For pt.II see ibid., vol.39, no.12, p.2575-86 (2001). An operational nonlinear physical inversion (PIn) algorithm for precipitable and cloud liquid water estimate is described. It is suited for a generic conical scanning satellite microwave radiometer acquisition over sea in nonraining conditions. The algorithm does not need any calibration phase and is independent of the availability of in situ data, being consistent in different geographical and climatological situations. Adopted formulation is addressed to provide observational data to help in validating water vapor and cloud fields produced by a numerical weather prediction model. Furthermore, such a technique can be utilized for the purpose of global reanalysis, improving estimates of primary fields of the hydrological cycle. A sensitivity study of the forward model and a comparison between output brightness temperatures and those from a robust numerical code are also reported. The discrepancies that result are considered acceptable with respect to instrumental constraints and computation time.