Hot Water Heater - Faulty Valve

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While checking on the water pressure for the heating system, Dan the plumber (photo 2) noticed the hot water heater's outtake valve leaking (photo 1).
He said that when the heater was installed (there is a sticker with a date of 2006), a longer valve (almost down to the floor) should have been used (photo 3) .
Also, the wrong material was used (steel) was used resulting in corrosion (see photo 4) and possible water pollution.
Estimated removal and replacement cost: $200.00