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 - Show Coverage: Journey to Ankeny - by Cindy Ladage. We left Illinois on the first day of July and headed north and west for Ankeny, Iowa. Minus two kids, we traveled light with only the youngest in tow. As long as a pool was at the end of our destination she was easy to please unlike the other two who have a multitude of requirements to travel with mom and dad. Amana Colonies served as a respite where we ate a family style lunch that sustained us with more food than could reasonably fit into our ample physiques. The show at Ankeny
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