This is from a 2009 Standata from Alberta. I'm guessing it's their interpretation of reasonable:
Rule 6-206 Consumer's Service Equipment Location: Length of Service Conductors in Buildings Rule 6-206(1)(e) requires that service equipment be located as close as practicable to the point where the service conductors enter the building. Rule 6-208 outlines where the conductors must be located. Both rules recognize that service conductors must enter the building to make connection to the service equipment. While it is generally agreed that in the interest of safety the unfused conductors within the building should be as short as possible, this distance is not clear. A recommended practice in Alberta is to limit the length of service conductor in the building to 3m. Where this is not practicable, service conductors may extend further inside the building provided they are mechanically protected in rigid metal conduit. The maximum distance for service conductors inside a building should not exceed 7.5 m.
I thought the rule about rigid conduit was an odd interpretation, but 2 inches of conduit is an even stranger interpretation of "as close as practicable".
