[DOE LETTERHEAD]

July 31, 2002

The Honorable John T. Conway
Chairman
Defense Nuclear Facilities Safety Board
625 Indiana Avenue, NW.
Suite 700
Washington, D.C. 20004

Dear Mr. Chairman:

Enclosed is the quarterly report for Recommendation 98-2 for the period April 1 through June 30, 2002.

During this reporting period, the Department made progress toward completion of all commitments. Sixteen out of twenty-six commitments have been delivered, two have been rendered moot by subsequent events, and eight remain outstanding.

During this quarter, in partial fulfillment of Commitment 4.3.3, the National Nuclear Security Administration approved the Phase I Transportation Safety Analysis Report (SAR) and its associated implementation plan. The SAR is classified and has been provided to your site representative. The Phase I implementation plan is enclosed.

This report and our discussions over the past month concerning the pending revisions to the implementation plan provide a complete picture of our progress toward achieving the goals of Recommendation 98-2. Since a formal briefing would not add additional information, I recommend that we not schedule one for the quarter now concluding. A copy of the viewgraphs we would present at the customary quarterly briefing is enclosed.

In mid-August (tentatively, August 16), I will be at the Pantex Plant to review progress toward accelerating tooling and several other safety-related matters. We would like-for your staff to attend this review.

If you have any questions, please contact me or have your staff contact Jeff Underwood at 301-903-8303.

Sincerely,

David E. Beck
Assistant Deputy Administrator
for Military Application and
Stockpile Operations
Defense Programs

3 Enclosures
(Note: Enclosures not available, it contains privileged information.)

cc w/enclosures:

M. Whitaker, S-3.1
J. McConnell, DNFSB
W. Andrews, DNFSB
J. Arthur, AL