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I'm guessing this is a similar concept as a fuel rail on a fuel injection system where the the rail holds a supply of gas available when the injectors need it and combined with the damper, prevents surges.
Although this is totally different, I'm guessing the larger line holds enough fuel so that when the tankless fires, it's not relying on a more limited supply that a smaller line would hold. Regardless, I will make sure we size the lines correctly based on the mathematical calculations on output of the meter and requirements of the appliances.
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