Photos are always a good thing! We tend to be very visual here. The chimneys in older homes tended to be plastered directly onto the brick, so exposing the brick and removing all the plaster detritus will be either a labor of love (and a ton of sweat equity) or expensive. Getting rid of the water heater is maybe easier, depending on the possibility of a different location for an on-demand unit. Many of the high efficiency appliances have PVC flues and can be vented out the sidewall...or even mounted on the exterior wall. I would consider hiring a local kitchen designer or other design professional to assist you in space planning and finishing your kitchen. You can find local help here on Houzz by hitting the "find local pros" tab on the header and following the prompts. Best of luck!

marble counter tops, designer backsplash, cermanic tile flloor

What were these chimneys used for? If I did put in the effort to expose fully, what might i find underneath the plaster? Is/was there an opening, like a fireplace? Because there is a fireplace in the living already only 12 feet away. Might there be dual side opening? Everything around it IS COMING OUT. And i can either cover it and do some kind of faux finish, or restore it. Either way, it's a 400 sq inch THING that I will need to do SOMETHING with. My sister is a designer. Hubby is I & E certified. So, hot water heater is not the dilemma. I'm curious if We would lose some home value by enlarging kitchen to what would be necessary if I put the island flush BEYOND the southern edge of chimney, as i really dont want the isle in kitchen to BE that wide. Other option is to place island so that the cabinet door side facing North is flush with the Northern side of chimney. Now, if I could restore it and there be a potential for function, I would have other things to consider entirely. Im all about utility, so if it wont serve a function, I will just cover it and put up floating shelves or something. The dining is only 9 ft deep so coming out beyond this structure would cut this space by half rendering it no longer a dining room. I don't care. We use it now as a catch all. But future owners??? Going with other less expanded option will still necessitate that base cabinets/countertops will jut out awkwardly on the dining side as the chimney is only 20". BTW, thanks so much for taking time out of your day to answer my questions. I am looking for the creative ideas u might have, or something you have seen done before. The structural and floor plan pieces of this equation will ultimately be addressed.

photos helped, but need a floor plan and keep the post to 5 sentences or less.

The second chimney was used to vent the kitchen stove. There will be a "thimble" in the chimney, probably where the water heater flue is now. If the water heater is going to move you could consider taking down the chimney and gaining that space. That will free up design options as well. I am unfamiliar with the term "I & E certified" What does it mean?

Awesome! Thx Ironwood! Super helpful. I thought it might b structural. Have structural person coming tomorrow. International certification instrumentation and electrician. Works in advanced manufacturing. Pipes, pressures, fittings. Etc. over my head! Thx again. You were helpful.