Verify that the water heater vent pipe is up to code - 3†exhaust may carry up to 38,000 btus into the chimney Water heater has an input btu of 36,000 then forth is up to New Jersey’s code Since the removal of the furnace exhaust into the chimney the chimney will not ever get hot enough to properly expel the flue gases from the water heater Either a liner is to be installed into the chimney and have township come out to perform an inspection Or Repace water heater with a direct vent exhaust and run out of the house If work is to be competed then 50%/of service call will be credited towards the job to be competed