Marktk, do yourself a favor, DO NOT entertain any more phone conversations, use E Mail or letters with copies for your records, paper trails for disputes will hold up in a court if it goes that far and at the least it shows a bit of professionalism and seriousness, these conversations should be date and time stamped, any phone conversations to this point should be logged with the names of the person you spoke with as well as what the conversation content was. I would agree that they blew it by digging on your property and destroying your pipe, it should absolutely be replaced in one piece and with good pipe. You do not have lots of time before freeze up so they should be made aware how important the timing is and it should be in writing, perhaps in a letterhead from a local lawyer.
Let me tell you a true story, in my last marriage my stepdaughter broke an arm while playing outside, we took her to the emergency room, while waiting to be seen, an older gentleman came in with a bleeding head wound, he waited for about 30 minutes without being seen, my stepdaughters dad who looks a lot like me ( a bit eccentric, long hair and full beard ) stood up, walked over to the elderly gentleman and handed him his business card ( he is a logger) and loudly enough that everyone could hear including the receptionist he said Sir, if you live through this waiting for service, Please give me a call, I'm a lawyer and we will own this hospital, it took about 10 seconds for the old man to be whisked away and the professionals to start doing their job.