So, if the neutral lugs are part of the grounding bar which is bonded to the grounding electrode system, then what is this conductor doing ? first impression is that the tape should be white indicating a neutral (grounded conductor), but I can't trace anything back to the equipment and only go on the assumption of what is being revealed.
When you said water heater it made me think about another setup whereas the two conductors hitting the neutral lug are actually hot conductors and the grounding (green tape) are neutral carrying conductors. As an example baseboard electrical heating elements whereas there are 2 conductors and a bare conductor, both the white and black conductors (romax) are actually two ungrounded conductors and the bare conductor acts as a neutral.
Is that what's going on here in this example?
Also how is a simultaneously disconnect achieved with 3 sets of 2 poled 40 amp breakers?
I also am not an electrical inspector, but am curious.
thanks