Gas line at water heater

Came across this hook up at an inspection. I have never seen anything like it before. Just to clarify the pictures. The gas line tees into the water line on top of the water heater. Looks like its been there forever. According to the homeowner the water heater was still working until the gas got shut off. Apparently the gas co. was going to replace the meter and found a broken knob on the water heater and would not turn the gas back on till fixed. The water heater is the oldest water heater I have ever seen. I would love to know what it is supposed to do.

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