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In June 1990, during a three-site inspection of cylinders being used for long-term storage of solid depleted UF<sub>6</sub>, two 14-ton cylinders at Portsmouth, Ohio, were discovered with holes in the barrel section of the cylinders. An investigation team was immediately formed to determine the cause of the failures and their impact on future storage procedures and to recommend corrective actions. Subsequent investigation showed that the failures most probably resulted from mechanical damage that occurred at the time that the cylinders had been placed in the storage yard. In both cylinders evidence pointed to the impact of a lifting lug of an adjacent cylinder near the front stiffening ring, where deflection of the cylinder could occur only by tearing the cylinder. The impacts appear to have punctured the cylinders and thereby set up corrosion processes that greatly extended the openings in the wall and obliterated the original crack. Fortunately, the reaction products formed by this process were relatively protective and prevented any large-scale loss of uranium. The main factors that precipitated the failures were inadequate spacing between cylinders and deviations in the orientations of lifting lugs from their intended horizontal position. After reviewing the causes and effects of the failures, the team's principal recommendation for remedial action concerned improved cylinder handling and inspection procedures. Design modifications and supplementary mechanical tests were also recommended to improve the cylinder containment integrity during the stacking operation.