For electrical construction, you want to consult the NEC instead of the NFPA 70. The NEC Article 250 deals with grounding and bonding.
With that said, the answer to "Would this be an approved grounding method" is probably not. Article 250.52 lists electrodes permitted for grounding as (1) metal underground water pipe, (2) metal frame of building/structure, (3) concrete-encased electrode, (4) ground ring, (5) rod and pipe electrodes, (6) other listed electrodes, (7) plate electrodes, or (8) other local metal underground systems or structures. The common link between all of these is a physical connection to the earth. So, unless the conduit goes underground, you'd be hard-pressed to say that it's a legal ground. Even then, I wouldn't use the conduit as a ground because if someone upgrades a portion of the system with non-metallic conduit, your ground continuity goes away.
I find it hard to believe that the feeder only uses the conduit for a ground. If the service entrance panel is grounded to a grounding electrode, then you'd have to run a ground wire to the feeder panel. Usually, the conduit is "grounded" in order to prevent it from being charged during a ground fault (personnel shock protection). This case could be an exception, however.
Perhaps the panel is ungrounded? Do you use an ungounded electrical distribution?