Earlier renormalized theories for collisionless drift wave turbulence were deficient in several respects when &ohgr;<kzviand the principal perpendicular motion is the E×B drift. The earlier theories did not preserve the perpendicularity between the E×B ion current and the electric field E and consequently, did not conserve energy. In addition, earlier theories did not correctly treat the caseni∼e&fgr;/Tin which the nonlinear convective term ‐&fgr;×B⋅‐nishould be very small. These problems are analyzed and corrected in a new version. The new theory predicts that drift wave energy is converted into parallel ion energy, producing a damping rate &ggr;∥=−(kzvi/&ohgr;)2k⊥2D, whereDis a test particle diffusion coefficient. For a fluctuating potential &fgr; due only to drift waves,Dis greater than zero only when the thresholde&fgr;/T∼ (k⊥Ln)−1for ion stochastic motion is exceeded. The nonlinear stabilization will occur slightly above this threshold if &ggr;e/&ohgr;< (kzvi/&ohgr;)2(&ggr;eis the linear growth rate). For this case the density diffusion coefficientDn(which is less thanD) will beDn∼&ggr;e/k⊥2.