Small drip bottom tank

If the pipe itself is protruding more than usual, it sounds as if the tank has corroded around the outlet pipe. If you just mean the pipe coming out of the bottom, you must find the source of the moisture.
It could be a leak on the top or above the tank, or it could be condensation. If it is a leak, it will get worse, and you will know for sure shortly.

Tank has rusted out.
http://waterheatertimer.org/Leaking-water-heater.html
Replace with new tank:
http://waterheatertimer.org/How-to-install-gas-water-heater.html

If you need further help, I’m available over the phone at https://www.6ya.com/expert/gene_9f0ef4df2f9897e7

I recommend safety changes to prevent ruptured water heater and assorted leaks.
135 degree hot water.
Maybe replace TP valve if it is dripping.
Drip pan under water heater with 3/4" drain line to outside.
Expansion tank on incoming cold water line to absorb pressure build-up, and prolong life of tank and plumbing.

Here's why:

1) Yes you can have scalding hot water.

2) I recommend 135 degrees since that will burn the evil right out of ya. And generally kill clothes washing bacteria.
http://waterheatertimer.org/How-to-adjust-water-heater-temperature.html

3) 150 is dangerous and can seriously burn skin in 1.5 seconds. Not safe around children and elderly.

4) Temperature settings on electric water heater are approximate, since thermostats are calibrated approximately, and read temperature through tank wall.

5) Also if you want to increase amount of hot water for high-consumption household, then setting tank temperature upward is one solution since more cold water is mixed with hot, so amount of hot inside tank goes further.

6) High temperature can cause TP valve to release water.
TP valve is pressure-temperature safety valve. Do NOT cap off.
Rating should be 125 psi and 180 degrees ... but all things water heater are approximate, and TP valves need replacement now and then.
It is not recommended by water heater manufactures to use 150 psi TP valve when water heater came with 125 psi. Rating shows in small print on end of TP. New TP valves sold at local hardware. Let tank cool before installing new one.

7) Higher temperature and high pressure can rupture tank.
Pressure over 80 psi shortens life of water heaters and plumbing fixtures. Put BTG100 pressure gauge on water heater drain valve to check pressure.

8) You need a drip pan with 3/4" drain line to outdoors, or to drain vent line, to prevent flood caused by ruptured water heater.
Turn water heater off when going on vacation.
Inspect water heater each 6 months.
Drip pan available at local home center or hardware:
http://waterheatertimer.org/9-ways-to-save-with-water-heater.html#drip

9) Heated water expands and puts pressure on tank and pipes.
Water does not compress... so when water gets hotter it expands against tank wall and against pipes.
Especially in closed system (check valve present) when system is without expansion tank.
Expansion tank is installed on incoming cold water line.
http://waterheatertimer.org/9-ways-to-save-with-water-heater.html#expansion

If you need further help, I’m available over the phone at https://www.6ya.com/expert/gene_9f0ef4df2f9897e7

When you say drain valve, do you mean TP valve?
Two different things: -drain valve and -TP valve

-Drain valve is located near bottom of tank and has hose thread on end.
-TP valve is brass and is located on side of tank tank near top on , and has a pipe that runs down within 6" of floor, or pipe goes into a drain pipe. DO NOT CAP OFF TP VALVE because this is safety outlet that prevents extremely hot water from rupturing tank.
http://waterheatertimer.org/Leaking-water-heater.html

1) If drain valve located near bottom of tank is leaking, it can be capped with a garden hose cap from hardware store-home center. Thread cap on end of drain valve.

2) If TP valve is leaking.
a)Turn down thermostats on water heater
http://waterheatertimer.org/How-to-adjust-water-heater-temperature.html
b)Replace TP valve
http://waterheatertimer.org/How-to-replace-TP-valve.html
c) Install expansion tank on incoming cold water line
Buy expansion tank at hardware-home center-plumbing supply and tee straight out from cold water line and attach expansion tank. About the size of small football.
http://waterheatertimer.org/images/Expansion-Tank-1-82.jpg


4) Mythbusters blows up a water heater for your enjoyment U-tube
Video shows that extraordinary pressure is needed to blow up heater.
This event has only been reported once in past 10 years that I have read, and it blew out side of home. Stats for this type event don't exist in insurance company records, so you are safe - just don't cap off TP valve.

5) Add a comment for more free help.
Also take advantage of fixya phone service.
For a price, expert speaks with you over phone while you work on heater or any do-it-yourself project.
Fixya is always less expensive than a service call.

Water heater should be set in a drip pan.
Otherwise, put 1 gallon bucket under TP release pipe to catch water.
http://waterheatertimer.org/Water-at-bottom-of-water-heater.html#drip-pan

When you say relief valve, I assum you are talking about brass valve located on top of tank or near top of tank. This is TP valve and a pipe connects to this valve and runs down to within 6" of bottom of tank. TP valve has a small lever on it.
If you are talking about tank drain valve located at bottom of tank, then add a comment.
Following information is for TP valve.

Dripping TP valve can be caused by 3 different thing:

1) Obstruction inside TP valve. Open TP valve for a moment to flush away particles and slowly lower lever back down. See if water stops dripping, if not, then replace TP valve

2) Defective TP valve: replace TP valve. Turn off electricity to water heater. Let heater cool for several hours so you do not get scalded. Close shut off valve located above tank on cold side. Open tub spout to relieve pressure, open tank drain or open TP valve and empty water below TP valve level. If TP is located on top of tank, not much water has to be drained. Tank is under press when hot, so be careful. Put teflon tape on new valve and install with big pipe wrench by turning clockwise until TP valve is very tight.

3) Overheating tank. TP valve is temperature-pressure valve. If tank water is over 150 degrees, the TP valve starts drizzling hot water to relieve tank pressure.
Lower tank pressure two different ways:
a) turn down thermostat
http://waterheatertimer.org/How-to-adjust-water-heater-temperature.html
b) install expansion tank on incoming cold water line
http://waterheatertimer.org/Water-at-bottom-of-water-heater.html#expansion-tank

If you have a leaking water heater there is a serious problem.
http://waterheatertimer.org/Water-heater-leaking.html
Page shows how to limp along on a leaking water heater if your water heater needs replacement.

One of three things is causing the water:
1) Loose water connection on top of tank that is dripping down inside tank >> check pipes on top of tank.

2) The vent is clogged or not working correctly causing condensation inside flue pipe.
Condensation water is dripping back down inside tank.
Problem means possible CO poisoning if gas is not venting.
Look at vent pipe to see if joints are corroded.
Use long fireplace match > light match and put into draft hood at top of tank and see if smoke goes up.
Put hand at draft hood opening when water heater turns on to see if vent gas enters home.
Do same test when furnace turns on to see if furnace vent is pushing back into water heater.
Does water heater vent inside same pipe as furnace? You may need to set up separate vent for water heater if furnace gasses are pushing back into home.
Check furnace vent for obstructions.
Look at vent stack top of home to see if hood is in place.
Check if bird nest is built inside warm vent pipe.
Improper flue is top priority for getting fixed so vent gasses properly escape home.
You may have to call a plumber.
Professional plumbing forum:
http://www.thetankatwaterheaterrescue.com/forums/forum3/

3) Your water heater is rusted out.
A rusted tank has to be replaced.
It cannot be repaired.
However, before replacing tank, you do not want a tank failure where tank ruptures and water runs inside home until water is shut off.
This will cause major damage.
Protect yourself first.
Turn off water valve above tank.
Move gas knob to 'pilot' so burner is not heating water.
Open tub spout on hot side to relieve pressure on tank so it will not rupture.

Now you're protected.
Link above shows how to limp along on failed tank until you can replace heater.

You need a new gas water heater from Lowes or Home Depot
Look at label on side of you tank for gallons and btu's of your water heater.
Measure height to flue pipe so you get same height water heater, so pipes don't have to be changed.
You need a pipe wrench and teflon tape which will be wrapped on each pipe thread when pipes are reassembled.

Step1) Drain water heater using valve at bottom of tank.
http://waterheatertimer.org/Water-heater-will-not-drain.html

2) Turn off gas valve going into heater.
When gas valve is perpendicular to gas line, then gas is off.
Dissemble gas line to water heater.

3) Disconnect flue pipe and support flue pipe with wire so it doesn't not fall down. Flue pipe joints should be held together at each joint with 3 screws.

4) Turn off water. Shut off valve is on COLD side.
Disconnect water pipes.

5) Move old water heater out of way.

6) Set new water heater in place. Put water heater in drip pan.

7) Connect water pipes >> cold goes to side marked cold.
Hot to hot.
Buy new flexible water connector pipes at home center for easy installation of water pipes.

8) Connect gas line exactly as it was connected before.
Home center sells flexible gas line connector for easy installation of gas line.
To test for gas leak after installation, mix liquid soap with water and put around gas line joints to see if there are bubbles.
Natural gas has less pressure than water lines, so gas pipes are easy to seal with ordinary wrench.

9) install TP pipe that runs to floor. Use old one off old heater.

10) Fill tank completely with water until water is coming out of tub spout.

11) Turn on gas, and light pilot as shown in manual.
New gas heater sometimes have small water leak when first fired up, so ignore a bit of water.

12) Save water heater manual like it is gold, and read everything in manual.

unfortunately not, if the tank is leaking from the casing, it needs to be replaced. i would suggest, if your not paying water tax, you can run the tank for as long as you like, just divert the leaking water into a floor drain. but i do highly recommend getting a new tank. that drip can turn into a flood in a matter of days, all depending how bad the inner wall has corroded.

If you are reffering to the drain valve at the bottom of the hot water tank. It may be leaking due to the O ring being cracked or worn out. You can either drain the tank and replace the valve or you can buy a hosebib brass cap and thread it on the existing valve. There is no cause for alarm when doing this as this valve is just to drain the tank when replacing your hot water heater

Hi

Please try and remove the cap by turning it clockwise and counter clock wise to remove it. If it doesn't come off then empty the water dispenser and use glue to fix the leak. See this link to see which type of glue should be used--- Glue Usage


Please do accept this solution and revert for further assistance.

Thanks
Rylee