INTRODUCTION One of the most significant long-term trends affecting the future vitality of the petroleum industry is the public's concerns about the environment. Recognizing this trend@ API member companies have developed a positive@ forward looking strategy called STEP: Strategies for Today's Environmental Partnership. This program aims to address public concerns by improving our industry's environmental@ health and safety performance; documenting performance improvements; and communicating them to the public. The foundation of STEP is the API Environmental Mission and Guiding Environmental Principles. API member companies recognize the importance of protecting the environment for the health and welfare of today's citizens@ as well as future generations. API members have publicly expressed their commitment to protecting the environment and the health and safety of their employees and the public by incorporating these concerns into their operations via adoption of API's Guiding Environmental Principles (see facing page)@ which are now part of the API Bylaws. In 1992@ API's Management and Executive Committees and Board of Directors endorsed@ as part of STEP@ adoption of management practices as an API recommended practice and API providing a recommended self assessment process@ which will assist the members' implementation of the API Guiding Environmental Principles. The recommended management practices are intended to act as a bridge between the API Guiding Environmental Principles and individual company activities aimed at improving environmental@ health@ and safety performance. The recommended self-assessment process provides a mechanism for measuring progress in implementing the management practices. These management tools will assist companies in examining existing programs and in designing new programs that will@ over time@ help member companies further minimize the impact of their operations on the environment. These tools provide guidance on what companies can do to meet the goals of the principles but allow great flexibility in how companies define their own programs.