I'm struggling to understand what you're doing. You analyse a piece of pipe by fea, presumably because it has moved down due to some sort of ground movement and you've calculated less than 1% strain. This is less than you get for a 40D cold bend and no one cares about that. I've never seen a normal pipe be stress relieved by heating and then cooling slowly unless you have quite thick pipe. You need to make sure the weld was properly ndt tested and if so I would just make sure the pipe can't move again and leave it be. 10% strain maybe, but doing this for 1% seems completely unnecessary and welding a sleeve just creates a stress Change at the sleeve weld and could lead to a different failure if ground movement occurred again.
In short I think you're solving a problem which doesn't exist and in the process creating some real problems.
Just my view, but from the low amount of info offered so far that would be my input.
My motto: Learn something new every day
Also: There's usually a good reason why everyone does it that way