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You can and should vent the gas from your hot water heater to the outside of your home. Traditionally, these gases were vented back to other gas appliances, like stoves or furnaces, but many jurisdictions have outlawed this practice due to the risks it provides. 

Most water heaters today use atmospheric venting that exhausts the gas out of the home through a pipe.

No, you shouldn’t leave a gas line uncapped because it can allow gas to escape into your environment, which can lead to fires, explosions, and health hazards. That’s why it’s critical to properly cap and seal any unused gas lines as soon as you can. If you’re not comfortable with that, you can always call a licensed plumber to safely handle it for you. 

While some building codes allow galvanized pipe for natural gas, it shouldn’t be used for propane. Propane can cause the pipe to wear down, leading to dangerous leaks. Instead of galvanized piping for propane, you should consider coated copper, black iron, or corrugated stainless steel tubing (CSST). For underground propane line installation, you can use polyethylene (PE).

If your existing gas line requires a simple fix or a small replacement and it's easy to access, you can expect it to take one or two hours. A more complex project like fixing an underground gas line can take several days to complete. Consult a gas plumber near you with the specifics of your project to receive an accurate estimate of the price and time commitment.