David wrote:
Hopefully someone can offer some guidance on a problem I have with my
water heater.

It would seem that the boneheads that built my house 7 years ago
failed to put the hot water heater in a location where the T&P relief
valve can safely dump water to a drain. The water heater is installed
in a small closet, below grade, and was placed on top of carpeting,


Any advice?

Replace the water heater. Seven years for a three-year device is pretty
good.

Around here, water under the water heater indicates a leaking tank.

The T&P valve is to prevent an EXPLODING water heater, not for piddly excess
drainage.