Celotex as underground water line insulation?

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RAM1961

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I've been fighting for two weeks to find a frozen water line. Previous (original) owner and builder doesn't remember how they came out of the shop with the water line to the well. Nor does he remember how deep the line is although he thought no more than three feet. Anyway, yesterday, I was digging next to electrical conduit which does run to the well, with the idea of one trench for water line and electrical between pressure tank and well. A foot down, I hit 2" celotex. It appears to be at least a half sheet, and it was frozen as was the ground underneath it down to the landscape fabric at roughly 18". I'm not sure why that's there either. Is it common to use celotex as an insulator for an underground water line? I've helped out on a few water lines over the years and had never seen it. I'm hoping that me seeing it here means the water line must be under it.
 
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