Outside feeder

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Location
NE (9.06 miles @5.9 Degrees from Winged Horses)
Occupation
EC - retired
Background:
Two years ago we pulled 1/0 1/0 1/0 2 urd in 2" DB from a building that houses the Service Entrance equipment, Generator, 400A transfer switch and tranformers for a customer. The feeder goes to a small building that with a single 480v 30 hp VFD More than ample for an additional small 480v load.

Now. Add 30 HP motor 100' further out. Installed 200 amp disconnect at start of feeder, 150 A fusing and tap wires at that point. Install 200 Amp terminal box on outside of small building, and from this TB extend raceway another 100' to new load.

My intent was to use the same 1/0 that we had used before. For whatever reason they, my help, dropped the size to 2-2-2-4 from TB on out to new motor Pump Panel. I feel they violate the tap rules by doing it this way. My suggestion was that unless they can come up with a way around it, some Saturday of their choice, they pull in the 1/0. Outside Feeder is my only thought. Comments?
 
Outside taps can be of unlimited length. What specific tap rule do you feel is being violated?
 
Here's the code reference:

240.21(B)(5) Outside Taps of Unlimited Length. Where the conductors are located outdoors of a building or structure, except at the point of load termination, and comply with all of the following conditions:
(1) The conductors are protected from physical damage in an approved manner.
(2) The conductors terminate at a single circuit breaker or a single set of fuses that limit the load to the ampacity of the conductors. This single overcurrent device shall be permitted to supply any number of additional overcurrent devices on its load side.
(3) The overcurrent device for the conductors is an integral part of a disconnecting means or shall be located immediately adjacent thereto.
(4) The disconnecting means for the conductors is installed at a readily accessible location complying with one of the following:
a. Outside of a building or structure
b. Inside, nearest the point of entrance of the conductors
c. Where installed in accordance with 230.6, nearest the point of entrance of the conductors
 
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