That sounds wrong and could give you CO poisoning as there is not enough heat to melt the snow.
You need a licensed gas fitter or chimney Pro to look up the rules in the gas code book. Here is a link with some basic rules but it does depend on the slope of the roof and your climate and type of chimney. Generally in my area it needs to be 3 feet above the top of the peaked roof unless the nearest part of the sloped roof is 6 feet away. It still needs to be at least 3 feet above the roof where it leaves. It is never good to be below a sloped roof as you can get swirling winds and downdrafts in the chimney and CO poisoning. Get a Pro to do it properly.
http://www.checkthishouse.com/72/chimney-flue-furnace-water-heater-venting.html
http://www.checkthishouse.com/2418/gas-appliance-chimney-placement-and-termination.html
You need a licensed gas fitter or chimney Pro to look up the rules in the gas code book. Here is a link with some basic rules but it does depend on the slope of the roof and your climate and type of chimney. Generally in my area it needs to be 3 feet above the top of the peaked roof unless the nearest part of the sloped roof is 6 feet away. It still needs to be at least 3 feet above the roof where it leaves. It is never good to be below a sloped roof as you can get swirling winds and downdrafts in the chimney and CO poisoning. Get a Pro to do it properly.
http://www.checkthishouse.com/72/chimney-flue-furnace-water-heater-venting.html
http://www.checkthishouse.com/2418/gas-appliance-chimney-placement-and-termination.html