Abstract: The pipe racking system is designed to handle drilling tubulars (primarily drill pipe and drill collars) between the racked or setback position and the well center. The racking system can mechanically grasp a stand of pipe, lift the pipe sufficient for free movement, and deliver the pipe to either the setback area for storage or to well center to be added to the drilling string. The purpose of this newly developed system is to move pipe safely and efficiently in the vertical position for drilling operations. Together with the use of its mechanized fingerboard, the system automates the process of handling and storing pipe vertically, thus eliminating the need for a worker at the racking board level. The system is capable of being installed within the masts of smaller rigs and may remain installed in the mast during rig moves thus minimizing any disassembly for rig-down.