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Following Agreement State Report was received via facsimile. At approximately 9:00 AM January 29, 2007, the Agency was informed that the Licensee had a Nuclear Density Gauge stolen from the back of a pickup truck, while the user was at his residence. The missing gauge is a CPN Model MC-3 gauge, SN 8853. The theft occurred between 4 - 6:15 AM on January 29, 2007. The gauge contains 8 mCi (milliCuries) of Cesium-137 and 40 mCi (milliCuries) Am:Be-241. The Phoenix PD is investigating and issued report number 2007-701-92664. The Licensee is offering a $500.00 reward for the recovery of the source. A press release is to be made by the licensee. The Agency continues to investigate. First Notice: 07-001 The states of CA, NV, CO, UT , NM, and U.S. NRC , FBI and Mexico are being notified of this event.

• * * UPDATE PROVIDED BY GODWIN TO KOZAL ON 03/2/07 AT 1303 VIA FACSIMILE * * *

On February 29, 2007, MRM notified this Agency that at 3:15 that afternoon, MRM had received a phone call from a private citizen that some person had tried to sell the gauge to them. The gauge was retrieved in good working condition by the licensee. Local authorities were notified by the licensee. Notified R4DO (Powers), FSME EO (Wastler) and Mexico (via e-mail). 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.