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Following Agreement State Report was received via e-mail Description of Incident: DRH received notification on 1-28-07 from Mississippi Emergency Management Agency (MEMA) about a Troxler Model 3411 M/D gauge, Serial # 9533, that had been reported stolen. The gauge belonged to Aquaterra Engineering. The RSO was contacted and he stated that the gauge had been locked in a tool box. The tool box was not big enough to put the shipping container in it also, so the shipping container was in the bed of the truck. The RSO stated that the lock was cut on the tool box allowing the gauge to be removed. He also stated that the gauge's source rod was locked. Issued press release on 1-29-07. Date of Incident: Sometime between 1-26-07 and 1-28-07 Isotope(s): Cesium-137, 8 millicuries; & Americium-241:Be, 40 millicuries. Describe clean-up actions taken by DRH: None required. List any other actions required of DRH: Licensee will be required to send a written report of stolen gauge within 30 days. List any actions taken to notify NRC, other Agreement States: Notified Meridian, MS, Police Department. Notified Lauderdale County Emergency Management. Notified NRC by E-mail. Notified Alabama Radiation Control by phone. Mississippi Department of Health issued press release. Case Closed: No Record of incident in RAM files: Yes Enforcement action taken: Investigation ongoing. Incident No. MS 07001

• * * UPDATE ON 02/06/07 AT 1235 EST VIA E-MAIL FROM BOBBY SMITH TO MACKINNON * * *

Gauge found on 2-5-07 by unidentified citizen in a garbage dumpster. Notified Meridian Police Department & DRH was contacted. DRH sent inspector to pick up device. Device was undamaged and still locked. DRH returned device to owner on 2-6-07. Describe clean-up actions taken by DRH: None required initially. After found device was retrieved by DRH so leak test could be done. No leakage or contamination detected. List radiation measurements taken by DRH: After found device was surveyed and determined normal readings @ 13 Mr/hr surface. List any other actions required of DRH: Licensee will be required to send a report of stolen gauge within 30 days. List any actions taken to notify NRC, other Agreement States: Notified Meridian, MS Police Department. Notified Lauderdale County Emergency Management. Notified NRC by E-mail. Notified Alabama Radiation Control by phone. Mississippi Department of Health issued press release 1-29-07. Case Closed: No 'Record of incident in RAM files: Yes Enforcement action taken: Investigation ongoing R4DO (Nease) & NMSS EO (Greg Morell) notified. E-mailed to ILTAB. THIS MATERIAL EVENT CONTAINS A "LESS THAN CAT 3" LEVEL OF RADIOACTIVE MATERIAL Sources that are "Less than IAEA Category 3 sources," are either sources that are very unlikely to cause permanent injury to individuals or contain a very small amount of radioactive material that would not cause any permanent injury. Some of these sources, such as moisture density gauges or thickness gauges that are Category 4, the amount of unshielded radioactive material, if not safely managed or securely protected, could possibly - although it is unlikely - temporarily injure someone who handled it or were otherwise in contact with it, or who were close to it for a period of many weeks.