THE METALWORKING INDUSTRY HAS LONG RECOGNIZED THE BENEFITS OF USING CHEMICALS TO ENHANCE LUBRICATION AND COOLING IN CHIPMAKING OPERATIONS. THE USE OF THESE CHEMICALS, AND MORE IMPORTANTLY, THE DISPOSAL OF THESE CHEMICALS, IS COMING UNDER THE CRITICAL EYE OF GOVERNMENT- SUPPORTED AGENCIES LIKE THE U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) AND THE OCCUPATIONAL SAFETY AND HEALTH ASSOCIATION (OSHA). TO MEET THE NEW EPA AND OSHA REGULATIONS, FORMULATORS MUST NOW CAREFULLY SELECT A BALANCE OF MATERIALS WHICH ENHANCE CHIPMAKING PERFORMANCE IN A WIDE VARIETY OF APPLICATIONS ON A BROAD RANGE OF METALS. THE COMPONENTS MUST ALSO BE SAFE TO USE AND EASY TO DISPOSE OF. TO MINIMIZE DISPOSAL, RECYCLING IS NOW AN OPTION FOR BOTH THE SMALL AND LARGE USER, WHETHER SMALL INDIVIDUAL SUMPS ARE INVOLVED OR WHETHER A CENTRAL SUMP IS USED. THIS PAPER REVIEWS THE BASIC PRINCIPLES OF LUBRICATION, NEW TECHNOLOGY