Morning Report for June 22, 1999

                       Headquarters Daily Report

                         JUNE 22, 1999

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           X
REGION I                               X
REGION II                              X
REGION III                             X
REGION IV           X
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION IV  JUNE 22, 1999

Licensee/Facility:                     Notification:

                                       MR Number: 4-99-0019
Sequoyah Fuels                         Date: 06/21/99
Gore,Oklahoma
Dockets: 40008027 License No: SUB-1010

Subject: BREAK-IN AT THE SEQUOYAH FUELS FACILITY

Discussion:

On June 21, 1999, at 10:00 a.m., Sequoyah Fuels Corporation's radiation
safety officer (RSO) informed the NRC that workers noticed that facility
tools, equipment, and property in the main process building had been
disturbed over the weekend. Upon further investigation, the licensee
determined that someone cut the protected area fence located on the
northeast side of the site near the DUF4 building and entered the site
during the weekend. Licensee security determined that the intruder(s)
entered the site's restricted area gate on the northeast side of the site
possibly late Sunday night or early Monday. The RSO conducted some
radiological surveys but found no evidence that licensed material had
been disturbed or removed from the site. The licensee identified only
that some extension cords were removed from the site. Some hand tools and
equipment of nominal valve were removed from the main process building
and taken to the DUF4 building loading dock. However, that property was
left onsite. The licensee reported the break-in to the county sheriff's
office; however, the sheriff's office did not dispatch a deputy.

According to the RSO, the facility has taken corrective actions that
included: (1) blocking the access road to the northeast side of the site
where the intruder(s) gained access; and (2) welding all access gates
shut. The licensee will document this matter on their site problem
report.

This information has been discussed with the State of Oklahoma.

Regional Action:

Region IV will monitor the licensee's followup and corrective actions
during the next routine inspection.

Contact:  Louis C. Carson II         (817)860-8221
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