(2) To protect life and property, the state engineer may make rules controlling the construction and operation of dams, including rules controlling:

1. (a) design;
2. (b) maintenance;
3. (c) repair;
4. (d) removal; and
5. (e) abandonment.

(3) The state engineer may by rule exempt from this chapter any dam that:

1. (a) impounds less than 20 acre-feet of water and does not constitute a threat to human life if it fails; or
2. (b) does not constitute a threat to human life and would result in only minor damage to property of the owner if it fails.