Morning Report for June 8, 1999

                       Headquarters Daily Report

                         JUNE 08, 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 III  JUNE  8, 1999

Licensee/Facility:                     Notification:

United States Enrichment Corporation   MR Number: 3-99-0051
Portsmouth Gaseous Diffusion Plant     Date: 06/08/99
Piketon,Ohio                           VIA Resident Report
Dockets: 07007002

Subject: DERAILMENT OF LIQUID URANIUM HEXAFLUORIDE RAILCARS

Discussion:

On June 2, 1999, at 0925 hours, three railcars loaded with nine (three
each) liquid uranium hexafluoride 14-ton cylinders derailed during
movement from the Tails area at Building X-330 to a designated liquid
uranium cooling area. The three railcars were pulled at less than 2 mile
per hour and approximately 500 yards when the spotter noticed that wheels
on two railcars had come off the track. The spotter immediately notified
the operator and the movement was stopped.

The cylinders were not damaged during the event and are secure on the
railcars. The cylinders completed the required five-day cooling period on
June 7. The certificatee plans to remove the cylinders from the railcars
today (June 8) using an approved procedure. The plant staff is performing
a root cause investigation that is estimated to be completed on June 18,
1999.

Regional Action:

The resident staff is monitoring the cylinder movement and the
certificatee investigation.

Contact:  David J. Hartland          (630)829-9603
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