What is going on with this plumbing?

[Rodshouse]

I have 2 water heaters in my house. This one is leaking at the base and is going to get replaced, but I'm trying to figure out what is going on here with the plumbing. There are 2 pipes feeding the inlet. I assume the insulated pipe is coming from the other water heater. Why is there a pipe where the TP relief valve should be?

 

[Reach4]

On the two pipes, one could be a recirculation line feeding water in, or that pipe could be supplying water elsewhere.

Looks to me as if you have a T&P valve. So I think you are saying that you think the T&P hole has been swapped with the hot hole.

 

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[Rodshouse]

Does this flow make sense?