willshak wrote:

-snip-

If it's any comfort to you, I have a 5 year old GE propane water heater,
and the red and blue plastic surrounds of the hot and cold pipes are
warped from heat. I also have black foam pipe insulation around the hot
pipe to reduce heat loss until it leaves the basement. It too, is
slightly melted at the bottom.
Maybe it's due to blow-by during windy conditions when the heater is
heating the water.
I'm not going to worry about it unless water starts squirting from the
heater around the pipes. My office and shop are here in the basement, so
I'll know when that happens.
Maybe some metal sheeting on the sides of the flue next to the pipes
will prevent further melting.

Do you have a CO detector that remembers its highest reading? I
wouldn't worry about fire or explosion so much-- but the poisoning
from CO is accumulative, so a little bit over a long time will just
knock you out at your desk [or over the table saw] some evening.

I'd be real curious if the CO is spiking when the heater isn't
drafting right.

Jim