"INTRODUCTION This is the fourteenth environmental protection expenditures of the petroleum industry within the United states prepared by the American Petroleum Institute""s Environmental Affairs Department. The report summarizes environmental expenditures for air@ water@ land and other programs. Capital@ administrative@ operating and maintenance and research and development expenses are included. Expenses are also tabulated for each industry sector- exploration and production. Transportation marketing and manufacturing. The same format has been used for each survey so that annual expenditures for a specific reporting period can be readily compared with previous annual expenditures. However@ since the number of responding companies varied from survey to survey@ the reporting base for each may be slightly different. Expenditures listed are those actually reported to API rather than the industry's total expenditures. Partial expenditures have not been extrapolated to represent total industry expenditures. The report includes the percentages of refinery capacity represented by survey respondents during each of the ten years covered. The questionnaire used in the survey is found in Appendix A. The survey was developed after consultation with representatives of all petroleum industry disciplines. It is the same questionnaire used in previous API surveys. The questionnaire defines which expenses should be included or excluded and contains examples to assist in categorizing expenses by industry sector and environmental media. The survey also includes guidelines for calculating expenditures on environmental activities. These guidelines cover all phases of industry operations and provide a uniform procedure for determining environmental expenditures. Although respondents were urged to report actual cost data in some cases it was necessary to estimate expenses. Questionnaires were submitted to the corporate offices of API member companies and to members of the National Petroleum Refiners Association. Companies participating in the survey reported environmental expenditures of over $31 billion for the 10 year period ending in 1982. These companies represented@ in 1983@ approximately 81% of refining capacity@ 77% ofrefining capacity of the U.S.petroleum industry. While this report contains information on environmental expenditures during 1974 to 1983@ it should be noted that the American Petroleum Institute has collected expenditure data since 1966. Figure 1 shows total environmental expenditures from 1967 to 1982. Detailed information on the distribution of these expenses can be fond in the distribution of these expenses can be found in the report for the appropriate period. A listing of reports from previous years is contained in Appendix B."