Let me open this post with the statement of;
I am only trying to ensure a full understanding of what is required when dealing with metal water pipes.
Having been called to check the grounding of metal water pipes I have seen many different scenarios which were code compliant but hard to find.
250.52(A)(1) requires that any metal water pipe in contact with earth for 10 feet or more to be used as the grounding electrode and the point of connection must be made within the first five feet from the point of entry.
240.104(A)(1) requires that any complete metal water piping system installed on or in a building be bonded to the service. This bond in not part of the grounding electrode system and shall be bonded to the service equipment, the grounded (neutral) conductor, the grounding electrode conductor where of sufficient size, or to the grounding electrode.
The bonding jumper mentioned in 250.53(D) (around the meter) is the required bonding jumper in 250.104(A)(1) and is connecting to the grounding electrode (the underground water pipe). It is convenience that lands the bonding jumper on both sides of the meter not a requirement. What is required is that one end land on the grounding electrode (the first five feet) and the other end could land at any accessible point on the metal water pipe up to and including the far end to the hot water pipe.
If I have the grounding electrode conductor installed within the first five feet of the point of entry then I can install another bonding conductor to any point on the interior water pipe back to the panel and still be code compliant.
If there is not 10 feet of metal water pipe in contact with earth then the grounding electrode conductor is not required.
For example; a metal pipe extends only nine feet from the house and non-metallic pipe is installed from that point to the water supply no grounding electrode conductor is required.
How to bond the interior metal water pipes has been the subject of many debates. Just what is to be bonded on the interior and when is it required?
If the metal water pipes are not 100% metal water pipes then the bonding requirement moves to 250.104(B) and the equipment grounding conductor for the circuit likely to energize the pipes can be the bonding conductor.
If there is less than 10 feet of metal water pipe in contact with earth and the interior is not 100% metal water pipe then there is no requirement to connect any conductor to the pipe itself. Any piece of electrical equipment that is connected to the water system will have an equipment grounding conductor that will fulfill the requirements of 250.104(B). If the circuit supplying any equipment connected to the partial metal water pipe does not have an equipment grounding conductor then the requirement to bond would be required.
I will be more than happy to answer any questions on this matter and give references to my opinion. If you would like send me a PM and we can discuss it future through email complete with illustrations.