The inspectors observed one fuel element in a position that indicated it was not fully seated in its normal position within the grid plates. Specifically, this fuel element was slightly raised and angled and sitting outside of the nozzle opening on the lower grid plate. The inspectors also observed the presence of a small amount of material that was once molten deposited on the lower grid plate surfaces near the displaced fuel element nozzle. While actual conditions inside the fuel element during the event are still under investigation, the inspectors note that the aluminum alloy used for fuel cladding would melt if temperatures reached a range of 1076°F - 1202°F (580°C - 650°C). Although the inspectors have observed the licensee’s remote visual inspection activities, additional information is needed to draw definitive conclusions about the condition of the fuel element and deposited material. Based on primary coolant and confinement exhaust stack air sample results, inspectors’ observations, and interviews with NIST staff, the inspectors preliminarily determined the fuel temperature safety limit was exceeded for at least a single fuel element (likely the displaced fuel element), resulting in fuel plate damage (i.e., blistering, cracking, and melting) in that element. At the time of this report, the inspectors note that the licensee is still investigating the positioning and condition of the fuel element.