Thanks for the replies and yes a leak must be fixed!
Now while looking at the sears diagram parts (sears.com) it does not match ours exactly so I first have a question does the dip tube fit in where your cold water pipe runs to or is it the primary anode? And are these parts threaded and stick out of heater or do they just fit inside the tank?
Our model is 153.318130 it shows 3 holes side by side (that is what ours looks like) and a 4th hole behind a hole on the right side which we do not have.
It is very easy now to see the leak now that the leak is getting stronger flow to see it is between the water heater metal threads coming out of the water heater for the pipe to go on and the pipe. It looks as though it has lost its seal or bond between the two. Actually it looks like old yellow/brown glue flakes are chipping out.
So once we take the pipe off if it is the metal piece (coming out of the heater) and not just the bond between them can that metal piece be replaced?
Thanks again in advance.