This is similar,, maybe not exact but,\ I am curious, where does it allow using water pipe as a grounding conductor? Where does it allow it from another circuit?
In the section you posted.
C) Nongrounding Receptacle Replacement or Branch Circuit Extensions. The equipment grounding conductor of a grounding-type receptacle or a branch-circuit extension shall be permitted to be connected to any of the following: (1) Any accessible point on the grounding electrode system as described in 250.50 (2) Any accessible point on the grounding electrode conductor
If you follow up on where it references 250.50 and continue on, like it specifies you will find this.
250.52 Grounding Electrodes.
(A)
Electrodes Permitted for Grounding.
(1)
Metal Underground Water Pipe. A metal underground water pipe in direct contact with the earth for 3.0 m (10 ft) or more (including any metal well casing bonded to the pipe)
and electrically continuous (or made electrically continuous by bonding around insulating joints or insulating pipe) to the points of connection of the grounding electrode conductor and the bonding conductor(s) or jumper(s), if installed.
So, if you ensure that the pipe is in the earth for 10' and it's electrically continuous, as I mentioned earlier, it is considered a grounding electrode. If it exists in the structure, it's mandated that it be connected as one of the required electrodes for the service. If it's good enough for grounding the service, it's good enough for a branch circuit extension.
Just because it meets the verbiage of the law, doesn't mean it's the best choice. The local plumber or handyman may come along later and install some plastic in there and defeat the whole thing (electrically continuous) and the owner or occupant will be oblivious to the problem. It could put the situation back to square one. Just because it's legal doesn't make it the best choice.
For your second question. "Where does it allow it from another circuit?"
I'm going to make that your homework assignment. You do this routinely and don't give it another thought. When you run multiple circuits in a conduit for example, and use the pipe as the ground return for every circuit, what allows this?
The code is a law book and not a how to manual. It does not describe every situation in detail or provide a one line rule that cover's every situation. This is why I stress that you need to try and understand the "intent" first, so that it may be interpreted for those situations that are not typical or normal. That's why you have a AHJ, to understand the scope and make interpretations.
The NEC code handbook can be a valuable resource for gaining insight into interpreting the NEC, that's what it's printed for. If your serious about getting a good understanding of the NEC, get yourself a copy for some self study. You won't regret it. Send a PM and I'll give a link for you.
MTW Ω