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Panel 0-21 has a mandate "To promote the development of ship management and engineering techniques concerning the conservation of energy and reduction of vessel operating costs." One of the first items which the Panel decided to address was the development of a publication containing guidelines for the most efficient and cost-effective residual fuel oil handling and combustion practices. This bulletin was consequently written to recommend particular hardware and operating practices and provide the engineering, economic and management rationale supporting those recommendations based upon the experiences and practices of Panel members. The wide variety of ship types, operating characteristics, and other circumstances existing in the marine industry dictate that there will surely be exceptions to every rule, and this bulletin requires interpretation by knowledgeable engineering managers to be applied, cost-effectively to specific vessels. Nevertheless, the recommendations included herein represent the consensus of the Panel and are being published with the intent of advancing practical marine engineering technology.