Hi. I'm Smitty. I am a professional appliance repair consultant here to help you diagnose, and repair, your appliance.
Is this the valve that is leaking?
I thought it was but looking further, there is a fine spray coming through the grate at the bottom of the h/w heater. I'm thinking I will probably have to replace the tank.
Mike, I hate to say it but that is a major failure of the tank itself. Replacement will be needed.
Sorry about the bad news. I wish it could be better.
Please let me know if you have any other immediate concerns.If not please select a positive rating at this time. Doing so will not close your question, and after you rate my service you may ask any followup questions you like. All at no additional charge.Thank you for the opportunity to serve you. Best, Smitty**How to rate your expert**