Sec. 2. This chapter does not apply to any of the following:
(1) An artificial lake that is created or used in or in connection with the following:
(A) Supplying a city or town with water.
(B) The generation of electric energy.
(C) The storage of water for a use described in clause (A) or (B).
(2) The waters of Lake Michigan.
(3) A lake owned or controlled by the department.
(4) The waters of an artificial lake in a town located in a county having a population of more than forty-seven thousand (47,000) and less than forty-eight thousand (48,000).