I appreciate everyone's input, from both sides, pros & cons to either option I guess. Reading through this has actually given me a new idea, which may not do anymore than to ease my mind regarding the possible fire hazard, but even if that's really all it does, it will be worth the effort.
I like having the GB inside, protected from the elements, to minimize corrosion issues. My closest, and most logical, ground point is also inside, as I noted in my initial thread. So, if the GB were outside, the path to ground would still pass through the wall to get to the interior water line.
Given that, my thought is to keep it all inside, but maybe isolate it somewhat. I have excess cable, so think I'll mount an electrical junction box of some sort part way down on the concrete basement wall. The GB can then be removed from the floor joist above and mounted inside of that box, behind a cover, completely enclosed. I would then only have about a 3' vertical run of ground wire down to the water line.
Any thoughts on that idea?
Also just want to say this forum is the most useful site I've ever stumbled across on the web, THANKS!:up
A couple of thoughts: First, the junction box really doesn't do anyting for you inside the house. I'd go ahead and just mount the ground block on a floor joist.
Second, although it doesn't strictly meet code, you're probably OK grounding to the nearest water line, although you need to make sure that you have a continuous copper line all the way back to the grounding point of the electrical service. In other words - no plastic pipe spliced in, or a dielectric union somewhere. You probably won't have a dielectric union unless you're on a hot water line (they're used at HW heaters, mostly). So, ground to a COLD water line. If the actual ground wire from the ground block to the grounding point is subject to damage (exposed within reach of occupants), it should be in conduit to protect it.
Brad