I would get a volt meter and see what kind of voltage you have on the ground circuit. You probably have a bad device somewhere else on the system (could be the extension cord as others have said, but it could be another heater, a light circuit, or something else). Driving a ground rod may just cause you to trip a breaker or blow a fuse. You need to track down where current is getting into the ground, and I would bet that the ground at the pen is not continuous back to your breaker panel. You may have a perfectly good wire with a corroded ground connection which was burned when the defective device failed, creating an open circuit in the ground. Until you track it down, all other parts of that circuit are not safe. Do you have any triplex aluminum (old overhead service) as part of your distribution system? If you do I'd check it out first. The quick solution is to cut the ground prong off the tank heater so it does not get the feedback, but of course that would not meet any code or safety requirements.
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