qquote;So my question is how many of you have find this before?
Too many times. that material, even though it is code approved it is the poorest possible material for a buried gas line. The coating is not much more than a coat of paint, and the base pipe is black steel which should NEVER be buried undelground. ANY damage to the coating, such as wrench marks, or exposed pipe MUST be tightly covered with pipe wrap tape. IF moisture can contact the base pipe, it WILL corrode quickly. I have seen pipes, like yours, which looked like Swiss Cheese in a matter of a few years.