Extracting utilities from 2D files

I am trying to get the hang of subsurface utility modeling in ORD. I have an existing utility 2d file and I have brought some underground storm lines into the 3d space using extract from graphic and filter.

How is the elevation data computed?

I assign the surface but the vertical offset is still below the terrain model. Drainage structure nodes automatically show up when a bend occurs but sometimes they are at elevation 0 and some pipes don't hit them.

Any advice or resources? Thanks

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