Lake Monroe is sitting at more than 10 feet above its normal pool level.
State biologists say the find is promising evidence that a bald eagle restoration effort decades ago has proven to be a success.
State officials regularly monitor Indiana's recreational areas for high concentrations of blue-green algae.
Indiana Department of Natural Resources officials announced this week that Monroe Lake beaches will not be open in time for Memorial Day Weekend.
Winston Wood was convicted last year of fleeing the scene of a boating accident that resulted in the death of two people and the injury of another.
A kayaker notified local authorities in Bloomington last month that a piece of property on Lake Monroe was clear-cut to the shoreline.
The property owners are under investigation for clearing the area of all vegetation. They could face thousands of dollars in fines.
Mellencamp says Ghost Brothers is about an actual incident that happened at a cabin he owned in Indiana and that he has documents supporting his story.
State environmental officials began testing water in state parks and recreation areas Monday for high algae levels.
Winston Wood to be sentenced on Friday in Monroe County.