How can this even work

[Steve Myers]

It must be my week for finding "who would have thought" wiring.
Inspecting a disconnect for a dock on the lake I found the following:
See Photo please.
The disconnect panel is being feed with two hot conductors only.
The 120v circuit is off one side.
The ground/neutral buss is grounded to ground rod drive at the shore.
The 3 way switch travels for the lights are made up from the romex showing. The switch leg at house does not have the ground attached.
The outlets are gfci receptacles. They show wiring OK and trip out with the test button.
The 50 amp shorepower breaker trips with the test button.
The owner said it was wired 15 years ago.
We are currently under NEC 2005.
How can this even be working?

[Jim Port]

I hate to call BS, but I don't remember the color jacketed NM being that old. Also since you say that panel is for a dock, I will assume that conduit is outside. NM used outside is not allowed.

Prior to the 08 a 3 wire feeder would have been allowed as long as no other metallic paths existed between the building and the dock. The neutrals and grounds would have be bonded.

[John Arnold]

Sounds like the neutral is the earth, literally.

[Jerry Peck]

This is what I see (among many other things, but this should help explain part of what you are asking):

The back center raceway contains a green conductor, a white conductor, a red conductor, and a black conductor, all of which are the feeders as the red and black conductors go to the breaker marked shore power, with the white conductor also going to that breaker and then continuing on albeit with a smaller conductor size, to the ground/neutral terminal bar. That indicates to me that the breaker marked shore power is a main for this panel, which is supplied with 120 volt / 240 volts.

I did not get into what is wrong in that panel.

[Steve Myers]

The conduit with the red, black, white and green go to the 50 amp shorepower outlet. That white is the load side of 50 amp GFCI. The line side of it goes to the common buss bar used for neutral and ground. The only wires from the house panel are the two conductors in the same conduit as the 3 way switch travelers. The dock lightss get their power from the 20 amp breaker that is above the 50 amp breaker but did make my photo.

[Jerry Peck]

So this is not the panel at the dock? It is the panel which feeds the dock and is located at the house?

Do you have a photo showing the entire panel?

[Steve Myers]

This panel is at the seawall used as required form of disconnect. It is feed off the house panel. I am off the rest of the week, and the additional photos are at the office. Here is crude drawing.