Rules debate

This is for you Eric, i think we discussed this at one point.
from the MD-DiscGolf.com forum.

here's an often overlooked/misunderstood rule that may save you strokes sometime. it sure did for dr. evil and i (if you can believe it shaved strokes on a circle nineteen).

druid hole twelve's long pin, short tee (the one on the other side of the road with the fast green). the green was a solid sheet of ice, nearly impenetrable with stomping. we slid down it on the second shot and kept sliding to the bottom of the hill after all subsequent shots. hawk and TE finally made there shot and TE had to slide on his ass to get it out and catch himself on the pin. we finally got the disc to stick pin high about 12' to the right. i hit the chains, but wouldn't you guess, it kicked out and went back to the bottom of the hill.

here's the rule-- i said we could take the shot over with a stroke penalty. hawk and dr. evil (both certified officials ) said that only applied if the disc was lost or OB. that's not the case. you can take a stroke penalty and play from the previous lie in ANY situation...

803.06 Unplayable Lie
A. A player may declare his or her lie to be an unplayable lie. The player is the sole judge as to whether the lie is unplayable. The unplayable lie may be relocated to a new lie that is: (1) No closer to the hole, on the line of play and within five meters of the unplayable lie; or (2) The previous lie as evidenced by the marker disc or, if the marker disc has been moved, from an approximate lie as agreed to by the majority of the group or an official. The original throw plus one penalty throw are counted in the player’s score.