    ATF: Thefts of Explosives from State and Local Government Storage
    Facilities Are Few but May Be Underreported (03-OCT-05,
    GAO-06-92).

    More than 5.5 billion pounds of explosives are used each year in
    the United States by private sector companies and government
    entities. The Bureau of Alcohol, Tobacco, Firearms and Explosives
    (ATF) has authority to regulate explosives and to license
    privately owned explosives storage facilities. After the July
    2004 theft of several hundred pounds of explosives from a state
    and local government storage facility, concerns arose about
    vulnerability to theft. GAO analyzed (1) the extent of explosives
    thefts from state and local government facilities, (2) ATF's
    authority to regulate and oversee state and local government
    explosives storage facilities, (3) the information ATF collects
    about state and local government storage facilities, and (4)
    security oversight measures in place at selected state and local
    government storage facilities.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-06-92
        ACCNO:   A38918
      TITLE:     ATF: Thefts of Explosives from State and Local Government
    Storage Facilities Are Few but May Be Underreported
         DATE:   10/03/2005
      SUBJECT:   Data collection
    	     Explosives
    	     Facility security
    	     Federal facilities
    	     Federal regulations
    	     Inspection
    	     Intergovernmental relations
    	     Larceny
    	     Law enforcement
    	     Noncompliance
    	     Safety regulation
    	     Safety standards
    	     Security assessments
    	     Warehouse facilities

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    GAO-06-92

    United States Government Accountability Office

    GAO

                           Report to Congressional Requesters

    October 2005

    ATF

    Thefts of Explosives from State and Local Government Storage Facilities Are Few
                                but May Be Underreported

    GAO-06-92

    [IMG]

    October 2005

    ATF

    Thefts of Explosives from State and Local Government Storage Facilities Are Few
    but May Be Underreported

                                     What GAO Found

    Judging from available ATF data, there have been few thefts of explosives
    from state and local government storage facilities. From January 2002 to
    February 2005, ATF received only 9 reports of thefts or missing explosives
    from state and local facilities, compared with a total of 205 explosives
    thefts reported nationwide during this same period. During the course of
    our audit, we found evidence of 5 thefts from state and local government
    facilities, 1 of which did not appear in ATF's national database on thefts
    and missing explosives. Thus, the actual number of thefts occurring at
    state and local storage facilities could be higher than that identified by
    ATF data.

    ATF has no authority to oversee or inspect all state and local government
    explosives storage facilities. State and local government agencies are not
    required to obtain a license from ATF to use and store explosives, and
    only licensees-such as private sector explosives storage facilities-are
    subject to mandatory oversight. As a result, ATF has no means to ensure
    that state and local government facilities are in compliance with federal
    regulations.

    While ATF does not collect nationwide information about state and local
    government explosives storage facilities, information about some of these
    facilities is collected-for example, when facility operators voluntarily
    request an ATF inspection. Since January 2002, ATF has conducted 77
    voluntary inspections at state and local storage facilities and found no
    systemic violations. By comparison, all licensed private sector facilities
    must submit a variety of information about their facility-including
    location and security measures in place- to ATF during the licensing
    process. ATF also collects information about these facilities during
    mandatory inspections.

    At the 18 state and local government storage facilities we visited, a
    variety of security measures were in place, including locked gates,
    fencing, patrols, and in some cases, electronic surveillance. All the
    facilities' officials told GAO that they conducted routine inventories.
    But most were not required to be licensed or inspected by state or local
    regulatory agencies. We identified several instances of possible
    noncompliance with federal regulations, related primarily to storage
    safety issues rather than security.

                      Explosives Storage Facility in Pennsylvania

    Source: GAO.

                     United States Government Accountability Office

    Contents

      Letter

    Results in Brief
    Background
    Limited Data Indicate That Few Thefts May Have Occurred at State

    and Local Government Storage Facilities, but the Exact Number Is Uncertain

    ATF Authority to Oversee State and Local Government Explosives Storage
    Facilities Is Limited, as Is ATF's Capacity to Absorb Additional Oversight
    Responsibilities

    ATF Does Not Collect Nationwide Information about State and Local
    Government Storage Facilities, but Does So for Licensed Private Sector
    Facilities

    Security Measures Varied at State and Local Explosives Storage

    Facilities We Visited Conclusions Recommendations for Executive Action
    Agency Comments and Our Evaluation

                                           1

                                          3 6

                                           8

    10

    13

    14 26 27 28

    Appendix I Scope and Methodology

      Tables

    Table 1: Overview of the State and Local Entities We Visited 16 Table 2:
    Types of Physical Security in Place at the 18 Explosives Storage
    Facilities We Visited 20 Table 3: Inventory and Oversight Activities at
    the 14 State and Local Entities Visited 24 Table 4: State and Local
    Entities Visited 30

      Figures

    Figure 1: Type 1 (Permanent Structure) Explosives Storage Magazines in
    Texas and Colorado 17 Figure 2: Type 2 (Mobile) Explosives Storage
    Magazines in Pennsylvania and Tennessee 18 Figure 3: Type 3 (Portable
    Day-Box) Explosives Storage Magazine in Pennsylvania 19 Figure 4:
    Pennsylvania Storage Facility with Interior Barrier Surrounding Type 2
    Storage Magazines 21

    Abbreviations

    ATF Bureau of Alcohol, Tobacco, Firearms and Explosives
    DOJ Department of Justice
    FBI Federal Bureau of Investigation
    OIG Office of the Inspector General

    This is a work of the U.S. government and is not subject to copyright
    protection in the United States. It may be reproduced and distributed in
    its entirety without further permission from GAO. However, because this
    work may contain copyrighted images or other material, permission from the
    copyright holder may be necessary if you wish to reproduce this material
    separately.

    United States Government Accountability Office Washington, DC 20548

    October 3, 2005

    The Honorable Christopher Shays

    Chairman, Subcommittee on National Security, Emerging Threats, and
    International Relations Committee on Government Reform House of
    Representatives

    The Honorable Tom Lantos House of Representatives

    More than 5.5 billion pounds of explosives are used each year in the
    United States. These explosives are used by both public sector entities
    (such as state and local government agencies) and private sector companies
    for a variety of purposes-including mining, construction, avalanche
    control, and law enforcement.1 Under current federal explosives laws and
    regulations, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
    is responsible for licensing and regulating explosives manufacturers,
    importers, dealers, and users. ATF's authority to regulate explosives
    stems originally from the Organized Crime Control Act of 1970 and was
    expanded further by enactment of the Safe Explosives Act in 2002.2 It is
    primarily through its licensing authority that ATF oversees and inspects
    privately owned explosives facilities to ensure they comply with
    explosives storage laws and regulations. With regard to governmentowned
    explosives storage facilities, state and local agencies are also subject
    to federal explosives storage laws and regulations, but exempt from the
    ATF licensing requirements.3

    In July 2004, several hundred pounds of explosives were stolen from law
    enforcement storage magazines at a city/county storage facility in

    1 Law enforcement bomb squads, for example, may store explosives for a
    number of uses- including destroying recovered explosives, dismantling
    explosive devices, and holding explosive materials for evidence.

    2 Specifically, Title XI of Public Law 91-452, 84 Stat. 922, 952 (1970);
    and Subtitle C of Title XI of Public Law 107-296, 116 Stat. 2135, 2280
    (2002), respectively.

    3 An approved storage facility is defined as a place where explosive
    materials are stored, consisting of one or more approved storage
    magazines. A storage magazine is defined as any building or structure,
    other than an explosives manufacturing building, used for storage of
    explosive materials.

    California. The thieves were subsequently arrested and the explosives were
    recovered. Out of concern that state and local government explosives
    storage facilities could be vulnerable to theft, you asked us to provide
    information regarding the security oversight of these facilities. For this
    report, we focused on the following questions:

    1. 	What is the extent of explosives thefts from state and local
    government facilities and how does this compare with the total number of
    explosives thefts reported nationwide?

    2. 	What authority does ATF have to regulate and oversee state and local
    government explosives storage facilities and how does this compare with
    its authority over private sector storage facilities?

    3. 	What information does ATF collect regarding the locations and types
    and amounts of explosives stored at state and local government explosives
    storage facilities and how does this compare with information collected
    about private sector storage facilities?

    4. 	What security oversight measures are in place at selected state and
    local government storage facilities to ensure the safe and secure storage
    of explosives?

    To address these questions, we obtained information from U.S. government
    agencies, law enforcement associations, industry groups, and other experts
    on explosives. More specifically, to obtain the perspectives of U.S.
    government agencies on their efforts to regulate and oversee state and
    local government explosives storage facilities, and to obtain information
    on the numbers of explosives thefts and law enforcement bomb squads, we
    contacted officials from the Department of Justice (DOJ), ATF, and the
    Federal Bureau of Investigation (FBI). To obtain other public sector and
    private sector perspectives on the security oversight of explosives
    storage facilities, we contacted associations representing state and local
    law enforcement agencies and the explosives industry. To determine what
    selected states and localities are doing to provide oversight of
    explosives storage in state and local government sector facilities, we met
    with officials at 14 state and local government entities (13 law
    enforcement bomb squads and one public university) in four
    states-Colorado, Pennsylvania, Tennessee, and Texas-and observed their
    explosives storage facilities. We selected these four states to obtain a
    geographic spread (west, northeast, southeast, and southwest) across the
    country, based on (1) the number of explosives licensees and

      Results in Brief

    reported explosives thefts, (2) the number of law enforcement bomb squads,
    and (3) the location of universities with mining programs.4 Our criteria
    for identifying the type of security oversight measures in place included
    existing federal explosives storage laws and regulations and security
    guidelines issued by the explosives industry. Because we selected and
    visited a limited nonprobability sample of 14 state and local entities in
    the four states, the information discussed in this report cannot be
    generalized to all state and local government agencies that store
    explosives. Additional detail on our scope and methodology is provided in
    appendix I.

    We conducted our work from February through August 2005 in accordance with
    generally accepted government auditing standards.

    Judging from available ATF data, there have been few thefts of explosives
    from state and local government storage facilities. However, reports of
    thefts could be understated by an unknown amount. During the 3-year period
    from January 2002 to February 2005, ATF received only 9 reports of thefts
    or missing explosives from state and local government storage facilities.
    By comparison, during this same time period there were a total of 205
    explosives thefts reported from all sources nationwide. There are two
    federal reporting requirements relating to the theft of explosives-one is
    specific to explosives licensees (and permittees) and the other generally
    applies to "any person who has knowledge of the theft or loss of any
    explosive materials from his stock." While ATF has interpreted this second
    reporting requirement as applying to nonlicensed state and local
    government explosives storage facilities, ATF officials acknowledged that
    state and local government entities may be unclear as to whether they are
    covered under this requirement. Indeed, this lack of clarity issue may
    have contributed to our findings: During our audit, we found evidence of
    five thefts from state and local government facilities, one of which did
    not appear in ATF's national database on thefts and missing explosives.
    Because of this, the total number of thefts occurring at state and local
    government storage facilities could actually be more than the number
    identified by ATF data.

    4 We are not disclosing the names or other identifying information
    relating to the individual state and local entities we visited to ensure
    that security-related information is not unintentionally disclosed.

    Although federal storage requirements are applicable to state and local
    government explosives storage facilities, ATF does not have oversight
    authority with respect to these facilities. With respect to private sector
    facilities, ATF oversight-including the ability to conduct regulatory
    inspections-is linked to the licensing of facilities. Private sector
    businesses and organizations that import, manufacture, or deal in
    explosives are required to obtain a federal license. As a requirement of
    the licensing process, private sector licensees are generally subject to
    mandatory ATF oversight inspections of their explosives storage
    facilities. State and local government agencies that use and store
    explosives are not required under federal explosives law to obtain a
    license from ATF. In addition, ATF does not have specific statutory
    authority to conduct regulatory inspections at state and local explosives
    storage facilities. State and local government storage facilities are
    generally not inspected by ATF, unless the facility operator voluntarily
    requests such an inspection or shares its storage magazine with ATF. As a
    result, ATF has no means to ensure that all state and local government
    facilities nationwide are in compliance with federal storage regulations.

    ATF does not collect nationwide information on the number and location of
    state and local government storage facilities or the types and amounts of
    explosives that are being stored in these facilities. State and local
    government agencies are exempt from obtaining a federal explosives
    license, and they are not subject to ATF oversight authority. As a result,
    ATF has no real way of knowing the precise number of these facilities or
    the extent to which their explosives storage facilities are secure from
    theft. For a limited number of state and local government facilities-those
    that request a voluntary inspection or where ATF shares a state and local
    magazine-ATF conducts inspections that allow it to collect information
    about such things as the location and characteristics of these storage
    facilities. However, because ATF does not have authority to conduct
    mandatory inspections of all state and local government entities, ATF has
    no means to collect this type of information nationwide. Although ATF
    cannot gather information about state and local government entities, it is
    able to collect a variety of information about private sector explosives
    licensees, who operate roughly 7,500 storage facilities and nearly 23,000
    permanent or mobile storage magazines in the United States. Information
    about these storage facilities and the explosives being stored is required
    to be submitted to ATF during the licensing application process.
    Additional information is collected during the course of mandatory ATF
    inspections of licensees. During our audit, we identified various types of
    state and local government agencies that use and store
    explosives-including law enforcement bomb squads, public universities, and
    departments of

    transportation. However, we did not gather sufficient information about
    these entities to reliably estimate the total number of state and local
    government storage facilities and magazines nationwide.

    At the 14 state and local entities we visited, we observed a variety of
    security measures in place at their 18 storage facilities. Regarding
    physical security, most storage facilities had some kind of locked gate to
    prevent vehicle access, and several had fencing surrounding their storage
    facilities or storage magazines. At each of these facilities, officials
    told us they visually inspected or patrolled the facility on a regular
    basis. Four storage facilities also had electronic security systems in
    place-either monitored alarms or video surveillance-although one of these
    was out of service at the time of our visit. Officials at several other
    entities said they were actively planning to implement some form of
    electronic security or were in the process of installing a security system
    in the near future at their storage facilities. These types of security
    measures-fences, vehicle barriers and electronic monitoring devices-all
    exceed the requirements of federal explosives regulations. Regarding
    oversight activities, officials at all the entities we visited told us
    they conducted routine inventories of their storage facilities. Most
    facilities were not required to be licensed or inspected by state or local
    regulatory agencies, although several officials said they had previously
    had their storage facilities inspected by ATF. Two of the 14 entities we
    visited had previously reported a loss or experienced a theft of
    explosives, but only one of these incidents appeared in ATF's nationwide
    theft database.

    To allow ATF to better monitor and respond to incidents of missing or
    stolen explosives, we are recommending that the Attorney General direct
    the ATF Director to clarify the explosives incident reporting regulations
    to ensure that all persons and entities who store explosives, including
    state and local government agencies, understand their obligation to report
    all thefts or missing explosives to ATF within 24 hours of an occurrence.

    We provided a draft of this report to DOJ for its review and comment. DOJ
    agreed with our recommendation and also provided technical comments, which
    we have incorporated into the report, as appropriate.

    Background

    ATF is the chief enforcer of explosives laws and regulations in the United
    States and is responsible for licensing and regulating explosives
    manufacturers, importers, dealers, and users.5 ATF is also responsible for
    regulating most, but not all, explosives storage facilities. ATF's
    regulatory authority over explosives stems from the Organized Crime
    Control Act of 1970.6 This statute imposed controls over the importation,
    manufacture, distribution, and storage of explosives, and was the basis
    for giving ATF enforcement responsibilities for these controls.7 The Safe
    Explosives Act expanded ATF's authority to generally require licenses for
    persons who purchase or receive explosives and background checks on
    licensees and their employees who handle explosives.8

    Under federal explosives regulations, a license is required for persons
    who manufacture, import, or deal in explosives and, with some exceptions,
    for persons who intend to acquire explosives for use. No license is
    required solely to operate an explosives storage facility. However, all
    persons who store explosive materials (including state and local agencies)
    must conform with applicable ATF storage regulations, irrespective of
    whether they are required to obtain an explosives license for other
    purposes. State and local agencies are not required to obtain an
    explosives license to use and store explosives. Similarly, federal
    government agencies, the U.S. military, and other federally owned or
    operated establishments are exempt from compliance with both the licensing
    and the storage regulations. According to ATF data, as of February 2005
    there were 12,028 federal explosives licensees in the United States.9
    Roughly 7,500 of these had some kind of explosives storage facility,
    consisting of 22,791 permanent or mobile storage magazines.

    5 Licenses are issued to persons who manufacture, import, or sell
    explosives, while permits are issued to persons who intend to acquire and
    use explosives. Throughout the remainder of this report, references to
    explosives licenses, licensees, or ATF's licensing authority refer to both
    explosives licenses and permits.

    6 Pub. L. No. 91-452, Title XI, 84 Stat. 922, 952 (1970). The explosives
    regulatory functions of ATF are found at 27 C.F.R. Part 555.

    7 Pursuant to the Homeland Security Act of 2002 (Pub. L. No. 107-296, 116
    Stat. 2135, 2280), ATF's existing enforcement responsibilities, including
    its authority over explosives, were transferred from the Treasury
    Department to the new Bureau of Alcohol, Tobacco, Firearms and Explosives,
    within the Justice Department. All ATF regulations issued prior to that
    time remained in effect.

    8 Subtitle C of Title XI of the Homeland Security Act of 2002.

    9 Including licensees in the District of Columbia, Guam, Puerto Rico, and
    the Virgin Islands.

    ATF storage regulations include requirements relating to the safety and
    security of explosives storage magazines-that is, any building or
    structure (other than an explosives manufacturing building) used for
    storage of explosive materials. Regarding safety, the storage regulations
    include requirements related to location, construction, capacity,
    housekeeping, interior lighting, and magazine repairs, as well as a
    requirement that the local fire safety authority be notified of the
    location of each storage magazine. Regarding security, the ATF storage
    regulations include the following requirements:

    o  Explosives handling. All explosive materials10 must be kept in locked

    magazines unless they are in the process of manufacture, being

    physically handled in the operating process of a licensee or user, being

    used, or being transported to a place of storage or use. Explosives are
    not to be left unattended when in portable storage magazines.

    o  	Magazine construction. Storage magazines must be theft-resistant and
    must meet specific requirements dealing with such things as mobility,
    exterior construction, door hinges and hasps, and locks.

    o  	Magazine inspection. Storage magazines must be inspected at least
    every 7 days. This inspection need not be an inventory, but it must be
    sufficient to determine if there has been an unauthorized entry or
    attempted entry into the magazines, or unauthorized removal of the
    magazine contents.

    o  	Magazine inventory. Within the magazine, containers of explosive
    materials are to be stored so that marks are visible. Stocks of explosive
    materials are to be stored so they can be easily counted and checked.

    Notwithstanding the security requirements described above, ATF storage
    regulations do not require explosives storage facilities to have any of
    the following physical security features-fences, restricted property
    access, exterior lighting, alarm systems, or electronic surveillance.
    Also, while ATF licensing regulations require explosives licensees to
    conduct a physical inventory at least annually, there is no similar
    inventory requirement in the storage regulations applicable to other
    persons who store explosives.

    10 As defined in the federal explosives law and regulations at 18 U.S.C.
    S: 841 and 27 C.F.R. S: 555.11.

      Limited Data Indicate That Few Thefts May Have Occurred at State and Local
      Government Storage Facilities, but the Exact Number Is Uncertain

    According to ATF data, the number of reported state and local government
    thefts is relatively small when compared with the total number of thefts
    that have occurred nationwide. For example, during a recent 3-year period
    (January 2002-February 2005), 9 thefts involving state and local
    government storage facilities were reported. Of these, 5 involved state
    and local law enforcement agencies (1 was later determined to be the
    possible result of training explosives that had been mistakenly
    discarded), 3 others involved state government entities (all
    universities), and the remaining incident took place at a county highway
    department. Two of the 9 incidents occurred in California (including last
    year's theft that was mentioned previously), and no other state reported
    more than one incident. By comparison, during this same period, ATF
    received reports of 205 explosives thefts nationwide from all sources.
    Three states- California, Texas, and Pennsylvania-accounted for about
    one-quarter (53) of the total reported thefts nationwide. According to ATF
    officials, this may be due to the larger numbers of explosives licensees
    and storage magazines located in these three states.

    The amounts of explosives reported stolen or missing from state and local
    government facilities in each reported incident of theft are also
    relatively small when compared with the total amounts of stolen and
    missing explosives nationwide. For example, during a recent 10-month
    period for which data were available (March 2003 through December 2003),
    there were a total of 76 theft incidents nationwide reported to ATF,
    amounting to a loss of about 3,600 pounds of high explosives, 3,100 pounds
    of blasting agents, 1,400 detonators, and 2,400 feet of detonating cord
    and safety fuse. By comparison, over an entire 10-year period (January
    1995-December 2004), ATF received only 14 reports of theft from state and
    local law enforcement storage magazines. In 10 of these incidents, less
    than 50 pounds of explosives was reported stolen or missing; while in 3 of
    the incidents, more than 50 pounds was stolen or missing.11 In 6 of these
    14 cases, ATF data indicate that most or all of the explosives were
    recovered; in the other 8 cases, none of the explosives have been
    recovered.

    While the ATF theft data indicate that thefts from state and local
    facilities make up only a small part of the overall thefts nationwide,
    these reports may be understated by an unknown amount. There are two
    federal reporting requirements relating to the theft of explosives. One is
    specific

    11 For the remaining incident, no details were available on the quantity
    of explosives involved.

    to all federal explosives licensees (and permittees) and requires any
    licensee to report any theft or loss of explosives to ATF within 24 hours
    of discovery. The second reporting requirement generally requires any
    other "person" who has knowledge of the theft or loss of any explosive
    materials from his stock to report to ATF within 24 hours. Although the
    term "person" as defined in law and regulation does not specifically
    include state and local government agencies,12 ATF has historically
    interpreted this requirement as applying to nonlicensed state and local
    government explosives storage facilities. With respect to the second
    reporting requirement, according to ATF, the legislative history of the
    Organized Crime Control Act of 1970 indicates that Congress believed
    visibility over all incidents [emphasis added] of stolen explosives was
    necessary to effectively enforce any federal explosives regulatory
    statute-primarily because of the special problems presented by stolen
    explosive materials and the persons possessing them.

    While ATF has interpreted the theft reporting requirement as applying to
    state and local government explosives storage facilities, ATF officials
    acknowledged that state and local government entities could be unsure as
    to their coverage under the theft reporting requirements. As a result,
    some state and local government entities may not know they are required to
    report such incidents to ATF, and this lack of information could impair
    ATF's ability to monitor these incidents and take appropriate
    investigative action. Indeed, during our site visits and other state and
    local contacts, we identified five state and local government entities
    that had previously experienced an incident of theft or reported missing
    explosives-two involving local law enforcement agencies, two involving
    state universities, and one involving a state department of
    transportation.13 However, one of these five incidents did not appear in
    ATF's nationwide database of reported thefts and missing explosives. Based
    on these findings, the actual number of thefts occurring at state and
    local government storage facilities nationwide could be more than the
    number identified by ATF data.

    12 The term "person" is defined in statute and regulation as "any
    individual, corporation, company, association, firm, partnership, society,
    or joint stock company" (see 18 U.S.C. S: 841(a); and 27 C.F.R. S:
    555.11).

    13 Two of these five incidents occurred at locations we visited; three
    occurred at other locations we identified during the course of our audit
    work.

      ATF Authority to Oversee State and Local Government Explosives Storage
      Facilities Is Limited, as Is ATF's Capacity to Absorb Additional Oversight
      Responsibilities

    With certain exceptions (such as for federal agencies), federal explosives
    law requires all persons who store explosives to conform to applicable
    regulations. However, there is no ATF oversight mechanism in place to
    ensure that state and local government facilities have complied with the
    regulations. With respect to private sector entities, ATF's authority to
    oversee explosives storage facilities is primarily a function of its
    licensing process. However, the licensing requirements described in the
    law and regulations above do not apply to the transportation, shipment,
    receipt, or importation of explosive materials to any state or its
    political subdivision (such as a city or county). That is, government
    entities, such as state and local law enforcement agencies, are not
    required to obtain a federal license to use and store explosives. In
    addition, ATF does not have specific statutory authority to conduct
    regulatory inspections at state and local explosives storage facilities.
    As a result, these facilities are not subject to mandatory oversight under
    ATF's licensing authority or any ATF regulatory inspection authority apart
    from the licensing process.

    ATF may inspect state and local government storage facilities under
    certain circumstances-for example, if the operator of the facility
    voluntarily requests ATF to conduct an inspection. Since January 2002, ATF
    has conducted 77 voluntary inspections at state and local storage
    facilities-34 inspections at facilities that ATF shares with state and
    local agencies and 43 inspections at other state and local facilities.14
    These inspections basically involve checking for compliance with federal
    storage regulations, including verifying proper construction of the
    storage magazine and verifying that the amount of explosives stored is
    consistent with the approved table of distances.15 In addition to
    conducting voluntary inspections, ATF also conducts inspections of state
    and local explosives storage magazines that are shared by ATF and a state
    or local agency. ATF currently shares space in 52 storage magazines,
    including 33 that are owned or leased by state and local agencies. Shared
    magazines are subject to mandatory inspections by ATF, and the inspection
    procedures are basically the same as those described above for voluntary
    inspections. According to ATF officials, no significant or systemic safety
    or security problems have been found during inspections of state and local
    storage

    14 As discussed later in this report, the total number of state and local
    government storage facilities nationwide is currently unknown.

    15 As published in the federal storage regulations, the table of distances
    lists the minimum acceptable distances separating explosives magazines
    from inhabited buildings, passenger railroads, public highways, and other
    explosives magazines.

    magazines. However, regarding those state and local government facilities
    that ATF does not inspect, ATF officials acknowledged they had no way of
    knowing the extent to which these facilities are complying with federal
    storage regulations.

    By comparison with state and local government entities, private sector
    licensees are subject to mandatory ATF oversight and inspection. Under
    provisions of the Safe Explosives Act, ATF is generally required to
    physically inspect a license applicant's storage facility prior to issuing
    a federal explosives license-which effectively means at least one
    inspection every 3 years. This inspection is intended to verify that the
    applicant's storage facility complies with federal regulations regarding
    safety and security, and the inspection requirement applies to original
    license applications, as well as renewals (with certain exceptions).16 In
    addition, the regulations allow ATF to inspect licensees at any time
    during business hours, for the purpose of inspecting or examining any
    records or documents required to be maintained and any explosive materials
    kept or stored at the premises.

    ATF officials stated that if the agency were to be required to conduct
    mandatory inspections of state and local government storage facilities,
    they would likely need additional resources to conduct these inspections
    because they are already challenged to keep up with inspections that are
    mandated as part of the explosives licensing requirements. One factor that
    affects ATF's ability to meet inspection goals is that inspectors have to
    conduct inspections of licensed firearms dealers, manufacturers, and
    importers, as well as explosives licensees. As noted above, ATF must
    physically inspect explosives licensees at least once every 3 years-or
    about one-third (4,000) of the roughly 12,000 licensees each year.
    According to ATF officials, because license applications and renewals are
    not evenly distributed over this 3-year cycle, some years there may
    actually be more or less than 4,000 inspections per year. ATF currently
    has 723 field inspectors, 620 of whom regularly conduct explosives and
    firearms inspections (the others are in supervisory or administrative
    positions). About 20 percent of the inspection time is spent on explosives
    inspections; the remainder is spent on firearms.

    16 An exception is made for "limited" licenses which are good for 1 year
    and allow a limited number of explosives purchases. For new applicants
    (and up to two renewals), ATF may verify the safety and security of the
    applicant's storage facility by means other than an inspection.

    In July 2004, DOJ's Office of the Inspector General (OIG) reported that
    ATF's inspections program was being affected by staffing shortages. The
    OIG noted that in response to passage of the Safe Explosives Act, ATF had
    to divert resources from firearms inspections to conduct explosives
    inspections required under the act. The OIG report further stated that ATF
    had calculated (and reported to Congress) that it needed almost 1,800
    inspectors-including 540 just for explosives inspections-to manage its
    existing inspection workload at that time.17 To help ATF carry out its
    explosives responsibilities, the conferees on the DOJ appropriations act
    for fiscal year 2005 directed funding increases in fiscal year 2005 for
    the hiring of an additional 31 explosives inspectors, for purposes of
    explosives investigations and regulatory compliance.18 In addition, the
    House Committee on Appropriations has recommended additional funding in
    ATF's fiscal year 2006 appropriation, for the hiring of another 50
    explosives inspectors.19 Despite these increases, giving ATF additional
    responsibility to oversee state and local government storage facilities
    could further tax the agency's inspection resources. According to ATF
    officials, because of the legislative mandate to physically inspect
    explosives licensees, the effect of additional state and local government
    explosives responsibilities (without similar increases in inspector
    resources) could be to reduce the number of firearms inspections that ATF
    could conduct.

    17 The OIG disputed these figures, but still estimated ATF needed about
    800 inspectors just for firearms inspections. This is more than the total
    number of firearms and explosives inspectors that are currently on board.

    18 H. R. Conf. Rep. No. 108-792, at 733 (2004).

    19 H. R. Rep. No. 109-118, at 34 (2005).

      ATF Does Not Collect Nationwide Information about State and Local Government
      Storage Facilities, but Does So for Licensed Private Sector Facilities

    According to ATF officials, ATF does not collect nationwide information on
    the number and location of state and local government explosives storage
    facilities, nor does the agency know the types and amounts of explosives
    being stored in these facilities. With respect to private sector
    licensees, ATF collects descriptive information concerning explosive
    storage facilities as part of the licensing process. However, state and
    local government explosive storage facilities are not required to obtain a
    license from ATF, and ATF does not have specific statutory authority to
    conduct regulatory inspections of such facilities. As a result, no
    systematic information about these facilities is collected. For those
    state and local government facilities that ATF does inspect-either
    voluntary inspections of state and local magazines or mandatory
    inspections of shared magazines-some information is collected by ATF.
    During these inspections, ATF collects information about the location of
    the storage magazines, the types and amounts of explosives stored, and
    whether the magazines are in compliance with federal storage regulations.
    According to ATF officials, the information obtained from these
    inspections-along with the results from inspections of licensees-are
    maintained in ATF's N-Spect nationwide inspection database. While
    mandatory annual inspections are required by ATF at each of the 33 state
    and local magazines where ATF shares storage space, there have been only
    77 voluntary inspections of state and local storage magazines since
    January 2002. ATF also has some ability to monitor state and local storage
    facilities at locations where ATF maintains its own storage magazine. ATF
    headquarters and field offices currently have 118 storage magazines
    colocated at facilities with state and local storage magazines. For these
    facilities, ATF collects information about the location of the facility
    and the inspection status of any state and local magazines on site.20 Of
    the 77 voluntary inspections discussed above, 34 were at these colocated
    facilities.

    By comparison, ATF collects a variety of information about private sector
    explosives storage facilities, primarily under its authority to issue
    explosives licenses. For example, ATF license application forms require
    applicants for an explosives license to submit information about their
    storage capabilities. Specific information applicants are required to
    submit to ATF includes the type of storage magazine, the location of the
    magazine, the type of security in place, the capacity of the magazine, and
    the class of explosives that will be stored. ATF also collects information

    20 Such as whether the state and local magazines have been voluntarily
    inspected by ATF.

    about private sector storage facilities during mandatory licensee
    inspections. As noted previously, prior to issuing or renewing an
    explosives license, ATF must generally verify by on-site inspection that
    the applicant has a storage facility that meets the standards of public
    safety and security against theft as prescribed in the regulations.
    Thereafter, ATF may also inspect a licensee at any time during business
    hours-including inspection of storage magazines, examination of explosives
    inventory and sales records, and verification of compliance with ATF
    administrative rules. Because state and local government storage
    facilities are exempt from the licensing process described above, they are
    not required to submit licensing-related information about their storage
    facility to ATF and they are not subject to licensing-related mandatory
    ATF inspections. In addition, ATF does not have specific statutory
    authority to perform regulatory oversight inspections of such facilities
    apart from the licensing process. As a result, ATF is unable to collect
    complete nationwide information about where these facilities are or the
    types and amount of explosives they store.

    During the course of our audit work, we compiled data on state and local
    law enforcement bomb squads that would be likely to use and store
    explosives. At the 13 state and local law enforcement bomb squads we
    visited, we identified 16 storage facilities and 30 storage magazines. At
    these locations, the number of storage facilities ranged from 1 to 2, and
    the number of storage magazines ranged from 1 to 4. According to FBI data,
    there are currently 452 state and local law enforcement bomb squads
    nationwide. The total number of state and local government storage
    facilities and magazines nationwide, however, encompasses other entities
    in addition to law enforcement bomb squads-including other law enforcement
    agencies, public universities, and departments of transportation. The
    precise number of storage facilities and magazines at these locations is
    currently unknown. And because of the limited nature of our fieldwork, we
    cannot generalize about the extent of security and oversight these
    entities may have at their own explosives storage facilities.

    We found that security oversight measures varied at the 14 selected state
    and local government entities we visited. These 14 entities maintained a
    total of 18 storage facilities. With regard to physical security, 13 of
    the 18 storage facilities restricted vehicle access to the storage area.
    Six of the 18 storage facilities also had a barrier immediately
    surrounding the storage containers preventing human access. Official
    personnel at all 18 facilities said they patrolled or inspected the
    storage facility on a regular basis. Regarding electronic security, 4 of
    the 18 facilities had either an alarm or

      Security Measures Varied at State and Local Explosives Storage Facilities We
      Visited

    video monitoring system in place. Inventory and other oversight activities
    at all 14 of the state and local entities included regular, periodic
    inventories of the contents of their explosives storage facilities. In
    addition, a federal, state, or local government authority had performed
    inspections for 9 of the 14 entities. State government agencies in
    Colorado and Pennsylvania required 5 state and local entities we visited
    in these states to obtain licenses to operate their explosives storage
    facilities. However, 2 of these 5 entities did not have the required
    licenses in place at the time of our visit. Two of the 14 entities had
    experienced prior thefts or losses from their storage facilities, and we
    observed storage practices at four facilities that may not be in
    compliance with federal regulations.

    The following sections describe our observations of the explosives storage
    magazines and types of security measures in place at the 18 state and
    local storage facilities we visited. Our criteria for identifying the type
    of security measures in place included existing federal explosives storage
    laws and regulations (27 C.F.R., Part 555, Subpart K) and security
    guidelines issued by the explosives industry (the Institute of Makers of
    Explosives). Most of these security measures are not currently required
    under federal storage regulations (perimeter fencing, for example).
    However, we are presenting this information in order to demonstrate the
    wide range of security measures actually in place at the time of our
    visits.

        Explosives Storage Facilities Varied with Regard to Users and Size

    As shown in table 1, the 14 state and local government entities we visited
    included 11 city or county bomb squads (including police departments and
    sheriffs' offices), 2 state bomb squads, and one public university. Four
    of the 14 state and local entities had two separate storage areas
    encompassing a total of 18 explosives storage facilities among the 14
    entities. As further shown in table 1, 17 of these explosives storage
    facilities were located on state, city, county, or police property. These
    included 3 that were located on state property (such as state law
    enforcement or state university), 7 that were located at police training
    facilities, and 7 that were located on city or county government-owned
    property (such as correctional or water facilities). For example, one
    local entity we visited in Texas had a storage facility located on the
    grounds of a city-owned nature preserve.

      Table 1: Overview of the State and Local Entities We Visited Number Examples
                              State and local entities 14

    Agency type

    o  State bomb squad 2 State police and highway patrol

    o  	City/county bomb Police departments and sheriffs' offices squad 11

    o  Public university 1 School with mining engineering curriculum

    Storage facility locations 18

    Property type

    o  Police training 7 Academy or other training facility

    o  State 3 University, state law enforcement

    o  City/county 7 Correctional facility, water treatment, nature park

    o  Airport 1 Airport grounds

                                  Storage magazines 34

                                     Magazine types

    o  Type 1 (permanent) 10 7 aboveground, 3 underground

    o  Type 2 (mobile) 22 19 box-type, 3 trailer-type

    o  Type 3 (temporary) 2 2 day-boxes used for permanent storage

    Source: GAO observation, comments by state and local government officials,
    and ATF regulations.

    Also, 11 of the 18 explosives storage facilities we visited contained
    multiple magazines for the storage of explosives. As a result, the 18
    facilities housed a total of 34 magazines divided into various types as
    shown in table 1.21 A Pennsylvania storage facility had 4 magazines, which
    was the largest number among the facilities we visited. Figures 1 through
    3 depict different types of explosives storage magazines.

    21 Title 27, section 555.203, of the Code of Federal Regulations defines
    magazine types.

    Figure 1: Type 1 (Permanent Structure) Explosives Storage Magazines in
    Texas and Colorado

                                      Source: GAO.

    Figure 2: Type 2 (Mobile) Explosives Storage Magazines in Pennsylvania and
    Tennessee

                                      Source: GAO.

    Figure 3: Type 3 (Portable Day-Box) Explosives Storage Magazine in Pennsylvania

    At the 18 storage facilities we visited, we looked for the presence of
    exterior and interior fencing, other barriers to restrict vehicle or
    pedestrian access, and security personnel. Federal explosives storage
    regulations do not require any of these physical security attributes;
    rather, the regulations generally require theft-resistant magazine
    construction (including locks) and weekly inspections of magazines. As
    shown in table 2, 13 of the 18 storage facilities restricted vehicle
    access to the facility grounds by way of a locked security gate or by
    virtue of being an indoor facility. Five of the 13 facilities restricted
    vehicle access after normal working hours (nights or nights and weekends).
    Officials at 7 other

                                      Source: GAO.

    All of the 18 facilities contained a variety of high explosives, including
    C-4 plastic explosive, TNT, binary explosives, and detonators. Officials
    from 13 of the state and local entities provided us with estimates of the
    quantities of explosives they were storing, and they reported amounts
    ranging from 10 to 1,000 pounds, with the majority of the entities (9)
    indicating they had 200 pounds or less.

        Different Types of Physical Security Measures at Explosives Storage
        Facilities

    facilities said that vehicle access to the facilities was restricted at
    all times, including the indoor facility in Pennsylvania that was located
    in the basement of a municipal building.22 While these outdoor facilities
    had barriers to vehicle access via roadway, not all of the facilities were
    completely surrounded by fencing or some other perimeter barrier, nor do
    federal storage regulations require them to have such a barrier or
    fencing.

    Table 2: Types of Physical Security in Place at the 18 Explosives Storage
    Facilities We Visited

    Number of storage Type of physical security facilities Examples of
    physical security

    Exterior barrier around storage facility

    o  	Vehicle access restricted Fence gates with electronic or manual 12
    locks

    o  	All access restricted Interior storage in basement of 1 municipal
    building

    o  No exterior barrier 5

                                Extent of access control

    o  Constant 7 24 hours, 7 days a week

    o  Certain periods only 5 Nights and weekends, or nights only

    o  No access control 5 Accessible at all times by vehicle

    o  Extent could not be verified 1a

    Interior barrier around storage magazine

    o  Pedestrian access restricted 6 Chain-link fences with locked gates

    o  All access restricted 1 Multiple interior door locks

    o  No interior barrier 11

                              Extent of personnel presence

    o  	Regular patrols or Bomb squad officers and police officers inspections
    18

    o  24-hour on-site 9a City or county employees

    Source: GAO observation and comments of state and local government
    officials.

    aAt 1 facility, we were unable to determine the extent of access control
    or whether a 24-hour personnel presence existed.

    22 At 1 other storage facility in Pennsylvania, we also observed a vehicle
    barrier in place. However, local officials at this facility did not
    provide information about whether or not the barrier was in place at all
    times.

    Also, as shown in table 2, 6 of 18 storage facilities had an interior
    barrier immediately surrounding their storage magazines to prevent direct
    access by persons on foot. At each of these 6 facilities, the barriers
    consisted of a chain-link fence with a locked gate barring entry by
    unauthorized personnel (figure 4 reflects one of these facilities). At 1
    other facility (the indoor facility in Pennsylvania), the storage
    magazines were in the basement of the municipal building, and multiple
    locked doors were used to prevent access by unauthorized personnel.
    Conversely, at 1 facility in Texas, the storage magazine could be reached
    on foot or by vehicle at any time because it did not have fencing or
    vehicle barriers to deter unauthorized access.

    Figure 4: Pennsylvania Storage Facility with Interior Barrier Surrounding
    Type 2 Storage Magazines

    Source: GAO.

    Officials at all of the 18 storage facilities detailed in table 2 told us
    that official personnel patrolled or inspected the storage facility on a
    regular basis. For example, bomb squad officers said they regularly
    visited the facilities to check on their condition, in addition to
    visiting the facilities to retrieve or place explosive materials in them.
    In addition to bomb squad personnel, officials at 14 of the 18 facilities
    said that police officers from local police departments patrolled the
    facilities to check for any obvious signs of problems such as forced
    entry. However, these police patrols

    typically did not include actual entry into the storage magazines to
    inspect the explosives themselves.

    As further shown in table 2, officials at 9 of the 18 storage facilities
    we visited said that state or local government employees maintained a
    24-hour presence at the facilities. Four of these storage facilities were
    located on the grounds of police training centers, where either trainees
    or facility personnel were present at all times. Two storage
    facilities-one each in Tennessee and Texas-were on the grounds of jail
    facilities where local correctional personnel worked 24 hours a day, 7
    days a week. Two other storage facilities were located on the grounds of
    city/county water or sewage treatment plants, and 1 storage facility was
    located in the basement of a municipal building. One additional facility
    in Pennsylvania was located on the grounds of the police academy, but we
    were unable to determine whether there was 24-hour, on-site presence at
    that facility.

        Some Explosives Storage Facilities Had Electronic Security Measures

    At the 18 storage facilities we visited, we looked for the presence of a
    monitored alarm or video surveillance system. Although no electronic
    security is required under federal regulations, 4 of the 18 explosives
    storage facilities had either an alarm or a video monitoring system in
    place. Specifically, one entity in Texas had 2 facilities with monitored
    alarm systems in place, and two entities in Pennsylvania and Tennessee had
    video monitoring of their explosives storage facilities. The Texas entity
    had alarm systems in place at 2 of its storage facilities. At 1 facility,
    two small detonator magazines-while not alarmed themselves-were located
    inside a building protected by an alarm system. At a second facility, the
    door to an underground storage magazine was alarmed. Regarding the 2
    facilities with video monitoring, the Tennessee facility- which was
    located on the grounds of a local correctional facility-took advantage of
    a video surveillance system already in place to monitor prisoners. The
    Pennsylvania facility with video monitoring was located inside a municipal
    building and was part of that building's overall video security system.

    The remaining 14 of the 18 storage facilities did not have video or alarm
    systems in place at the time of our visit. Officials at 4 facilities told
    us they had alarm systems planned (funding not yet approved), and
    officials at 3 facilities said they had alarm systems pending (funding
    approved and awaiting installation). Officials at 2 facilities also told
    us they planned to install video monitoring. For example, 1 facility in
    Pennsylvania had its video monitoring system destroyed by lightning and
    was planning to

    replace it. However, the local government authority had yet to approve
    funding for the replacement.

    Several officials commented on the feasibility of installing alarm or
    video monitoring systems at explosives storage facilities. At 4 of the
    state and local entities we visited, officials noted that these storage
    facilities are often located in remote areas without easy access to
    sources of electricity. The officials added that this lack of necessary
    electrical infrastructure could be a cost-prohibitive barrier if they were
    required to install some form of electronic monitoring at explosives
    storage facilities. Regarding the possibility of new storage regulations
    that would require an electronic security system at explosives storage
    magazines, officials at 9 state and local entities told us they would not
    object to such a requirement as long as it did not create an undue
    financial burden.

        Inventory and Other Oversight Activities Varied at Explosives Storage
        Facilities

    At the 14 state and local entities we visited, we looked for the presence
    of internal inventory procedures, internal or external inspections, and
    licensing of the storage facility by state or local government agencies .
    Under federal regulations, only explosives licensees are required to
    perform periodic inventories and are subject to periodic ATF regulatory
    inspections of their storage facilities; other persons who store
    explosives are not. As shown in table 3, officials at all 14 of the
    entities we visited told us they performed periodic inventories of the
    contents of their explosives storage facilities. Typically, during these
    inventories, officials said they count all the explosives in the storage
    facility and reconcile them with inventory records maintained either
    manually or in a computerized database.

     Table 3: Inventory and Oversight Activities at the 14 State and Local Entities
                                        Visited

    Number of Type of inventory and state/local Examples of inventory and
    oversight activity entities oversight activities

                                   Internal inventory

    o  Annual 7

    o  	More frequent 7 Conducted monthly, bimonthly, or quarterly

                                  External inspections

    o  ATF only 6 All but one conducted voluntarily

    o  	State or local authority only 1 Conducted by state regulatory
    authority

    o  	Both ATF and state/local 2 Periodic by ATF, plus state/local authority
    inspection

    o  No external inspections 5

                                     License/permit

    o  Required and in place 3 All issued by state regulatory authority

    o  Required and not in place 2 Required by state regulatory authority

    o  Not required and in place 1 Voluntarily obtained by local police

    o  Not required and not in place 8

    Source: GAO observations and comments of state and local government
    officials.

    In addition, 9 of the 14 state and local entities said they had received
    inspections of their storage facilities, and ATF had conducted the
    inspections in all but 1 of these 9 cases. Regarding this 1 case in
    Pennsylvania, officials said a state government authority regularly
    performed these inspections. With regard to the ATF inspections, state or
    local operators of the selected facilities voluntarily requested these
    inspections in all but 1 case (as discussed further below).

    Of the 9 selected state and local entities that received inspections by a
    regulatory authority, 6 entities told us they received them on a periodic
    basis, with another 3 entities having received a onetime inspection (all
    by ATF). A Pennsylvania entity that said it received annual inspections
    from ATF was unique among those we visited because it had also received a
    onetime inspection from a local government authority. This entity was the
    only one we visited to have any type of inspection, either onetime or
    periodic, from a local government authority. Last, a Colorado entity,
    another of the 5 receiving periodic inspections, said it was being
    inspected on a recurring basis by both ATF and a state government
    authority-it was the only entity we visited that fell into this category.

    Also as shown in table 3, 5 of the 14 state and local entities we visited
    told us they were required to obtain a license from state regulatory
    authorities to operate their explosives storage facilities. One entity in
    Colorado had a license to store explosives issued by the state, and this
    entity had also obtained a federal explosives license issued by ATF.
    Officials at this location told us that the state required them to obtain
    the federal license before applying for its mandatory state license.
    Indeed, according to ATF officials, state or local government facilities
    may apply for a federal explosives license if it is required by their
    state regulatory agency. However, once such a license is issued, these
    state and local government facilities must then comply with all the same
    explosives laws and regulations that are applicable to licensed private
    sector facilities.

    Officials at the 14 state and local entities we visited commented on the
    feasibility of mandatory ATF oversight of their explosives storage
    facility. Officials at 13 state and local entities said they did not
    object to the possibility of federal licensing or inspection of their
    explosives storage facilities. Six state and local entities also said that
    they already have close contacts with ATF and would not be concerned about
    additional ATF oversight of their storage facilities. Officials at 3 state
    and local entities noted that additional federal oversight was not a
    concern, as long as they were not held to a higher standard of security
    and safety than ATF requires of private industry.

        Some Entities Had Experienced Explosives Thefts or Reported Losses

    Two of the 14 state and local entities we visited had previously had a
    theft or loss of explosives from one of their storage facilities. At a
    storage facility in Texas, officials told us that criminals had once used
    a cutting torch to illegally gain entry to an explosives storage magazine.
    Some explosives were stolen, but the suspected thieves were later
    apprehended and the materials were recovered. At another storage facility
    in Colorado, officials said that an unauthorized individual had obtained
    keys to an explosives storage magazine and taken some of the material. As
    with the previous case, several individuals were apprehended and the
    materials were recovered. One of these incidents (the theft of explosives
    in Texas) did not appear in ATF's nationwide database of reported thefts
    and missing explosives.23

    23 In addition to the two incidents described above, we also identified
    three other thefts at state and local entities during the course of our
    audit work. These other three incidents were all reported to ATF.

    The law enforcement community has recently taken action to address the
    issue of thefts and security at law enforcement explosives storage
    facilities. In April 2005, the National Bomb Squad Commanders Advisory
    Board-which represents more than 450 accredited law enforcement bomb
    squads nationwide-initiated a program to increase security awareness at
    its members' explosives storage facilities. In a letter to its membership,
    the advisory board encouraged all bomb squad commanders to increase
    diligence regarding explosives storage security. The advisory board also
    recommended that all bomb squads request a voluntary ATF inspection,
    ensure they maintain an accurate explosives inventory, and assess the
    adequacy of security measures in place at their respective explosive
    storage facilities to determine whether additional measures might be
    required-such as video monitoring, fencing, and alarms. This is a
    voluntary program, and it is too soon to tell what effect, if any, it will
    have towards enhancing the security at state and local law enforcement
    storage facilities and reducing the potential for thefts.

        Possible Noncompliance With Regulations at Some Storage Facilities

      Conclusions

    At 4 of the 14 state and local entities we visited, we observed various
    storage practices that may not be in compliance with federal explosives
    regulations. These circumstances appeared to be related to storage safety
    issues, rather than storage security. For example, one explosives storage
    facility was located in the basement of a municipal building and utilized
    small type 3 temporary magazines (known as day-boxes) for permanent
    storage of high explosives and detonators. ATF regulations state that
    these magazines should be used only for temporary storage of explosives
    and may not be left unattended. At another storage facility, a high
    explosives storage magazine housed a small detonator (or "cap") magazine
    in its interior, although ATF regulations generally require detonators to
    be kept separate from other explosive materials. Another storage facility
    contained several boxes of unmarked, 1970s-era plastic explosives
    (specifically C-4), possession of which is generally restricted under
    federal explosives law when the material in question does not contain a
    detection agent. Finally, an official at one storage facility acknowledged
    that because of the weight of explosives currently being stored, their
    storage magazine was in violation of ATF regulations concerning allowable
    distances from other inhabited structures.

    The overall number of state and local government explosives storage
    facilities, the types of explosives being stored, and the number of
    storage magazines associated with these facilities are currently unknown.
    Further, because ATF does not oversee state and local government storage

    facilities as part of the federal licensing process and ATF does not have
    any other statutory authority to conduct regulatory inspections of these
    facilities, ATF's ability to monitor the potential vulnerability of these
    facilities to theft or assess the extent to which these facilities are in
    compliance with federal explosives storage regulations is limited.
    Nevertheless, current federal explosives law as enacted by Congress does
    not provide ATF with specific authority to conduct regulatory oversight
    with respect to public sector facilities. And although we did observe
    possible noncompliance with the storage regulations at some of the state
    and local entities we visited, none of these circumstances appeared to
    make the facilities more vulnerable to theft.

    According to ATF's interpretation of federal explosives laws and
    regulations, state and local government agencies-including law enforcement
    bomb squads and public universities-are required to report incidents of
    theft or missing explosives to ATF within 24 hours of an occurrence.
    However, during the course of our audit work, we identified five incidents
    involving theft or missing explosives at state and local government
    facilities, one of which had not been reported to ATF. Because this
    reporting requirement applies to any "person" who has knowledge of a theft
    from his stock and the definition of "person" does not specifically
    include state and local government agencies, ATF officials acknowledged
    that these entities may be unsure as to whether they are required to
    report under this requirement. On the basis of our limited site visit
    observations and discussions with state, local, and ATF officials, we did
    not identify a specific threat or vulnerability to theft among state and
    local government explosive storage facilities. However, if state and local
    government entities are unsure about whether they are required to report
    thefts and missing explosives, ATF's ability to monitor these incidents
    and take appropriate investigative action may be compromised by a
    potential lack of information.

    Recommendations for 	To allow ATF to better monitor and respond to
    incidents of missing or stolen explosives, we recommend that the Attorney
    General direct the

    Executive Action	ATF Director to clarify the explosives incident reporting
    regulations to ensure that all persons and entities who store explosives,
    including state and local government agencies, understand their obligation
    to report all thefts or missing explosives to ATF within 24 hours of an
    occurrence.

    Agency Comments

    and Our Evaluation

    On September 9, 2005, we provided a draft of this report to the Attorney
    General for review and comment.

    On September 26, 2005, DOJ advised us that the department had no formal
    agency comments and further advised us that DOJ agreed with our
    recommendation and would take steps to implement it. ATF provided
    technical comments, which we have incorporated into the report, as
    appropriate.

    Unless you publicly announce its contents earlier, we plan no further
    distribution of this report until 30 days after the date of the report. At
    that
    time, we will send copies of this report to the House Committee on
    Government Reform; House Committee on the Judiciary; House
    Committee on Homeland Security; Senate Committee on the Judiciary;
    Senate Committee on Homeland Security and Governmental Affairs; the
    Attorney General; the Director of the Bureau of Alcohol, Tobacco,
    Firearms and Explosives; appropriate state and local government officials;
    and other interested parties. We will also make copies available to others
    upon request. In addition, the report will be available at no charge on
    GAO's Web site at http://www.gao.gov.

    If you or your staff have any questions about this report, please contact
    me
    at (202) 512-8777 or EkstrandL@gao.gov. Contact points for our Offices of
    Congressional Relations and Public Affairs may be found on the last page
    of this report. Key contributors to this report were William Crocker,
    Assistant Director; David Alexander; Amy Bernstein; Philip Caramia;
    Geoffrey Hamilton; and Michael Harmond.

    Laurie E. Ekstrand
    Director, Homeland Security

    and Justice Issues

                           Appendix I: Scope and Methodology

      Interviews and Other Contacts

    In reviewing the security of state and local government explosives storage
    facilities, we focused on the Bureau of Alcohol, Tobacco, Firearms and
    Explosives' (ATF) role in overseeing and regulating these facilities,
    including the extent to which ATF's licensing operations address state and
    local government facilities and what authority ATF has to enforce federal
    explosives law and regulations at state and local government facilities.
    In addition, we reviewed the extent to which ATF collects information
    about state and local government facilities, including locations and types
    and amount of explosives stored. To determine what states and localities
    are doing to ensure the safe and secure storage of explosives, we visited
    state and local explosives storage facilities. We also contacted other
    state and local government and explosives industry officials.

    To obtain the perspectives of U.S. government agencies on their efforts to
    regulate and oversee state and local government explosives storage
    facilities, we met with ATF headquarters officials-specifically
    individuals from ATF's Office of Enforcement Programs and Services, Office
    of Field Operations, Office of Strategic Intelligence and Information, and
    Office of the Chief Counsel. We also met with or obtained information from
    officials with the Department of Justice's (DOJ) Office of the Inspector
    General, as well as the Federal Bureau of Investigation's (FBI) Bomb Data
    Center.

    To determine what selected states and localities were doing to ensure the
    safe and secure storage of explosives in state and local government
    facilities, we met with state and local officials in Colorado,
    Pennsylvania, Tennessee, and Texas-specifically 13 state and local bomb
    squads and 1 public university. In these four states, we also contacted
    other state government agencies, including transportation and
    environmental protection agencies and fire marshals. We also contacted
    other public university officials in Arizona, New Mexico, and Utah.

    To obtain additional perspectives of law enforcement and explosives
    industry experts on the safety and security of explosives storage
    facilities, we contacted representatives from the National Bomb Squad
    Commanders Advisory Board, the International Association of Bomb
    Technicians and Investigators, the Institute of Makers of Explosives, the
    International Association of Chiefs of Police, and the National Sheriffs'
    Association.

                           Appendix I: Scope and Methodology

    State and Local Site 	To find out what selected states and localities are
    doing to ensure the safe and secure storage of explosives in state and
    local government facilities,

    Visits	we visited 14 state and local government entities that stored
    explosives, as shown in table 4 below. During these site visits, we met
    with state and local officials and physically observed their explosives
    storage facilities and storage magazines.

                       Table 4: State and Local Entities Visited

                             State level           County level    City level
          State     Law enforcement Public          Sheriff's   Police department
                    university                        office      Fire department
         Colorado                                1                      1
    Pennsylvania               1                                     3
        Tennessee                 1                           1         2
          Texas                                                         3
          Total                                2 1            1         9

    Source: GAO.

    We chose law enforcement bomb squads as the primary focus of our site
    visits because (1) we concluded that state and local bomb squads would be
    the most likely state and local government agencies to have a need for
    explosives storage facilities and (2) there was no other source of
    nationwide information on the number and location of state and local
    government explosives storage facilities. We selected our state and local
    site visits based on the following criteria:

    o  	In selecting which states to visit, we chose those states most likely
    to have significant state and local government and private sector
    explosives activities. The state selection criteria included (1) the
    number of federally licensed private sector explosives companies, (2) the
    number of reported explosives thefts,1 and (3) the number of law
    enforcement bomb squads.2 Using these criteria, we then selected a
    geographic mix of states-specifically one state in the northeast United
    States, one in the southeast, one in the southwest, and one in the west.

    1 Based on explosives licensing data compiled by ATF and explosives theft
    incidents reported to ATF, both as of February 2005.

    2 Based on data about state and local law enforcement bomb squads reported
    by the Bureau of Justice Statistics in November 2000.

                           Appendix I: Scope and Methodology

    o  	Within each state, we selected state and local bomb squads for our
    site visits. These were chosen to represent a mix based on the type of
    agency, size of jurisdiction, and geographic location. We selected two
    state law enforcement agencies, one county sheriff, nine city police
    departments, and one city fire department. These included three
    jurisdictions with populations over 1 million, five with populations
    between 100,000 and 1 million, three with populations below 100,000, and
    two with statewide jurisdictions.

    o  	We also selected one non-law enforcement explosives storage facility
    operated by a state university. This facility was selected as typical of
    the various state universities with mining-engineering programs and
    because it had a significant amount of explosives (over 100 pounds) in its
    storage facility.

    During our site visits, we used a semistructured interview guide to
    conduct interviews with state and local officials and determine the level
    of security at their explosives storage facilities. Our criteria for
    identifying the types of security measures in place included existing
    federal storage laws and regulations (27 C.F.R., Part 555, Subpart K) and
    security guidelines issued in 2005 by the explosives industry (the
    Institute of Makers of Explosives). Not all of the security criteria we
    used are currently requirements under federal storage regulations
    (perimeter fencing, for example). We used these additional criteria to
    demonstrate the wide range of security measures actually in place at the
    time of our visits to these facilities. Also, while we were not conducting
    a compliance audit, during our site visits we observed each storage
    magazine and noted any instances where explosives appeared not to be
    stored in compliance with federal regulations.

    We are not disclosing the names or other identifying information relating
    to the individual state and local entities we visited to ensure that
    securityrelated information is not unintentionally disclosed. Because our
    review was limited to a nonprobability sample of 14 state and local
    entities in the four states, the information discussed in this report is
    illustrative and cannot be generalized to all state and local government
    entities nationwide that store explosives.

    ATF and FBI Data 	ATF provided data related to explosives licensing and
    inspections, as well as relevant law, regulations, and procedures dealing
    with the storage of explosives. We also obtained data from ATF's Arson and
    Explosives National Repository related to incidents of theft and missing
    explosives

    Appendix I: Scope and Methodology

    reported to ATF. FBI provided us with a nationwide list of accredited bomb
    squads-including number, location, and name of agency. In addition, FBI
    provided policies and guidance related to the bomb squad training and
    accreditation process.

    The information we obtained from ATF (data on explosives licensees,
    explosives inspections, and explosives thefts) and FBI (data on the number
    and location of bomb squads) was used to provide background context on the
    number of private sector and state and local government explosives storage
    facilities and to assist us in selecting locations for our site visits. We
    interviewed agency officials knowledgeable about the data, and as a
    result, we determined that the data were sufficiently reliable for the
    purposes of this report. We also obtained data from ATF on incidents of
    explosive thefts and missing explosives at state and local government
    storage facilities. On the basis of our site visits and other audit work,
    we determined that these incidents may be underreported, as discussed
    earlier in this report.

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