Headquarters Daily Report

                         MARCH 07, 1997

***************************************************************************
                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           û                   
REGION I                               û                   
REGION II           û                                      
REGION III                             û                   
REGION IV                              û                   
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION II  MARCH  7, 1997

Licensee/Facility:                     Notification:

Babcock And Wilcox                     MR Number: 2-97-0014
Naval Nuclear Fuel Division            Date: 03/07/97
Lynchburg,Virginia                                                        
Dockets: 07000027 License No: SNM-42       

Subject: URANIUM SOLUTION SPILL UPDATE                                   

Discussion:

This is an update of the March 6 Morning Report and event #31883 which   
occurred on March 4, 1997.                                               
                                                                         
The licensee's Post Incident Review Team presented their findings to the 
Emergency Preparedness Committee on March 6.  The team reported that no  
preoperational test had been performed to determine the maximum level to 
which the low level dissolver could be filled and sparged with air       
without overflowing the column.  In addition, column overflow was not    
considered during a Process Hazards Analysis conducted on the low level  
dissolution equipment.                                                   
                                                                         
Based upon the team's findings, the Emergency Preparedness Committee     
approved a single test run with the following restrictions:  1) limit of 
only two buckets of material per batch; 2) the level in the column to be 
monitored and recorded during the run,  with immediate test termination  
if the level exceeds 200 centimeters (less than the level at which the   
overflow occurred) and 3) a process engineer to continuously monitor the 
test.  After completing the test, data will be presented to the Emergency
Preparedness Committee for their approval prior to further use of the    
equipment.   The licensee anticipates this test will be completed on     
March 7.                                                                 

Regional Action:

The Resident Inspector is continuing to follow the licensee's actions.   

Contact:  C. Hughey                  (804)847-7343
_