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Conoco Warim Ltd. developed and incorporated a comprehensive Environmental Impact Management Program into the Digul-1 drilling project in the Warim concession in East Irian Jaya. The program was essentially comprised of three major parts, namely:- An Environmental Baseline Study,- Operating Guidelines for the Monitoring of the Environmental Impact and Implementation of Corrective Actions to ensure minimization of environmental impact during construction, drilling and demobilization operations and,- A comprehensive Clean up, Restoration and Reforestation (CRR) Plan.This paper discusses each of the three major parts of the environmental impact management program. However, it will primarily focus on the importance of the role that the baseline study plays in the overall execution of an effective environmental impact management program.