Thanks for all your comments.
Just a follow up to some of the questions and comments.

John, I also suspect no permit as I saw no sticker on the box, and I would like to believe no one would let this pass an electrical inspection. That said our utility provider has required the meters to be mounted on the exterior for the last 10 years or so whenever their is an upgrade.
The water pipe ground is "ok", as I followed it back to the service entrance.

Dave and Richard, Yes I see that the box does not contain any fuses. Thanks, my bad, I misread the box. The pic does not show it but there is another wire at the weatherhead that is capped off by the utility.

James, Yes the house had quite a few electrical problems. The dryer, stove, range are all gas, and I told my client that there was no 220 in the house and until the service etc. was changed the panel box could not support electrical 220 appliances, because there was not enough amps coming in and presently no 220 volts.

I told my client when I left that the box needed to be upgraded (yes I know its unsafe), and my report will defiantly convey the same.

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