On December 21, 2006, a Notice of Violation (NOV) and Proposed Imposition of Civil Penalty in the amount of $3,250 was issued for a Severity Level III problem composed of three violations. The violations involved (1) the failure to use a minimum of two independent physical controls to secure a portable gauge from unauthorized removal when the gauge was not under the control and constant surveillance of the licensee, (2) the failure to control and maintain constant surveillance of licensed material in an unrestricted area, and (3) the failure to immediately report the loss of licensed material. Specifically, an authorized user loaned a vehicle containing NRC licensed material in a portable gauge to an unauthorized individual. Although the gauge was secured to the vehicle in its locked transport container in the rear seat of the vehicle (one barrier), the second barrier (locked door) was compromised when the authorized user gave the vehicle keys to the unauthorized individual who drove off with the vehicle. As a result, only one independent physical barrier to secure the portable gauge and prevent its unauthorized removal remained. The gauge was then left unsupervised in the public domain for approximately four days. Additionally, the NRC was not notified of the missing gauge as required.