On January 30, 2007, a Notice of Violation and Proposed Imposition of Civil Penalty in the amount of $3,250, was issued for a Severity Level III violation of 10 CFR 30.34 (i), involving the reported theft of a portable nuclear density gauge containing licensed material. The licensee failed to use a minimum of two independent physical controls to secure a portable gauge while it was not under the control and surveillance of your staff, as required. Specifically, the licensee provided one independent barrier by securing the gauge in a locked container and placing it in a locked shed for overnight storage at a temporary job site. However, the licensee failed to provide a second independent barrier when it did not secure the gauge to the shed.