area or excavation and/or backfill of an outlet system are not exempt.

(3) A high-hazard dam or reservoir does not include:

(a) an obstruction in a canal used to raise or lower water therein or divert water therefrom;

(b) a flood levee on the bank of a natural lake or stream, the primary purpose of which is to control floodwaters;

(c) railroad fill structure and road or highway fill not intended to store or accumulate water for future use; and

(d) an obstruction in the channel of a stream, watercourse, or floodplain, which has the single purpose of spreading water within the bed of the stream or watercourse or floodplain upstream from the obstruction for irrigation of only that land containing the spread water.