Beach - you are in Calif. - the NEC 1996 is the state adopted code (not '99 or 2002) -...so
250-50(b)Excetion - says "shall be permitted to be grounded to any accessible point on the GES as described in 250-81, or to any accessible point on the GEC."...going to 250-81....
250-81(a) - Metal underground water pipe - there is no requirement for attaching within 5' of entry into the bldg....(unless I missed somthing but I don't think I did) ....so - your elect. contractor wired this correctly....until Calif. finally gets around to adopting the 1999.
