It is the sediment in the bottom of the tank. When water heats it causes it to bubble and the sediment is causing it to be larger than normal bubble hence the thumping sound. On electric heater you can take out the bottom element and clean it our using a shop vac. Commercial gas heaters have an access panel that is for cleaning them out. Might look but I doubt your 40 gallon household heater has an access panel.
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Today's Featured Article - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
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