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MIL eliminators aren't to be used on O2 sensors, because you're right - the engine NEEDS O2 sensors to set a proper A/F ratio.
MIL eliminators are only used on CAT MONITORS, which are technically O2 sensors, but don't monitor your A/F ratio; they only gauge the efficiency of your catalytic converter.
If you have an O2 sensor DOWNSTREAM from a cat, it will need a MIL eliminator when the cat is eliminated. The 99-00 Cougars have two such sensors that need to be jumped when installing headers. My 4-cylinder Saturn has one.
The upstream O2 sensors (the ones closest to the cylinder head) are the A/F monitors - those you do not mess with.
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