USED OIL RECYCLING MARKETS

A ND

BEST MANAGEMENT PRACTICES

IN THE

UNITED STATES

October 27, 1992

Presented to:

the National Recycling Congress

September 15, 1992

Boston, MA

Northern Virginia Planning District Commission

7535 Little River Turnpike, Suite 100

Annandale, VA 22003

Phone: 703/642-0700 Fax: 703/642-5077

Contact Robert Arner, Solid Waste Program Manager
USED OIL RECYCLING MARKETS

A N D

BEST MANAGEMENT PRACTICES

IN THE

UNITED STATES

October 27, 1992

Presented to:

the National Recycling Congress

September 15, 1992

Boston, MA

Prepared by:

Northern Virginia Planning District Commission

7535 Little River Turnpike, Suite 100

Annandale, Virginia 22003

Phone: 703/642-0700 Fax: 703/642-5077

Contact:

Robert Arner, Solid Waste Program Manager
USED OIL RECYCLING MARKETS

AND BEST MANAGEMENT PRACTICES

IN THE UNITED STATES

TABLE OF CONTENTS

FOREWORD ........................................................................... v

ABOUT THE AUTHOR ....................................................................v i

1.0 INTRODUCTION TO THE USED OIL MARKET

IN THE UNITED STATES ..................................................................................... 1

1.1 Regulatory History and Definition of Used Oil .......................................... 4

1.2 Definition of “Recycled Oil”........................................................................................ 5

1.3 Used Oil Recycling Rate.......................................................................5

1.4 The Lead Question........................................................................................... 7

1.5 DlY-Generated Used Oil ................................................................................. 7

2.0 THE U.S. USED OIL UNIVERSE & INDUSTRY .......................................... 10

2.1 The Used Oil Generator ................................................................................ 10

2.2 DIY Used Oil Collection Centers ................................................................. 12

2.3 Used Oil Collectors/Transporters ............................................................... 13

2.4 Waste Minimization ...................................................................................... 13

2.5 Road Oiling ..................................................................................................... 14

3.0 USED OIL RECYCLING TECHNOLOGIES .................................................. 16

3.1 Direct Burning ................................................................................................ 16

3.2 Reprocesssors .................................................................................................. 18

3.3 Used Oil Filters ............................................................................................... 21

3.3.1 Mobile Oil Refiner Filtration Technology........................................ 22

3.3.2 Oil Filter Recycling.............................................................................. 23

3.4 Re-refining: Making Used Oil Into a Lubricant Again ............................ 26

3.4.1 Re-refined Consumer Products and Brand Names....................... .27

3.4.2 EPA Guidelines for Purchasing Re-Refined Lubricating Oils......3 0

3.5 Slipstream Used Oil ....................................................................................... 30

ii
4.0 ENVIRONMENTAL ECONOMICS OF USED OIL............................ 33

4.1 Water Contamination .................................................................................... 33

4.2 Air Emission ................................................................................................... 33

4.3 Soil Contamination ........................................................................................ 34

4.4 Environmental Economic Factors of Recycling ......................................... 34

4.5 An Innovative Graduate Thesis Evaluates Used Oil End Uses..............

35

4.6 Conclusions..................................................................................................... 37

5.0 BEST MANAGEMENT PRACTICES.........................................................38

5.1 Good Housekeeping Practices ..................................................................... 38

5.1.1 Handling............................................................................................... 38

5.1.2 Separating Different Types of Used Oils ......................................... 38

5.2 Evaluating Your Used Oil Recycler - A Checklist..................................... 40

5.2.1 Introduction ......................................................................................... 40

5.2.2 Approach .............................................................................................. 40

5.2.3 Used Oil Acceptance ........................................................................... 40

5.2.4 Processing ............................................................................................. 41

5.2.5 Products ................................................................................................ 41

5.2.6 Compliance........................................................................................... 42

5.2.7 Assessment ........................................................................................... 44

5.3 Possible Used Oil Collection Centers Operating Procedures...............

44

5.4 Local Used Oil Recycling Coordinator Suggestions ................................. 45

5.5 How Many Used Oil Collection Centers Should a Community Have.. 48

6.0 CONCLUSIONS........................................................................ 50

7.0 ORGANIZATIONS AND ASSOCIATIONS ......................................... 63

APPENDICES

I. USED OIL REFERENCES........................................................ 52

II. LIST OF VENDORS................................................................... 55

II.a. Direct Burning...................................................................................... 55

II.b. Reprocesssors ....................................................................................... 55

II.c. Bypass Oil Filtration System.............................................................. 55

II.d. Used Oil Filter Recycling.................................................................... 56

II.e. Re-refining: Manufacturers/Vendors/Distributors..................... 58

II.f. Slipstreaming ....................................................................................... 61

III. NATIONAL ORGANIZATIONS & ASSOCIATIONS................................ 63

i i i
Table A:

Table B:

Table C:

TABLES

Petroleum Tree. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Summary of NORA Fuel Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Effect of Virgin Fuel Oil Price Fluctuations

on Price of Used Oil Fuel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . ... 11

INSERTS

Used Oil Disposition in the U.S. - 1988 .............................................................vii

Used Oil Management System Overview............................................................9

Summary Option Diagram ..................................................................................15

Direct Burning/Energy Recovery.......................................................................17

Fuel Oil Reprocessing ...........................................................................................19

Typical Automqtive Lubrication System...........................................................20

Re-refining for Use as Lubricant Basestock .......................................................25

Slipstreaming ......................................................................................................... 29

Select Refinery Feedstock Used Oil Management System .............................. 31

Used Oil Fuel Classification Under RCRA........................................................43

Generation of Used Automotive Oils by State..................................................47

Disposal Train for Used Oil .................................................................................49

Used Oil Recycling Operations ...........................................................................62

iv
FOREWORD

There are nearly three quarters of a million used oil generators in the United

States today. Of this amount a large percentage are small businesses either in the

vehicle maintenance sector or in other types of small quantity generators of

industrial oils. This paper will address current used oil market opportunities to

both foster increased commerce and protect the environment.

A spirit of cooperation needs to be renewed and focused toward the conservation

of our precious petroleum supplies. Used oil is a precious resource that if used

improperly will become a hazardous waste. Individuals create this problem and

are also part of the solution. It is our responsibility to redirect this wasted

resource by acknowledging that all Americans participate in saving our land and

preserving its resources for future generations.

The two-fold purpose of this paper is to explore the current market for which

used oil is handled and to provide to both public officials and consumers some

idea on how to best manage this valuable resource and protect it from becoming

a hazardous waste. Used oil recycling can serve as a model of how important it is

to promote pollution prevention. This paper will evaluate a number of potential

best management practices based on the specific needs of used oil generators.

This paper does not advocate one technology over another since economic forces

dictate different decisions at the local level. Since used oil markets differ

depending upon specific settings, an individual generator should find out how to

best manage his or her used oil.

It can not be over-emphasized that numerous other automotive and industrial

chemicals should not be mixed with used oil. Also, good housekeeping

techniques, coupled with finding disposal/recycling options for the

contaminants that are mixed with used oil, are critical to ensure this material is

fully source separated.

The Author

V
ABOUT THE AUTHOR

Mr. Robert Arner, Solid Waste Program Manager for the Northern Virginia

Planning District Commission, has hands-on experience in all aspects of used oil

recycling, having been one of the first National Recycling Coalition (NRC)

members; national environmental organizer (Earth Day’ 80; state representative,

Washington, DC); assisted in founding the Association of Government Oil

Recycling Officials and the National Oil Recyclers Association; used oil collector;

recycling plant manager, and a concerned citizen.

For over fifteen years, Mr. Arner has dealt with numerous used oil technical,

policy and public education (technology transfer) issues working closely with the

Association of Petroleum Re-refiners and the American Petroleum Institute.

Recruiting such spokespeople as Peter Jennings, Jack Anderson and Wes Unseld,

Rob Arner has developed numerous innovative avenues of public education. For

the U.S. Environmental Protection Agency, Mr. Arner has co-authored numerous

community action newsletters, brochures, and a “how to manual” for community

action. Mr. Arner has worked with numerous state motor vehicle agencies to

inform consumers on how to recycle their used oil.

Mr. Arner has experience in various used oil recycling technologies, including

experience as a builder and plant manager of a used oil recycling facility and

visiting numerous other reprocessing and re-refining operations. As such, he

supervised processing and final testing of used oil, environmental pollution

controls, permit applications and supervised, procured and installed plant

equipment. Also, Mr. Arner has worked as a consultant for other used oil

recycling firms.

Besides testifying before the USEPA in 1979 and Congress in 1981 on the Used

Oil Recycling Act of 1980, representing state government (National Association

of Oil Recovery Coordinators), Mr. Arner has assisted in developing used oil

legislation for Congressman Torres(CA), and the states of California, Florida,

and Virginia.

Mr. Arner has written and spoken extensively on this topic throughout the

United States and has a B.S. from the University of Maryland.

vi
USED OIL DISPOSITION IN THE UNITED STATES - 1988

(Millions of Gallons)

Source: Lubrizol
USED OIL RECYCLING MARKETS AND BEST MANAGEMENT

PRACTICES IN THE UNITED STATES

1.0 INTRODUCTI0ON TO THE USED OIL MARKET

IN THE UNITED STATES

Americans are awakening to the realization that innovative solutions will be

required for our modern-day environmental problems. The improper

utilization and disposal of used oil is one critical environmental problem

which offers valuable lessons for regulatory reform.

The need for sound scientific data that is objectively presented to the public is

essential. Additionally, proper design and quality control are important in

preventing adverse health and environmental damage that can be caused by

used oil. Used oil as a potential “non-point source” pollutant requires

economic incentives to be properly managed and controlled. Simply

reflecting on the fact that one gallon of used oil is enough to pollute one

million gallons of water can be a somber realization.

The used oil recycling market offers a case study into the complexity of

defining and regulating one area of recycling. Before we can understand the

secondary oil market (represented by recycled oil), we must understand the

primary one. Roughly, 230 billion gallons of crude virgin oil are estimated to

be processed in the United States each year. Of this amount, only l/2 to l/4 of

one percent becomes used oil. With the advancements in modern petrochemical technology, refiners can produce many different products depending

upon what the market demands. Oil refiners currently refine seven percent

of virgin oil into fuel and one percent into lubricants and coolants.

The often repeated statement that “it takes 42 gallons of crude oil to yield the

same 2 and l/2 quarts of lubricating oil provided by re-refining one gallon of

used oil,” is misleading. This is because other useful end products are made

when crude oil is refined. Sophisticated refining technology can transform

crude oil to cater to practically any market demand (see Table A).

Each year, the United States generates approximately 1.351 billion gallons of

used oil from roughly 2.4 billion gallons of new refined lubricating oil. Only

57 percent of this used oil is accounted for by recycling (Federal Register,

9/23/91, pg. 48003). People who change their own oil, the so called do-ityourselfers (DIYs), are a major source of improper disposal of used oil. It is

1
estimated that between 193 to 400 million gallons of used oil are released into

the environment each year in this manner.1

Few other recycling markets in this country have gone through such vast

fluctuations as used oil. The roller coaster fluctuations experienced in

petroleum prices coupled with ever-changing environmental regulations

has, in many cases, only added insult to injury. Moreover, a new sensitivity

to how governmental policy acts upon free markets is emerging. Heavyhanded regulations, even when well-intentioned, can cause an increase in

improper disposal, and alter the collection infrastructure. Increased handling

cost in these heavily regulated states depresses collection efforts for very small

quantity generators and DIY oil changers. The stigma of used oil being

potentially classified as a hazardous waste has destroyed tens of thousands of

collection centers overnight as a result of increased insurance and liability

costs.

Used oil has been identified as a constituent of concern at less than half of the

63 NPL Superfund sites managing used oil and other wastes. However, this

black liquid has served as an ideal mask to hide numerous highly hazardous

chemicals that have caused many serious environmental problems (these

may include PCBs, and chlorinated solvents). Used oil does not only

originate from the crankcase drainings of cars, trucks, motorcycles, buses,

lawn mowers, boats, and planes, but from all types of machinery and

industrial applications as well.

It is important to educate those in the environmental movement on how to

deal with the complexities of such a ubiquitous waste. Sensationalizing the

problem and attacking major oil corporations only encourages greater

polarization in an era where private and public cooperation is critical to

protecting our environment.

1

 Mercer Management Revised 1992-EPA Used Oil Data, telephone conversation with Kevin

Dietly, September 1992.

2
Table A

PETROLEUM TREE

Source: GSI Used Oil Seminar, 9/3/91

3
1.1 Regulatory History and Definition of Used Oil

One of the greatest challenges in the waste industry has been to define

recycling and waste reduction. Since used oil contains an array of petroleum

by-products, there has been little agreement on the definition of this material.

The chemical compositions range from industrial oils to automotive

crankcase drainings.

On September 23,1991, the EPA published a Supplemental Notice of Proposed

Rulemaking for the identification and listing of used oil (56 PR 48000). Three

options were presented for identifying used oil as a hazardous waste.

Roughly one thousand cornmentors provided the EPA with information

similar to the Agency’s 1985 proposed hazardous listing of used oil.

The vast majority of commentors again supported Option Three, not to list

used oil as a hazardous waste, but to rely on management standards instead.

Many of these cornmentors suggested that regulating used oil as a hazardous

waste would have a negative effect on the entire used oil recycling system,

especially voluntary DIY programs. Commentors stressed the need to

encourage recycling through education, proper collection, and strong

management standards.

In May of 1992, the EPA determined that hazardous listing of used oil

destined for disposal was unnecessary. The EPA also determined that listing

all used oils as hazardous unfairly subjects them to stringent Subtitle C

regulations. On August 15, 1992, the EPA promulgated recycled used oil final

management standards for controlling the potential risks from the “no

hazardous waste” listing. The EPA specifically noted that its decision not to

Iist recycled used oil as a hazardous waste was based solely upon its

evaluation of technical listing criteria contained in 40 CPR 261.11(a)(3).

The EPA’s August 1992 decision also provides a regulatory definition for

“used oil” at 40 CPR 260.10 as follows (p. 45).

Used oil means any oil that has been refined from crude oil, or any

synthetic oil, that has been used and as a result of such use is

contaminated by physical or chemical impurities.

This regulatory definition covers the majority of used oil which was a result

of lubricants, coolants (non contact heat transfer fluids), emulsions, and other

oils contaminated through use. Specific types of used oils, however, are not

identified in the definition, as was proposed in 1985.

4
1.2 Definition of “Recycled Oil”

Used oil, however, is considered to be a solid waste. As such, Congress and

then President Carter interpreted recycling and signed into public law a

definition of “recycled oil.” The Used Oil Recycling Act of 1980 (PL 96-43)

makes the statutory distinction in §3. §1004 of the Solid Waste Disposal Act,

amending it with a new paragraph (37),

“The term ‘recycled oil’ means any used oil which is reused,

following its original use, for any purposes (including the purpose

for which oil was originally used). Such terms include oil which is

re-refined, reclaimed, burned, or reprocessed.”

1.3 Used Oil Recycling Rate

The EPA calculates used oil recycling by updating the Franklin Associates

methodology to estimate the parameters of the used oil industry with modest

changes by the Temple, Barker and Sloan (TBS) 1988 Generation and Flow

Report. The rate is calculated from the used oil generation formula provided

in the Franklin Associates’ 1983 Used Oil Analysis.
Table B

SUMMARY OF NORA FUEL SURVEY

Printing Date, Feb. 21, 1992

Respondents, 48

Total Gals./Year - 263,480,000

Total On-8pec.* - 239,940,000 (91%)

Total Off-8pac.* - 23,540,000 (9%) 

Lead Level Incoming - 42.95 ppm average

Lead level Outgoing - 34.35 ppm average

USED OIL

TYPE CUSTOMER

Industrial Furnaces*

Industrial Boilers *

Institutiona l

Residential

Blenders - Off Site

Other Commercial &

Industrial Burners *

Fuel Total -

Non-Fuel Total -

Grand Total -

END USE

GALLONS/YEAR PER CENT

111,060,000 42.1

66,580,000 25.3

350,000 0.1

- 0 - 0.0

23,250,000 8.8

4,920,000

206,480,000

57,320,000

263,480,000

* Meeting the requirements of 40 CFR Part 260 - 266.

6

1.9

78.2

21. 8

100.0
1.4 The Lead Question

Most used oil is on specification (“on spec,” or meeting standards) under the

current definition of 100 parts per million of lead because of the lead phase

out in gasoline. According to the data the EPA collected to characterize used

oil constituents and estimate the levels of such constituents in used oil, most

used oil does not exceed the 100 parts per million (ppm) limit on lead, a

specification limit for lead in used oil fuel that could be burned in nonindustrial boilers and furnaces. There are, however, isolated exceptions such

as aviation and some marine used oil where lead runs above 100 parts ppm.

1988 was a transition year because of the phase out of lead in gasoline. In a

recent survey by the National Oil Recyclers Association, it was found that lead

concentrations were less than one half of the 100 ppm “on-spec” standard (see

Table B).

Today a vast majority of used oil is now “on-spec” (less then 100 ppm) or very

close to it. Specific accounting has been conducted of how much used oil is

“on-spec,” although blending of used oil with new refined oil so that it meets

“on-spec” requirements is a common practice.

Several national environmental organizations have made claims that

burning used oil is the number one source of lead emissions in the air. A

Congressional Reference Service memo from May 18,1992 by Linda Schierow

to the Senate Energy and Natural Resources Committee documents the EPA’s

most current findings that of the 1989 U.S. emissions of lead to air, only 200

(tons/year (t/y)) were from used oil out of 7,200 (t/y) total, or less than 3%.

1.5 DIY-Generated Used Oil

One of the most significant types of used oil disposition comes from the very

small generator or the DIY. The DIY is an individual who removes used oil

from a motor vehicle, utility engine or farm equipment owned and operated

by such an individual for personal use. Many communities have enacted

curbside collection of used oil or informed the public where to drop used oil

off for recycling. Some states have required retailers to either post signs

informing the public where to drop used oil off for recycling or have required

the business selling used oil to collect DIY-generated used oil. Such states as

Texas (2 cents a quart) and South Carolina (8 cents a gallon) tax retailers that

sell oil and divert the funds into a grant program for local DIY programs.

Other states such as New York and Massachusetts require service stations

who sell oil to accept DIY used oil. There are roughly 50 million Americans -

from blue collar workers to affluent car buffs - who change oil from their own

7
vehicles 2. Often, however, other types of very small quantity generators (e.g.,

farmers, and very small businesses) are not in this category, making a precise

accounting of this activity difficult.

The Resource Conservation and Recovery Act of 1976 (RCRA) does not

provide any authority to EPA to regulate waste generated by individuals or

households (e.g., people who change their used oil and filters). The EPA has,

however, developed numerous educational publications addressing this issue

and is striving to improve this oil collection system.

The EPA cites that 193 million gallons of used oil, or roughly twenty percent

of the total, are not recycled from the DIY sector. The newly promulgated rule

covering recycled used oil may encourage DIY oil collection by service

stations. In the future, EPA may develop incentives to stimulate additional

collection of DIY-generated used oil.

Listing used oil as a hazardous waste would have discouraged collection of

DIY-generated used oil for recycling because many facilities would have had

to pay to ship DIY-generated used oil to the recycler as a hazardous waste.

Liability concerns may have resulted in many collection stations

discontinuing this voluntary service to the public.

In 1961, service stations accounted for about 70% of all sales of lubricating oil

for passenger cars. Today, retail outlets command this market, with DIYs

purchasing roughly 60% of all lubricating oil sold. The present economic

slump in this county also has increased the DIY population. In effect, the

mass consumer market has grown while the number of collection stations for

used oil until recently has decreased.

Numerous major oil companies and retailers have responded to the problem

by sponsoring DIY collection programs. Certain environmental groups have

attacked these efforts, claiming this constitutes false environmental

advertising since most of this used oil is used as a fuel and therefore this is

not true recycling.

2

Standard Scenarios for Estimating Exposures to Chemical Substances During Use of Consumer

Products, Volume II, Versar, Inc., prepared for USEPA Office of Toxic Substances, 9/86, p. A-9.

8
USED OIL MANAGEMENT SYSTEM OVERVIEW

Source: Mercer Management, Kevin Dietly, 9/92
2.0 THE U.S. USED OIL UNIVERSE AND INDUSTRY

The oil business, you know, is liable to sudden and violent fluctuations.

- John D. Rockefeller

The used oil recycling industry includes generators and users of spent

automotive lubricants, industrial oils, hydraulic oils, metalworking oils and

industrial process oils, and other miscellaneous oils. The used oil recycling

industry has no formal structures, per se. The used oil fuel market is closely

tied to the virgin petroleum fuel market. Re-refiners (firms that make used

oil into lubricants) are also tied to the virgin lubricant market. The present

used oil industry ranges from small automotive garage operators who will

provide auto maintenance services, to one of the nation’s largest refineries

which processes crude oil.

Many used oil recyclers are forced to sell used oil fuel 15 to 20 percent below

virgin fuel oil prices. The used oil recycling market is to a great extent

determined by virgin fuel oil price. Currently, if the price of virgin fuel oil

goes above 53 cents per gallon for fuel oil, the generators get paid for their

used oil. If this price stays at 53 cents per gallon, the used oil is picked up for

free. lf the price of fuel oil drops below 53 cents per gallon for fuel oil, then

the generator is charged for pick-up. It costs about 5 cents per gallon to collect

used oil and approximately 20 cents per gallon to m-process it (see Table C).

The used oil industry is unique and very complex. It includes a wide range of

professions, recycling methods and operations. Some used oil is used directly

from collection trucks to be blended at large fuel companies, provided the oil

contains little water.

The recycled used oil market operates on both a regional and local level. It is

also a local matter catering to the specific needs of the individual used oil

generators. The northeast region of the U.S. is still marketing heating oil,

whereas the rest of the nation is using natural gas.

About half of the oil sold is returned to the recycling system as lubricants.

Some of the oil is lost during equipment/engine operation, and some is lost

due to mismanagement by DlYs and used oil industry participants.

2.1 The Used Oil Generator

There are approximately 700,000 facilities in the U.S. that qualify as used oil

generators. Used oil generators encompass a wide range of industrial sectors.

10
EFFECT OF VIRGIN FUEL OIL PRICE FLUCTUATIONS ON

PRICE OF USED OIL FUEL

Source: Eastern Oil Company
A large portion of these generators are small businesses, although there are

several distinct types of used oil generators, such as the DIY oil changers,

commercial oil changers (auto repair shops, quick lubes, auto dealerships),

industrial generators and governments (federal, state and local). There are

businesses or sectors which produce used oil through commercial and

industrial operations, or collect used oil from various types of activities such

a s : service stations, repair shops, new and used auto dealers, fleets, nonservice retailers, air/marine/railroad operations, and public collection

centers.

The EPA requires generators to: store used oil in aboveground tanks and

containers that are in good condition; label storage tanks; clean up any used

oil spills or leaks into the environment; and use a transporter with an EPA ID

number when the used oil is transported off site for recycling.

Service station dealers (30,000) who accept DIY used oil and who do not mix

used oil and other hazardous waste, and who comply with the new EPA

management standards in the U.S., are not liable for the third-party response

costs or damages resulting from subsequent management of oil (CERCLA

§114 (c) exemption). This is a significant development in attracting more

service stations to collect used oil from the DIY sector.

2.2 DIY Used Oil Collection Centers

The EPA defines used oil collection centers in §279.1 in the new management

standards. DIY Used Oil Collection Centers are defined as:

Any site or facility registered/licensed/permitted/recognized by a

state/county/municipal government to collect used oil from the

regulated generators prior to pickup of used oil transporter with an

EPA identification number for off site recycling.

A used oil collection center accepting only DIY oil must comply with the

generator standards of Part 279, C.

For additional information or to order a copy of the FederaI Register notice,

contact the RCRA Hotline, Monday through Friday, 8:30 a.m. to 7:30 p.m. EST.

The national, toll-free number is (800) 424-9346; TDD (800) 553-7672 (hearing

impaired). In Washington, DC, the number is (703) 920-9810; TDD (703) 486-

3323. Copies of documents applicable to used oil may be obtained by writing:

RCRA Information Center (RX), U.S. Environmental Protection Agency,

Office of Solid Waste (OS-305),401 M Street, SW, Washington, DC, 20460.

12
2.3 Used Oil Collectors/Transporters

There are currently 400 transporters and collectors that have an EPA

identification number. This sector of the industry must: maintain storage

tanks and containers in good condition, appropriately label the oil as “used”;

store used oil in areas with oil-impervious flooring and secondary structures

(such as berms or retaining ditches); clean up any used oil spills or leaks

which are released to the environment; and track quantities of both incoming

and outgoing used oil. Any transportation processing (treating) used oil to

produce specification fuel is considered used oil processing/re-refining and

must comply with those requirements. A critical factor in the evaluation of a

collector is whether or not they test the used oil for contaminants (e.g.,

halogens), and manage used oil containing hazardous waste (e.g., chlorinated

solvents) as a hazardous waste.

Over the last decade, used oil collectors have become more environmentally

sophisticated. Today, many collectors separate various types of used oil since

this reduces processing costs and the separated oil is more economically

attractive to the market. A large portion of the industry also collects spent dry

cleaning chemicals, anti-freeze, parts-cleaning solvents, degreasing fluids, and

used oil filters. Since stringent tank requirements have taken effect, many

transporters have to make more runs for collecting used oil and other

hazardous waste at separate times or invest in tanks or trucks that are

partitioned (i.e., one to hold used oil and the other to hold hazardous waste).

The used oil industry is comprised of a number of collectors who may not

process at all but merely sell to various elements of the fuel markets, and they

must comply with the used oil standards for marketers of used oil fuel.

According to several industry sources, the small collectors, sometimes

referred to as “mom and pop” operations, collect roughly 30 percent of the

total U.S. volume of used oil. It has been speculated that a portion of these

small transporters are causing‘ some environmental problems. Some

collectors/processors pick up untested and untreated used oil and sell it

unprocessed.

2.4 Waste Minimization

Another area of change is caused by the new waste minimization rules cited

by various industry experts, which creates either an incentive to burn used oil

or reuse the lubricants on site. Firms of all sizes have the incentive to

decrease the volume of the waste leaving their facility by recycling them on

site in units approved by EPA for burning of used oil and hazardous waste for

energy recovery.

13
There are numerous waste reduction methods that either reuse existing oils

or employ synthetic oils which extend the oil’s life and use. These techniques

both result in extending the use of existing oils and lessening the intervals at

which new oils must be added.

2.5 Road Oiling

Used oil used for road oiling has had a history of major environmental

problems (e.g., Times Beach). Although not commonly practiced, 24 million

gallons of used oil are still placed on roads every year to suppress dust in the

United States. There was overwhelming support from the most recent round

of used oil comments for a ban on the use of used oil for road application and

dust suppression. In September 1992, the EPA decided to prohibit the use of

used oil as a dust suppressant under part §279.82 However, certain states can

petition EPA to exempt their state from the national ban.

14

3.0 USED OIL RECYCLING TECHNOLOGIES

There are various used oil recycling technologies in existence. The following

is an overview of used oil recycling technologies essential in the end

marketing of this energy resource and recyclable waste.

3.1 Direct Burning

Used oil utilized directly as a fuel is commonly put to use in oil-fired space

heaters. The direct burning of used oil in the United States occurs both on

site in space heaters and off site in industrial and non-industrial boilers and

furnaces. On site burning of used oil is acceptable provided that the used oil

burned is generated at the site or accepted from DIY. No other hazardous

waste may be burned in these space heaters. Specially designed burners (e.g.,

vented units or units with air pollution controls) are required to bum used

oil properly. Large industrial or commercial operations may choose to bum

the used oil they generate on site, depending upon the composition and

quantity of the used oil they generate in their own boilers or furnaces. The

burning of off-spec in non-industrial boilers is prohibited by the EPA.

Direct burning is a significant used oil market. There are 70,000 small used oil

heaters burning upwards of 120 million gallons of used oil a year; The extent

of additional on site burning of used oil from a total of 700,000 generators is

difficult to ascertain since every mode of transportation generates used oil.

Today, nearly all small used oil heaters are atomization units while a decade

ago three-quarters of these heaters were vaporization units. Industry sources

cite that waste minimization/pollution prevention measures have created

increased incentives to reduce waste leaving a facility. Small used oil heaters

are generally used by fleet service centers, service stations, automobile

dealerships, truck and bus service centers, auto body shops/garages, and small

metalworking shops.

Clean Burn, Inc., a used oil heater manufacturer, sells space heaters to forty to

fifty percent of the market, according to industry sources. Each small used oil

heater can burn an average of 1,750 gallons of used oil a year. These units sell

for approximately $4,500 each, including installation charges, and last about

seven years. A 250 gallon storage tank is used to store used oil fed into the

heater; cost per tank is $750. Small used oil heaters replace Number 2 fuel oil,

natural gas and electrical heating sources. Maintenance is required on these

heaters at every 1,000 gallons of used oil burned. This bi-annual service

requirement costs the owner about $200 to clean out the ash and heat

exchangers. Estimates that these pay for themselves in 2.5 years were based

on the cost of picking used oil up in states where used oil is listed as a

hazardous waste ($1.0-$1.25 per gallon).

16
DIRECT BURNING/ENERGY RECOVERY

Source: Clean Burn, Inc.
In 1983, Franklin Association Appendices indicated that used oil heaters

burned primarily automotive oils since they are usually located at

automotive generator sites. It was estimated that about 30,000 heaters were in

the U.S. with a typical rating of 250,000 BTUs/hr. Based on this rating a

typical unit would burn 1,140 gallons per year or 34.2 million gallons in 1983.

Nine companies manufacture space heaters, all less then 500,000 BTUs/hr.

Vaporization heaters are by far the most common type. The average life of

these heaters was 10 years. Sales of these companies ranged from $3,500 - $18

million dollars. Service stations and some automotive repair garages also

purchased these units.

Systems for firms that generate 2,000 - 10,000 gallons of used oil a year have a

nominal output of 450,000 BTUs/hr. Two units can heat 8,000 - 10,000 ft. sq.

The initial premium for the used oil heater over a virgin fuel heater is

comfortably recovered within two years from fuel savings.

The outlet for smaller used oil burning units is more heavily concentrated in

regions of the U.S. where it is colder, there are higher prices for alternative

fuels, and the cost for used oil collection is more expensive. Direct burning is

attractive when fuel prices and disposal prices increase.

It is important to note that these heaters should only burn separated used oil

that was generated on site or DIY accepted used oil. Burning solvents and

other contaminants can cause burner problems, not to mention the resulting

contamination resulting to the air basin and ash residual. Also, these units

require cleaning of the combustion chamber and heat exchangers every 1,000

gallons burned.

3.2 Reprocessors

Used oil destined for fuel is usually reprocessed in the United States. Various

treatment steps are involved in reprocessing including settling, filtration and

dehydration. Many reprocessors may do more than this physical treatment

either by using chemical treatment or centrifuge to remove sediments/solids,

water, and improve the used oil’s flash point. Reprocessors may even blend

the used oil with virgin oil to market various fuel oils. The technology

employed to reprocess ranges from simple filtering and settling to

sophisticated forms of distillation. Most reprocessors operate additional

environmental operations besides used oil recycling, since this is a marginal

enterprise.

Most of the reprocessing business is based on dehydration. There was a time

when the industry mixed all sorts of other material into the used oil, but

today most of the reprocessors prefer to accept “clean used oil” if they are not

RCRA permitted hazardous waste management facilities.

18
FUEL OIL REPROCESSING

Source: Eastern Oil
TYPICAL AUTOMOTIVE LUBRICATION SYSTEM
There are roughly 200 reprocessors in the United States. There are many

diverse types of reprocessing facilities and no one common recycling method.

Everything is catered to the local generator’s needs. What is available and

what is the finished product needs to be determined up front. The majority

of these used oil recyclers are National Oil Recyclers Association (NOW)

members. NORA represents most major used oil fuel processors, about 75 of

the 200 processors in the U.S. NORA represents the major capacity of the

used oil recycling industry. Information concerning the remaining 50 or so

processors is sketchy.

A 1991 survey of NORA was conducted to determine its members’ end

markets and customer base (see Table B on page 5). In general the fuel oil

market has not changed in the last ten years. In Florida a significant amount

of used oil is used in the phosphate industry. There has been an increase in

on-site burning of used oil in various factories, utilities and plants, which

take the fleet oil they generate and use it to lessen their operating costs.

Greenhouse operators are another generator that utilizes used oil as a

secondary fuel source. Paper Mills and steel mills also burn used oil. Cement

kilns are a minor recycled fuel end market because the companies that

operate them get more money to burn hazardous waste and other costly

liquids. Used oil, burned as a bunker fuel, represents less than 15% of the

overall used oil fuel market, and is only significant in geographical areas

where there are large shipping ports (i.e., CA, LA, WA, NJ, etc.).

Used oil prices fluctuate with the quality and quantity of the used oil. Price

does depend on the finished product. Reprocessors strive toward a quality

finished fuel product with only l/2% of water. Generators are usually

charged when their used oil contains a lot of water or sludge.

3.3 Used Oil Filters

This area of market analysis deals with two distinctly different sub-areas; one

is oil life extension by filtration technology (i.e., mobile oil refiners) while the

second section addresses used oil filter recycling.

There are many types of oil filters depending upon the used oil generated. In

the industrial sector there are fine and large barrier filters. Oil contamination

not only shortens the life of the machines using these lubricants but can cause

high maintenance costs. There are numerous forms of oil filters that extend

oil life by screening material such as sand, metal chips, metal oxides, water,

grinding compounds, acids, oxides and other undesirable solids and liquids,

and gases separated from the oil. Oil filters have numerous environmental

benefits primarily in the area of air pollution by lessening the wear of engines

resulting from less frequent oil filter changes.

21
The best fibrous matter filter now commercially available will

block passage of solid particles down to 3 μm (Godfrey, 1989). For a

description of them, refer to Needleman (1980) and Fitch and

Tessman (1975). As a comparison, Consumer Reports (1987) has

shown that some common, inexpensive automotive filters may

remove only 60% of the particles down to 20 μm. Depth filters,

consisting of clay beds or rolls of paper, are effective in removing

particles in the 1 μm range, but they are very limited in flow

capacity so that very large or many filters in parallel are required. 3

3.3.1 Mobile Oil Refiner Filtration Technology

Mobile oil refiners have been around for over thirty years. One industry

source stated that this technology had been perfected in the early 1980s. These

mobile oil refiners eliminate regular oil changes and claim to reduce

maintenance costs and capital expenses by extending the life of an engine.

The mobile oil refiner removes liquid and solid contaminants. A normal oil

filter becomes clogged with contaminants, allowing in some instances

unfiltered oil to circulate through the engine. A by-pass filter can make up

for this since it is more sophisticated and thorough in cleaning the oil,

although by-pass filters do not remove all the liquid contaminants such as

water, fuel, anti-freeze, and acids. Mobile oil refiners differ from by-pass

filters in using pressure to filter smaller particles and heat to remove fuel.

“Under engine pressure oil enters the refiner where the compaction

of the filtering medium filters out the smaller particles and some

liquids. It then enters the transfer chamber and moves in a thin film

into the evaporation chamber where the pressure brings the liquids

which. are vented out through their own pressure. Furthermore,

because the oil remains free of contaminant and can be used

indefinitely, it undergoes a further refining process resulting in a

“super slick” oil with increased film strength.4

TF Purifiner is the largest company selling mobile oil refiners. TF Purifiner

claims its mobile oil refiner cleans oil continuously and is the only

evaporation and oil filtration system that attaches to any internal combustion

engine or hydraulic system where oil passes through the long stand cotton

filter at a low flow rate. This removes contaminant particles down to one

micron in size and absorbs acids and sulfur. TF Purifiner states that this

refiner takes 1-2 hours to install and cleans the oil at a rate of 3-24 gallons per

hour (depending on the size of the mobile oil refiner). Most major

3Hegberg, Hallenbeck & Brenniman, “Used Oil in Illinois,” July 1991, p. 67-68.

4Ferrell, Gary, Purolater Products, by facsimile, September 1992.

22
manufacturers, such as General Motors, Ford, Mack Trucks and Caterpillar,

say that the installation and use of a non-factory accessories such as the TF

Purifiner does not void the manufacturer’s warranty.

Pricing of these filter units and replacement filters are based on the quart

capacity of the engine, and ranges from several hundred dollars per unit to

over a thousand dollars (240 quart units) with a ten year warranty. It is

important to evaluate whether these filters are cost-effective compared to

regular oil changes and if the oil does not degrade after numerous miles of

vehicle use.

3.3.2 Oil Filter Recycling

Every year unknown numbers of used oil filters are lost in the environment.

Over 400 million oil filters are used every year in the U.S., in cars, trucks,

buses and numerous other vehicles and industrial sources. Used oil filters

and their contents impact landfills and water sources when they are

improperly disposed of.

A study at the University of Northern Iowa estimated that over 6.2 million

oil filters were discarded annually in that state. This translates into 660,000

gallons of used oil improperly entering the environment each year in Iowa

alone. 5It is estimated that in Illinois, 17.5 million filters are generated each

year accounting for 878,000 gallons of used oil, or an additional 2% of the used

oil generated in Illinois. 6 Depending on the size of a used oil filter it can

contain on average of one-half quart (according to Purolator Products) to 10-12

ounces of oil (EPA estimates).

According to Purolator Products, in a drained filter only about 30% of the oil

drains from the oil filter if the anti-drainback valve functions as designed

(and if the filter has one). The drained filters will still contain over a third of

a quart of used oil. 7

The Environmental Protection Agency’s “Toxicity Characteristic” rule issued

in March 1990 makes it necessary for all generators, if their filters are to be

disposed of, to test them to assure that they are non hazardous unless they are

“completely” recycled. There is no statutory definition of a “recycled” used oil

filter. It is assumed that the definition filters are crushed or shredded and

taken to a scrap metal recycler, while the used oil is taken to an oil recycler.

5 Iowa Dept. of Natural Resources, "Summary of OiI Filter Recycling Demonstration Project.”

6

 Hegberg, HaIIenbeck & Brenniman, “Used OiI in Illinois,” July 1991, p. 67-68.

7

 FerriIl, Gary, Purolater Products, by facsimile, September 1992.

23
EPA has exempted all used oil filters from the TCLP requirement as long as

they do not contain terne plate steel. Almost all light duty filter

manufacturers, and the Filter Manufacturers Council member companies,

have committed to eliminating terne-plate steel from their product line by

the end of 1992. 8

There are three primary methods of proper used oil filter disposal/recycling:

1.

2.

3.

Draining the filter: a) remove it hot from the vehicle/engine; b) place it

in a drain pan gasket side down; c) puncture the “dome end” of the filter

with a punch or a sharp tool such as a screwdriver to defeat the antidrawback valve function, and d) allow it to drain for 12-24 hours because

merely draining the filter with an anti-drainback valve will not remove

more than about 30% of the used oil in the filter housing, unless the antidrainback valve is not presented or defeated; 9

Draining the filter and crushing (mechanical compaction) the filter

through numerous types of filter crushers and either recycling or

disposing the filter biscuit or metal portion, and

Drain, disassemble (e.g., shred the filter) and send it to a scrap metal

recycler.

Several states have taken active positions on used oil filter disposal. Rhode

Island accepts used oil filters at several of its drop-off centers (called igloos),

and used oil and used oil filters that are not destined for recycling are

regulated as hazardous waste. In addition, Rhode Island mandates that used

oil filters may not be disposed of by discarding them into the trash. The State

of Texas has a law banning used oil filters from landfills as of 1994 (under

Senate Bill 1340).

24
RE-REFINING FOR USE AS LUBRICANT BASE STOCK
3.4 Re-refining Making Used Oil Into a Lubricant Again

Re-refining, once one of the most significant areas of used oil recycling, is

making a comeback. In the last 30 years this technology has had significant set

backs with acid clay processing. Both improved quality controls and

technological advancements in vacuum distillation/hydra-treating has

allowed this industry to compete with virgin lubricating oil market. Rerefiners transform used oil back into a lubricating basestock, exact in quality

to virgin lubricant basestock. The present re-refining technology is based on

vacuum distillation followed by hydro-treatment. These modern

advancements provide the same high quality control, protection and

performance as virgin (non-recycled) basestocks.

There are only four x-refiners in the U.S. that are recycling used oil into high

performance automotive basestock. It is difficult to determine how much

used oil is m-refined. Some estimate that 50-100 million gallons of used oil

goes into the x-refining industry, although it is unknown how much is

made into a lubricant rather than a fuel because of low oil prices.

For every gallon of used oil that is x-refined, 65 percent is made into two

types of lube oils, 10-15 percent is light ends or fuels, 10 percent is waste water

and 10 percent is bottoms or asphalt flux. The lube oil produced is sold to lube

oil blenders and compounders who provide additives and then package the

product for industrial and retail marketing. Some of the fuel is burned to

help run the facility while some of it may be sold to fuel companies. The

asphalt flux may be sold to roofing manufacturers or steel mills as a fuel.

Finally, the water is treated and discharged.

Re-refiners are more individualistic than reprocessors. Roughly 100 million

gallons are produced by the m-refiners while 700 million gallons of used oil is

burned in the fuel market. Evergreen Oil produces 15 million gallons a year

of x-refined, or lubricating oil ($1 dollar per gallon of annual capacity). Safety

Kleen just built a 70 million gallon-a-year re-refinery (at a cost of $70 million

dollars to convert an old Chicago oil plant).

The remaining two re-refiners are DeMenno/Kerdoon and Ecoguard. It is

unknown however the amount of lubricants that they presently re-refine

into hydraulic fluids and engine lubricating oils.

First Recovery is a part of Ecoguard, both of which are subsidiaries of

Valvoline, Inc. First Recovery maintains a state-of-the-art used oil recycling

program with a network of 1000 used oil collection customers and retailers in

22 states collecting over 15 million gallons in 1991. Valvoline is aiming to

collect almost 100 million gallons of used oil over the next four years.

26
Safety Kleen uses all petroleum-based oils for their East Chicago Re-refinery.

They also have another re-refinery in Canada called Breslube. Collection

comes from all over the United States.

Safety Kleen, which collects 70 million gallons of used oil a year in the United

States, does extensive testing to make sure there are no PCBs, chlorinated

solvents and/or other contaminants in the used oil. The used oil must have

a flash point over 100 degrees F to be accepted.

Transportation costs, regulatory compliance, paperwork, testing costs and end

product profitability are the critical elements determining whether Safety

Kleen will pay or charge its customers. Purchasing agents expect a discount

for re-refined oil.

Certain members of the re-refining industry have lobbied to have used oil

listed as a hazardous waste. By limiting the amount of used oil burned, the

industry would be better able to compete in the marketplace. Another

important factor in the growth of this industry is government procurement

of re-refined lubricating oil.

The attitudes of motor vehicle manufacturers regarding the viability of rerefined oil is the most critical factor affecting its marketability and re-refining

operations. API, ASTM, SAE and the Motor Vehicles Manufacturers

Association are close to finalizing a certification and measurement program

evaluating m-refined lube stocks.

3.4.2 Re-Refined Consumer Products and Brand Names

Past problems with m-refined lubricants created the myth that re-refined oils

are inferior to virgin oils. Presently; re-refined oils must meet the same

stringent standards set by the American Petroleum Institute that virgin oil

products do.

In the past some re-refined oils have exhibited inferior performance

characteristics compared to virgin oils. Presently if the re-refined oils has the

American Petroleum Institute’s SC/CD quality rating (API “donut” symbol) it

establishes that the oil is of the same quality as virgin oil and meets or exceeds

all vehicle warranty requirements for automobile manufacturers.

Various independent lubricant companies take advantage of re-refined

basestocks and hydraulic fluids. Some are sold to repackagers/distributors

where they are combined with an additive package and sold as a highperformance premium quality lubricant. There are numerous rumors that

several major oil companies also use re-refined basestocks.

27
There are various brand names of re-refined lubricants sold in the U.S. For

example, “America’s Choice” is sold in Wal-Marts all over the U.S. and is a

Safety Kleen product. Ecoguard, a subsidiary of Valvoline, is re-refining

hydraulic fluids and is exploring the market for their engine lubricating oils,

in addition to examining the future availability of producing 10W-30, 10W-40

and SAE 30 in bottles and packages using recycled materials.

Lyondell Petrochemical Company has introduced Enviroil re-refined motor

oil, the first premium recycled motor oil to be marketed in the United States

under the brand name of a major petroleum refining company. Enviroil is a

premium 10W-30 motor oil produced with high quality re-refined basestocks

and additives providing a performance equal to virgin oil-based lubricants.

Lyondell purchases its re-refined basestocks from Safety Kleen and Evergreen.

Enviroil is formulated by Lyondell, a Houston-based refined products and

petrochemical manufacturer and a top supplier of a wide variety of engine

oils and lubricants. Lyondell certifies that Enviroil fully meets or exceeds the

warranty requirements of automobile and light truck engines. Enviroil lOW30 meets the performance standards of the Society of Automotive Engineers

(SAE), the American Society for Testing and Materials (ASTM) and American

Petroleum Institute (API), and is rated SG/CD, Energy Conserving II, the

highest level awarded for gasoline engines.

Lyondell is the licensee of the ARCO lubricants trademark. Additionally,

Lyondell has introduced a heavy-duty fleet service premium re-refined motor

oil, Enviroil-T- 15W-40 (API 4/CD-II/SG). A line of premium anti-wear

hydraulic oils are also available under the Enviroil trademark. Re-refined

lubricants and virgin oil-based lubricants are produced using similar refining

technologies. They differ in that virgin oil is processed from crude oil while

m-refined oil is processed from carefully selected used oils. Laboratory and

field studies of re-refined oil by the National Bureau of Standards concluded

that high quality refined oils can perform as well as virgin oil-based

lubricants.

Two years ago Morrison Oil Company introduced SOAR (Save Our American

Resources), a full line of re-refined lubricants (15W-40, multigrade crankcase

lubricant, 10W-30 multigrade viscosity motor oil, and a hydraulic oil antiwear general purpose hydraulic oil). Recently Morrison Oil has switched its

market strategy to the government and commercial buyers from the retail

market. In August 1991, the city of Olympia, Washington used re-refined

motor oil and re-refined hydraulic fuel in its vehicle fleets.

28
 SLIP STREAMING

Source: Lyondell Petrochemical Company
3.4.2 EPA Guidelines for Purchasing Re-refined Lubricating Oils

On June 30, 1988, the EPA issued procurement guidelines for x-refined oil.

All federal agencies and all state and local government agencies and

contractors that use federal funds to purchase such products are required to

implement a preference program favoring the purchase of re-refined oil to

the maximum extent practicable. The EPA guidelines recommend that

engine lubricating oils, hydraulic fluids, and gear oils contain a minimum of

25 percent re-refined oil in the basestock.

The U.S. Post Office has used rerefined oil in over 14,000 vehicles with no

reported problems. After numerous vehicle miles, chemical analysis of two

samples of re-refined oil taken from Post Office vehicles showed that using

re-refined oil was no different than using virgin lubricants.

As part of the pilot program, five of the 73 postal divisions bought re-refined

motor oil: Buffalo, New York; Detroit and Grand Rapids, Michigan;

Indianapolis, Indiana; and Minneapolis, Minnesota. A total of 14,511 vehicles

were supplied in the pilot program. The contractor was Safety Kleen.

Using re-refined oil resulted in a substantial savings. Total oil purchases for

fiscal year 1991 equaled $1.637 million, averaging 67 cents per quart. In

contrast, the cost of re-refined oil for the five divisions was $28,000, with an

average cost per quart of 62 cents-a savings of 5 cents per quart.

Various states (including Colorado, Connecticut, New York, New Jersey,

Nebraska, Michigan, Illinois, Missouri, Kentucky and Vermont) are also

purchasing m-refined oil. In 1991 Kentucky purchased 50,000 quarts of engine

lubricating re-refined oil for $41,435; 4,000 gallons of hydraulic fluids for

$10,748; and 1,000 pounds of general-purpose gear oils for $600. Vermont

estimated that it has spent $22,148 to date on those three categories. Some 10

states, such as Illinois, have re-refined oil use provisions that instruct state

motor vehicle operators to use re-refined oil whenever economically feasible

(Public Act 87-0485). Florida has formulated an economic development

program for the collection and recycling of oil and oil filters, antifreeze and

automotive batteries, and procurement of re-refined motor oil through their

Department of Management Services.

3.5 Slipstream Used Oil

Lyondell Refinery is the first major U.S. refinery to produce gasoline and

other petroleum products from used oil on a commercial basis. Lyondell

Lubricants, the ninth largest refinery in the United States, has begun

 Meade, Kathleen, Recycling Times, September 1992, p. 6. 10

30
SELECT REFINERY FEEDSTOCK USED OIL

MANAGEMENT SYSTEM
slipstreaming used oil into its 265,000 barrels-a-day capacity refinery. Roughly

420,000 gallons of used oil a month are accepted into this Houston Refinery

which is known as the Select Refinery Feedstock (SRF) program. The SRF

process converts the used oil into gasoline, heating oil, and petrochemical

feedstocks.

Lyondell slipstreams used lubricating oil in a very small amount (500 barrels

of 6,300-8,400 gallons a day or 1% of used oil as feed) to a delayed coking unit.

No special pretreatment is required. This coker thermally breaks down

(cracks) the hydrocarbon molecules into gasoline, naphtha, heating oil, and

petroleum coke (a solid hydrocarbon similar to coal). The coke is sold as a

fuel. Small amounts of metal contaminants in the used oil are captured in

the coke, although company tests have not found a significant increase in

heavy metals caused by slipstreaming.

Lyondell has so far recycled 1.5 million gallons of used oil with the goal of

slipstreaming 30 million gallons of used lubricants per year. As a result of

used oil utilization as a feedstock, the plant’s consumption of crude oil will

proportionally decrease.

Lyondell is concentrating on purchasing used oil from large lubricant users

such as railroads, commercial transportation fleets and large industrial plants.

Lyondell is also working with some major used oil recyclers to collect other

sources of used automotive oils.

Lyondell Petrochemical Company is an integrated manufacturer of refined

petroleum and petrochemical products with manufacturing facilities in

Houston, Channelview and Pasadena, Texas, and corporate headquarters in

downtown Houston. Ranked 72nd in 1990 on the Fortune 500, Lyondell was

rated the nation’s most productive industrial company, according to Fortune

data, ranking both sales and profits per employee for 1989 and 1990.

32
4.0 ENVIRONMENTAL ECONOMICS OF USED OIL

This section explores both the cost of the various recycling technologies and

their environmental impacts. Environmental economics explores the

efficiency of competitive markets by identifying both the social and private

costs. Economics suggests ways of achieving efficient states while the

environmental perspective measures the cost and benefits of pollution

abatement even if nonpecuniary costs are factored into this equation (for

example, the beauty lost in a stream from a used oil slick).

Used oil enters the environment in various ways. It is important to identify

the cost of disposal versus recycling. Preventing clean up costs should be

factored in as an avoided cost. It has been estimated that 450 million gallons

of oil were leaked or lost in 1988. This represents approximately 33 percent of

all used oil available for recycling in that year in the United States. Leakage

may be the single largest source of used motor oil contamination of the

environment. Some of that oil evaporates, but most of it, is eventually

washed away by snow and rain and is added to rivers, lakes, and wastewater

treatment systems.

4.1 Water Contamination

Hazardous contaminants, which can be concentrated in used oil, may enter

surface water, ground water, and soil from leaking storage tanks, sewer

drains, spills, and impoundments, as well as from disposal or treatment in

landfills or lagoons. This oil can contain hazardous chemicals such as lead,

zinc, and arsenic, and is a contaminant of groundwater. Intentional dumping

and road oiling are other possible sources of contamination. The dumping of

oil into sewers may ultimately result in water contamination.

4.2 Air Emission

The disposal of used oil on land results in air emissions via evaporation of

organic compounds from draining, dumping, and landfilling and from

contamination of surface and ground waters by infiltration, migration, and

leaching of used oil contaminants following draining, dumping, and

landfilling. Hazardous constituents are released to the air by incineration or

burning of used oil (or blended fuel containing used oil) in nonpermitted

burners, utility and industrial boilers, kilns, and space heaters. Constituents

may also be released into the air by evaporation from land-based

management practices.

33
4.3 Soil Contamination

Used oil dumped on the soil can contaminate water due to the process of

infiltration, seepage, and percolation. Unlined municipal sanitary landfills

have a high degree of potential for the release of contaminants into soil and

with subsequent migration into water bodies.

4.4 Environmental Economic Factors of Recycling

It is important to recognize that no matter which recycling technology is

employed, how its specific operators maintain pollution controls and good

housekeeping practices is crucial. For example, a used oil reprocessor that has

all its wastes utilized at an asphalt plant may result in having better

environmental economics than a big re-refiner because the transportation

costs are much less. Evaluating the market for fuel over lubricants is another

consideration.

Numerous other important factors must also be examined, including the

quality of the used oil collected, the distance to a recycling facility, the amount

of investment for environmental controls, the market acceptance of end

products, the capital cost of the operation, and other important investment

questions, such as when a company turns a profit.

The process of handling used oils can result in adverse environmental

impacts in many ways; from direct dumping, spills as a result of mishandling

used oil, wastes from processing, releases into the air from burning without

emissions controls, using used oil as a dust suppressant (road oiling), and

improper discharge of oily wastewaters.

It is important to understand all the management issues and potential

adverse environment impacts of used oil recycling:

• collection (possibility of spills);

• transportation (possibility of spills);

• storage/processing (possibility of spills, air emissions, liquid and solid

wastes disposal); and

• end use (possibility of spills, air emissions, liquid and solid wastes

disposal).

There are arguments that on-site burning lessens the chance of spillage or

that long distance re-refining/slipstreaming is better since the oil isn’t being

burned, rather it is turned back into a new lubricant or petroleum product.

Many factors have to be weighed from a risk standpoint and geographic

location (rural versus urban).

34
No single generalization can be made on oil recycling techniques, for

example, that all burning is bad and all re-refining is good. Certain criteria

can better help in the evaluation of the environmental economics of used oil

recycling.

The following evaluation should be made:

• quality and quantities of the oil that is being generated;

• management practices of the used oil recycler;

• what pollution controls are in place and what is the rate of residual build-up;

• insurance coverage and environmental compliance record, and

• ability to identify and test for contaminants and the ability to deal with the

other materials such as solvents, and anti-freeze.

Later in this paper the section, “Evaluate Your Recycler,” offers a more

detailed checklist of assessing individual used oil recyclers.

4.5 An Innovative Graduate Thesis Evaluates Used Oil End Uses

In 1989, a team of graduate students specializing in Hazardous Materials

Management at Tufts University evaluated the potential health and

environmental risks associated with the re-use, recycling, and disposal

alternatives for used automotive oil 11

. Research into used oil management

practices produced a list of currently employed end uses which was narrowed

to 14 based on process similarities and potential releases. A qualitative

human health risk assessment identified 14 contaminants of concern,

evaluated the potential effects of each practice for each contaminant of

concern, and resulted in a ranking of end uses according to their relative

potential for posing risks. A qualitative environmental assessment was also

conducted. The report format was tailored to meet the needs of their client,

the Massachusetts Department of Environmental Protection.

A comprehensive risk rating table was developed to sum the risk ratings for

each end use from each exposure route. This rating was used to compare end

uses and rate relative risk potentials. Alternative end uses with the lowest

numbers represent the least potential for adverse effects on human health.

The relative ranking of end use alternatives is indicated below.

 The Environmental Challenge of the 1990s, Proceeding of the International Conference on 1 1

Pollution Prevention, USEPA/600/9-90/039, September 1990, p. 643-651.

35
Used Oil End Use Alternatives

Classification/Alternative Relative Risk Ranking

Re-refining and Reprocessing Technologies

• Vacuum Distillation with Hydrotreating 8

Burning with Controlled Emissions

• Incineration (hazardous waste and municipal)

• Asphalt Batching Plants and Cement Kilns

• Large Utility Boilers

1

4

3

Burning with Uncontrolled Emissions

• Space Heaters (vaporizing and atomizing)

• Small Residential Boilers

• Industrial Boilers (without emission controls)

12/14

13

6

Other End Uses

• Landfilling

• Landfarming

• Disposal in Storm and Sanitary Sewers

• Uncontrolled Dumping and Road Oiling

2

5

9

11

The group concentrated their risk analysis on contaminants of concern (COC)

in air, water, and soils. This understanding was particularly important for

evaluating the availability of COC for human exposure. This approach was

based strictly on human health risks. Several team members with ecological

and biological backgrounds convinced the group that environmental risk is a

critical factor in determinin g the overall risks of end uses, thereby protecting

public health, welfare, and the environment.

Implementation of three of the preferred end uses (hazardous waste

incineration, landfarming, and landfilling) was judged to be inapplicable in

Massachusetts due to regulatory restrictions, capacity limitations, and/or

public opposition. The feasibility of utility boilers, asphalt batching plants, and

municipal incinerators was further evaluated based on economic and

practical advantages and disadvantages of recycling used oil in these

respective capacities.

The group recommended that:

1) More efficient permitting processes be established to expedite the review of

utilizing asphalt plants and utility boilers.

36
2) Study the feasibility of using used oil as an auxiliary fuel in municipal

incinerators.

3) Institute a source reduction program to decrease the amount of used oil

entering the management system and upgrade the quality of the used oil

that does enter the management system.

4.6 Conclusions

It is important that in evaluating your options in recycling used oil that you

do not take the most economic or least costly path until you explore the full

ramifications of that choice. Many times generators have had their used oil

picked up by transporters who have undercut their competitors and then

improperly disposed of the oil. This opens up to the possibility of having

generators pay countless dollars as a Potentially Responsible Partly (PRP) in a

subsequent Superfund clean up. It is impossible to generalize that one

technology is better than another because used oil is regulated differently

depending on where it is being generated. However, one point remains

constant and that is the better the environmental controls and good

housekeeping practices, the less liable and better off the generator will be.

37
5.0 BEST MANAGEMENT PRACTICES

The history of used oil mismanagement practices at processing facilities has

resulted in numerous cases of environmental damage (25 Superfund sites on

the National Priority List) where used oil was the major constituent of

concern. Whether the cause of damage was from leaking tanks/containers,

spills, surface impoundments, or sludge waste piles, EPA has concluded that

used oil processing/re-refining facilities pose the greatest problem primarily

as a result of used oil mismanagement. Even though the generator may not

directly deal with these operations, he/she may be made liable (Potentially

Responsible Party (PRP)) if a collector takes the used oil to a future Superfund

site. Moreover, to lessen liability and prevent or prepare for any possible

accident, the generator, on a small scale, should observe some simple good

housekeeping procedures.

5.1 Good Housekeeping Practices

The proper handling, transferring, storing and transporting of used oil

requires specific safety procedures to ensure worker protection, accident

prevention, and protection against other harmful factors so as to reduce

liability insurance costs. These can range from providing a trash container

that is regularly serviced at a public used oil drop off, to establishing a solvent

recovery program to ensure used oil is not being mixed with hazardous

materials.

5.1.1 Handling

As in all recycling, the less that materials are handled, the better. Anytime

that used oil transfer occurs there is the possibility of a spill. Preventive

measures in handling are important to lessen spills and insure human error

is minimized. Experienced oil recyclers have very low instances of spillage.

51.2 Separating Different Types of Used Oils

It is critical that contaminants be kept out of used oil; oils should be separated

by their different types, such as metalworking oils from crankcase drainings

and from CFC used oils. The next section is a generic specification for

automotive used oil that is to be reprocessed as a fuel.

38
Used Oil Specifications*

These materials are ACCEPTABLE:

Automotive Industry

Motor Oil, Automatic Transmission Oil, Power Steering Fluid,

Diesel Fuel, Gear Oil, Kerosene, Mineral Spirits or Varsol

Aviation Industry

Turbine Engine Oil, Jet Fuel

General Industry

Hydraulic Oil, Gear Oil, Fuel Oil (No. 2,4,6)

These materials are CONDITIONALLY ACCEPTABLE:

A sample of these wastes must first be submitted for approval. These

products may be subject to an additional processing charge.

Oily Waste Water, Slurry or Emulsion, Synthetic Heat Transfer Oil,

Synthetic Hydraulic Oil, Higher ‘Sediment Oils Derived from Tank

Cleaner, Coal Tar and Asphalt-Based Products, Animal or Vegetable

Oils

These materials are NOT ACCEPTABLE (if the flash point is less then 140

degrees F and Total Organic Halogens is greater than 1000 ppm):

Chlorinated Solvents

Metalworking Fluids, Degreasing Solvents, Dry Cleaning Solvents,

Freon-Contaminated Refrigeration Oils

Flammable Liquids

Gasoline, Naphtha, Paint Thinner, Fiberglass Resin

Other

Transformer Oil, Ammonia-Contaminated Refrigeration Oil, Brake

Fluid, Bromine Contaminated Refrigeration Oil, Engine Coolant (antifreeze)

It is important to see if there are some disposal/recycling options for materials

not accepted since in many cases these may become mixed with used oil. In

addition, depending on what specific used oil is generated, segregating it

separately may open some waste minimization recycling opportunities (e.g.,

metalworking oils).

*Eastern Oil Company, Used Oil Specifications, January 30, 1992.

39
5.2 Evaluating Your Used Oil Recycler - A Checklist

5.2.1 Introduction

This checklist is intended to help one decide whether or not a used oil

recycler is running an environmentally sound operation. The checklist

provides methods for evaluating and comparing the positive and negative

factors associated with each operation. A positive evaluation does not

guarantee or certify that EPA believes the operation is sound; it only serves as

the basis for making a wise choice.

5.2.2 Approach

Each section relates to a specific function of a typical used oil recycling facility.

Review the questions, answer them, and then identify any liabilities observed

in the normal, day-to-day operations. This means that the consumer must

take time to examine the operation and see how it relates to the question

being asked.

5.2.3 Used Oil Acceptance

The basis of every operation is how the materials are being processed. Thus,

it is critical that quality controls be in place before used oils are received. The

questions in this section concern where the materials come from, how the

facility checks the materials to determine whether they can be accepted by its

processing system, and how the materials are stored prior to processing.

Ouestion Desirable Undesirable

1. Is there a documented procedure for

accepting the waste? Yes No

2. Does the facility require specific laboratory

tests prior to accepting the waste? Yes N o

3. Does the facility segregate the waste received

from each client until after laboratory testing? Yes N o

4. Is there a standard group of clients? Yes N o

5. Is the initial receiving and storage area

neat and clean? Yes N o

6. Is there any evidence of spillage or regular

loss of materials in the storage area? N o N o

7. Do containment measures surround the storage area?

For example, are there walls or berms surrounding the

tanks to keep spilled materials from leaving the area? No Yes

40
5.2.4 Processing

A number of different processes may be used to reclaim used oil. Depending

upon the final use of the recycled oil (whether it is to be used as a fuel, a

cutting oil, or as a high quality reclaimed oil product), the processing steps

usually fall into two categories: filtration or separation. In either case, the oil

must be brought from the storage area into the processing area, usually by

direct piping. It must then go through the processing system, where the oil is

separated from the wastes that contaminate it. The basic concern is that no

uncontrolled losses occur as a result of haphazard processing or a lack of

maintenance.

Ouestion Desirable Undesirable

1. Are the processing areas contained to prevent

loss of spills (i.e., does a wall or berm surround

the processing area)?

2. Is this a closed process system with no vapor

loss and no strong odors?

3. Is the wastewater from the process discharged

to a sanitary sewer or a permitted treatment unit?

4. Are problems encountered when the type of oil

being processed is changed?

5 Is the residual portion (sludge, bottoms or

sediment) being properly disposed of (e.g.,

asphalt plant or an approved landfill)?

Yes N o

Yes

Yes

N o

N o

N o

Yes

Yes No

5.2.5 Products

This section covers product storage and use. It provides an indication as to

the efficiency of the overall facility. Most processing operations discharge the

finished product to a holding tank where it is held to settle, drain additional

water, and wait until a client is ready to pick it up.

41
Ouestion Desirable Undesirable

1. Is the product storage area clean and neat,

showing no evidence of spills? Yes N o

2. If the product is transferred to drums for shipment

to clients, is it stored in a contained area to

prevent spillage? Yes No

5.2.6 Compliance

This section is used to determine whether or not the facility is operating

properly under federal or state requirements and whether it is able to meet

the requirements of these regulatory agencies. After talking to the facility

operator you can verify your findings by calling the appropriate agencies and

speaking with the local inspector.

Ouestion Desirable Undesirable

1. Does the facility have a federal EPA operating

permit, usually known as a RCRA permit?

2. Has the facility been visited by any state or federal

environmental inspectors?

3. Are copies of those inspection reports available

from the facility?

4. Did these inspections uncover any violations or

non-compliance issues?

5. Has the facility been inspected by local fire

marshals or fire departments?

6. Have there been any instances of environmental

release or contamination resulting from the

facility’s operations?

7. Have any environmental lawsuits been brought

against the facility?

42

Yes No

Y e s No

Y e s No

N o Yes

Y e s N o

No Yes

N o Yes

5.2.7 Assessment

The preceding questions allow one to compare the negative versus the

positive aspects of an operating facility. The first column indicates a positive

response and the second a negative response. Compare the number of

answers in the first column with the number in the second. If the number of

answers in the first column is greater than the number in the second column,

then the facility has more positive than negative factors or has fewer

environmental liability indicators. When comparing multiple facilities, the

facility with the most answers in the first column would be one’s best choice

in terms of being the most environmentally sound. As the number of

answers in the second column increases, the facility may have less control

over its operations and thus may be less environmentally sound. Generally,

a facility that has more than half of its answers in the second column should

be avoided since it may have too much potential for environmental

impairment. 12

5.3 Recommended Guidelines for Used Oil Collection Centers

1.

2.

3.

4.

5.

6.

Operating Procedures

The owner or operator of the collection facility should ensure that all

containment devices, including tank pipes and containers used for

collection or storage, are inspected (at least once a week, month, etc.). The

tank should also be inspected (weekly, monthly) to avoid malfunctions,

operation error and/or leaks.

Each designated collection facility should have the accumulated oil picked

up by a registered used oil transporter on a regular basis. A list of

registered transporters should be available from your state regulatory

officials .

Any accumulation of water in the tank should occasionally be drained off

and properly disposed of. Inquire with the local environmental

regulatory agency about proper disposal.

The collection facility operator should inspect the tank gauge and record

the oil level daily.

The facility should be attended at all times, or provided with after hours

security to minimize the possibility of unauthorized access, vandalism, or

any unplanned sudden release of used oil into the environment.

Each designated facility should post and maintain a durable and legible

sign readily visible in an appropriate place which indicates that the facility

is a used oil collection facility site and also indicates the hours that the

facility will be open.

 Alford, Michael; Versar Inc., 1988. 12

44
7. The collection facility should not charge a fee to persons making deposits.

8. All tanks must be locked except during filling and emptying.

9. Road access to the collection area should be convenient. Access should be

limited to those times that an attendant is on duty.

10. A recordkeeping system should be set up and maintained to keep account

of the dates, volume of used oil received and transported off site, the

transporter’s name, and the oil’s final destination.

11. Routine cleanup and replacement of absorbent material under the tank

should be performed monthly.

12. Trash cans should be available for the disposal of empty containers.

13. A plan containing emergency procedures should be prepared and retained

on site which describes the actions facility personnel should take in

response to vandalism, theft, fires, explosions or any unplanned release

of used oil on the ground which would threaten human health and the

environment. The plan must contain the names, addresses and phone

numbers of the local police, fire departments and local emergency

response teams to coordinate emergency services in a time of need. The

plan containing emergency procedures should be located within the office

of each of these groups.

14. Finally, one may want to consider periodic testing of the used oil with a

chlorine/halogen detection kit for used oil to monitor whether the oil is

being contaminated by household hazardous waste. Also check with the

used oil transporter who may have some sort of halogen detection device.

(Guidelines adapted from Florida’s Department of Environmental

Regulations Guidelines for Collection Centers.)

5.4 Local Used Oil Recycling Coordinator Suggestions

1. Determine the number of retailers.

2. Determine the number of service stations.

3. Determine the volume of used oil which is generated, collected and

recycled by all program participants within the community.

4. Determine the volume of new oil purchased by public agencies in the

community, the volume of used oil generated, and the volume

recovered. From these figures, estimate the revenues brought into the

area through used oil recycling.

45
5.

6.

7.

8.

9.

Send letters to retailers encouraging them to post a point of purchase

sticker or sign urging recycling of used oil.

Send letters to service stations or auto repair centers requesting them to

act as used oil collection centers; find out which stations are full service;

include a return postcard and specific date to respond by. Also indicate

that all employees should be aware of the program.

Develop a list of Used Oil Collection Centers and participating service

stations.

Ask Used Oil Collection Centers for current volume of oil generated at

the station and percent donated by do-it-yourself oil changers; ask them to

keep a record of volumes of oil brought in after signing up as a collection

center.

Develop a system to monitor each Used Oil Collection Center’s data;

conduct follow-ups after a given period of time to record program

successes and failures.

10. Generate a press release announcing the used oil program and the

number and location of collection centers; this can be arranged through

your local press centers.

11. Conduct a press event featuring a popular individual in the community

and use visual aids to attract media attention (e.g., oil change by mayor;

baseball mascot featured in event, etc.).

12. Arrange for a week-long public awareness week, which can be launched

by the press event; arrange for all profits from oil sales to go to local

charities; advertise this fact.

13. Seek cooperation between local used oil industry members, service

station associations located within the community and local service

groups.

14. Distribute television/radio public service announcements to local

stations after initial on-site visits with participating managers.

15. Investigate and research the possibility of the curbside collection of used

oil. Your local hauler/recycler may be willing to participate if you can

provide good background information and show how this has worked in

other communities (such as Sunnyvale, California).

46
GENERATION OF USED AUTOMOTIVE OILS BY STATE

The following table was prepared by the National Oil Recyclers.

Association. Direct figures for used oil generation were not

available on a state-by-state basis: however, state figures for

gasoline consumption are available (based on tax reports). It was

assumed that states generated used automotive. oil in

approximately the same proportion as they consumed gasoline. The

base figure used for the total amount of used automotive oils

generated in the United States was 847 million gallons, the figure

given for 1988 by Temple, Barker, and Sloane in a 1989 report

prepared for the Environmental Protection Agency.

STATE GALLONS (MILLIONS) STATE GALLONS (MILLIONS)

Alabama

Alaska

Arizona

Arkansas

California

Colorada

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinoi s

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

17.0

1.7

8.5

8.5

101.6

12.7

12.7

2.5

46.6

25.4

2.5

3.4

33.9

21.2

10.1

8.5

12.7

17.0

5.1

17.0

17.8

33.9

17.0 

8.5

21.2

Montana 3.4

Nebraska 8.5

Nevada 4.2

New Hampshire 4.2

New Jersey 25.4

New Mexico 5.9

New York 42.4

North Carolina 25.4

North Dakota 2.5

Ohio 33.9

Oklahoma 12.7

Oregon 9.3

Pennsylvania 33.9

Rhode Island 2.5

South Carolina 11.0

South Dakota 2.5

Tennessee 18.6

Texas 64.4

Utah 4.2

Vermont 1.7

Virginia 22.0

Washington 17.0

West Virginia 5.9

Wisconsin 17.0

Wyoming 1.7

47
5.5 How Many Used Oil Collection Centers Should a Community Have

The number and capacity of the used oil collection centers in any given area is

determined by the population size of the municipality they will serve so that

they can efficiently handle the anticipated amount of used oil generated by

do-it-yourself oil changers. A suggested minimum number of used oil

collection facilities for a given community population is:

1. Zero, if the population is less than 3,500;

2. One, if the population is at least 3,500 but less than 25,000;

3. Two, if the population is at least 25,000 but less than 100,000; and

4. Three, if the population is at least 100,000 plus an additional facility for

each additional 100,000 of population. 

The American Petroleum Institute has published an excellent how-to

manual, A Guidebook for Implementing Curbside and Drop-off Used Motor

Oil Collection Programs (February 1992) which provides useful free

information. Write to: American Petroleum Institute, 1220 L Street, NW,

Washington, DC, 20005; or call 202-682-8000.

13 Wisconsin, Department of Natural Resources, Engine Waste Oil Collection Storage and

Transportation, June 1982, p. 689.

48
DISPOSAL TRAIN FOR USED OIL

I
6.0 CONCLUSIONS

Of the 1.35 billion gallons of used oil Americans generate annually, an

estimated 60 percent, or 850 million gallons, are reclaimed. Of this, 90 percent

is recovered as a fuel supplement. A small percent is currently being rerefined. There is no question that both slipstreaming used oil or re-refining

oil back into a lubricant should be encouraged as much as possible. These two

recycling technologies presently have severe practical and economic

constraints.

Slipstreaming a small amount of used oil into existing refineries is probably

the most significant development in this industry. Utilizing existing

equipment and pollution controls and thus piggy-backing on a refiner’s

ability to crack crude oil is an. innovative way to recycle used oil with virgin

oil. The only drawback is the cost to transport used oil feedstock in sufficient

quantities to justify the process for refiners.

Re-refining used oil back into a lubricant needs the support of government

procurement to assist this technology in a time where the oil market has been

depressed. This industry is quite active in all parts of the world except in the

U.S. because of numerous factors, including the low cost we pay for oil. Any

“buy recycled” campaign should include the purchasing of re-refined used oil.

The first two technologies - slipstreaming and re-refining - represent the best

attempts to return used oil to its original state. The second two

technologies - direct burning and reprocessing-transform used oil into an

alternative fuel as its end market.

Reprocessing used oil or cleaning used oil to be used as industrial fuel plays a

valuable role in marketing this petroleum by-product. Strong management

standards are important to ensure that the necessary pollution controls are in

place to test, and properly dispose of the waste materials, and to lessen toxic

emissions to the air basin.

Burning used oil without reprocessing plays an important role for certain

types of generators, primarily those who do not have access to other methods.

Like reprocessing, this technology requires strict management standards in

disposing of the ash and in ensuring proper emission controls. Also, other

hazardous wastes associated with the specific generators’ activities should be

strictly manifested and accounted for. The burning of hazardous waste in this

sector can cause serious health and safety problems.

The draining and recycling of used oil filters is another area which requires

public and government support. Every motor vehicle administration in the

U.S. could, at a minimum, promote that DIYs drain their oil filter before

disposal. This could also be promoted on every oil filter sold.

50
The status of mobile oil refiners is not clear. The opportunities to develop

on-site, closed-loop, recycling technologies can not be over-stressed.

Reclaiming oil for reuse on site is a very attractive prospect since

transportation costs and the possibility of increased spills are severely

curtailed.

As discussed, there are many used oil technologies that differ in how they

reclaim ‘used oil. No matter what technology is used, one important market

must be changed. Roughly 20 percent of all the total used oil generated is

generated by the DIY oil change market. Of this, nearly 80 percent does not

become marketed and is “lost” in the environment. This represents half of

all the used oil discarded. Public education is crucial to further create greater

incentives and awareness of used oil recycling. Further, private/public

cooperative efforts may prevent used oil from being disposed of improperly

and maybe lessen further law suits and the sensational news coverages that

have diverted proper attention to this issue. This offers numerous marketing

opportunities to abate a serious environmental problem.

The oil can is mightier than the sword.

- Everett Dirksen

51
APPENDIX 1

USED OIL REFERENCES

The most important sources consulted during the preparation of this paper

are listed below.

FEDERAL REGISTER NOTICE

Environmental Protection Agency Management System; Identification

and Listing of Hazardous Waste; Recycled Used Oil Management

Standards; Final Rule, September 10, 1992.

Environmental Protection Agency Management Standards Issued to

Control Potential Risks from Recycled Used Oil - No Hazardous Waste

Listing, August 13, 1992, EP/530-F-92-018.

Cost and Economic Impact Screening Analysis for the 1991 Used Oil

Proposal, Regulatory Analysis Branch, Office of Solid Waste, U.S.

Environmental. Protection Agency, August 14, 1991.

Environmental Protection Agency Proposed Rule, Hazardous Waste

Management System; Identification and Listing of Hazardous Waste; Used

Oil; Supplemental Notice of Proposed Rulemaking, 56 Federal Register

48000, September 23, 1991.

ENVIRONMENTAL PROTECTION AGENCY (EPA) REPORT

An Innovative Graduate Thesis Evaluates Used Oil End Uses, “The

Environmental Challenge of 1990’s,” Proceeding of the International

Conference on Pollution Prevention, USEPA/600/9-90/039, September

1990, p. 643-651).

“Preliminary Data Summary for the Used Oil Reclamation and Rerefining Industry,” Office of Water Regulations and Standards, September

1989.

ENVIRONMENTAL PROTECTION AGENCY. (EPA) CONTRACTORS

REPORTS

Franklin Associates, Inc., “Composition and Management of Used Oil

Generated in the United States,” Office of Solid Waste and Emergency

Response, November 1984.

Development Planning Research Associates, Inc., “Selected Characteristics

of the Waste Oil Space Heater Industry,” Office of Solid Waste, July 1983.

52
Temple, Barker & Sloan, Inc., “Background Document: Regulatory Impact

Analysis for the Management of Used Oil,” Office of Solid Waste,

November 1985.

Temple, Barker & Sloan, Inc., “Generation and Flow of Used Oil in the

United States in 1988,” Office of Solid Waste, November 30, 1989.

Versar, Inc., “Hazards of ‘Unsafe’ Used Oil Management Practices (Draft

Report),” Office of Solid Waste, December 23, 1986.

Versar, Inc., “Health Risk Assessment: Review (Draft Report),” Office of

Solid Waste, January 2, 1987.

Versar, Inc., ‘Waste Oil Characterization Volumes and Treatment Study

(Final Draft Report),” Office of Solid Waste, March 9, 1987.

DEPARTMENT OF ENERGY REPORTS

Aerospace Corporation, Utilization of Used Oil, Division of Industrial

Energy Conservation, August 1978.

Argone National Laboratory, Energy and Material Flow in Petroleum

Refining, Office of Industrial Programs, February 1981.

Brinkman, D.W., et al., Environmental, Resource Conservation, and

Economic Aspects of Used Oil Recycling, Bartlesville Energy Technology

Center, April 1981.

Cotton, F.O., Waste Oil Lubricating Oil: An Annotated Review,

Bartlesville Energy Technology Center, October 1982.

GCA Corporation, The Fate of Hazardous and Non Hazardous Wastes in

Used Oil Disposal and Recycling, October 1983.

Market Facts, Inc., Analysis of Potential Used Oil Recovery from

Individuals, Office of Industrial Conservation, July 1981.

Mueller Associates Inc., Waste Oil: Technology, Economics,

Environmental, Health and Safety Concerns,” Office of Environmental

Analysis, January 1987.

DEPARTMENT OF COMMERCE, National Bureau of Standards (NBS)

National Bureau of Standards, “Recycled Oil Program Test Procedures for

Recycled Oil Used as Burner Fuel,” August 1980.

National Bureau of Standards, “Measurements and Standards for Recycled

Oil,” September 1979.

National Technical Information Services, Waste Oil Reclamation (January

1980 - August 1991), September 1991.

53
STATE USED OIL RECYCLING REPORTS

Energy and Environmental Research Corporation, Oil Waste Management

Alternatives Symposia-Conference Proceedings, April 1988 (Sponsored by

the California Department of Health Services and U.S. EPA).

Energy and Environmental Research Corporation, California Guide to

Waste Management Alternatives for Used Oil, & Other Oily By-products,

April 1988.

University of Illinois, Used Oil Management In Illinois, July 1991.

Franklin Associates, State-wide Market Study for Used Oil in Michigan,

February 1987.

Shull, H. Eugene, Natural Resources Research Institute, University of

Minnesota, Feasibility Study for Long-Term Management Options for

Used Oil in Minnesota, October 1, 1987.

New York State Legislative Commission, Used-But Useful: A Review of

the Used Oil Management Program in New York State, October 1986.

North CaroIina State University, Managing Used Oils, March 1987.

Versar, Inc., Franklin Associates, Jacobs Engineering, “Assessment of State

Used Oil Management Practices and Regulations,” Volume I, June 9, 1986.

Barrett, Steve, “Used Oil: A Progress Report with Recommendations,”

Washington State Department of Ecology, December 15, 1990.

INDUSTRY STUDIES

The American Petroleum Institute, A Guidebook for Implementing

Curbside and Drop-off Used Motor Oil Collection Programs by

Washington Citizens for Recycling Foundation (February 1992).

American Petroleum Institute, Recycling Motor Oil: A Model Program

(API Pub. 1591, Third Addition, December 1988).

Nolan, J., et al., Used Oil: Disposal Options, Management Practices and

Potential Liability, Government Institutes, March 1990.

OTHER INFORMATION SOURCES

Carnegie-Mellon University, “Regulation and Disposal of Used Motor

Oil,” Engineering and Public Policy Department, December 15, 1990.

Wolfe, Paris, Economics of Used Oil Recycling: Still Slippery, Resource

Recycling, September 1992, pg. 28-40.

54
APPENDIX II

LIST OF VENDORS

II.a. Direct Burning

Waste Oil Heater Manufacturers Association

members and contact points:

Advanced MetalTech

194 Speedvale Ave., West

Guelph, Ontario

Canada N1H 1C3

Contact: Bill Jager

(519) 824-7653

Lenan, Inc.

20 South Main Street

Janesville, WIS 53545

Contact: Bill Forbes

(608) 752-1601

Black Gold Corporation F.L. Industries, Reznor Division

240 Great Circle Road, #344 1555 Lynfield Road, Suite 250

Nashville, Tennessee 37228 Memphis, Tennessee 38119

Contact: Wayne Robertson, Esq. Contact: Bill Powis

(615) 251-0680 (800) 888-0211, ext. 278

Clean Burn, Inc.

83 S. Groffdale Rd.

Leola, PA 17540

Contact: David Wolf

(800) 331-4183

Shenandoah Manufacturing Co.

P.O. Box 839

Harrisonburg, VA 22801

Contact: Richard Lantz

(703) 434-3838

II.b. Reprocessors

For the names and phone numbers of over 60 Transporters and Recyclers,

contact:

National Oil Recyclers Association

Ms. Kitty McWilliams, Executive Director

2266 Bellefield Ave.

Cleveland, OH 44106

(216) 791-7316

II.c. Bypass Oil Filtration System

T.F. Purifiner

4300 South U.S. #l Suite 203-248

Jupiter, FL 33477

407-627-0629

55
II.d. Used Oil Filter Recycling

Provided by the Convenient Automotive Services Institute (August, 1992)

Almar Petroleum Co. American Iron & Supply

P.O. Box 269 2800 Pacific North

Gloucester, MA 01930 Minneapolis, MN 55411-9911

Contact: David Dow Contact: Doug Hall

(508)283-3287 (612) 529-9221

Bio Cycle

10029 Glen Street

Bakersfield, CA 93312

Contact: Ben McNeil

(805)589-7757

Calderia Brothers, Inc.

N. Main Shore Road

Waretown, NJ 08758

Contact: Joe Calderia

(609)971-0506

California Oil Recyclers Inc.

P.O. Box 248

Newark, CA 94560-0248

Connecticut Waste Oil Inc.

P.O. Box 179

Meriden, CT 06450

Contact: Joe Calvi

(203)235-8889

Crane’s Waste Oil

6504 Juniper Road

Lake Isabella, CA 93204

(619) 379-4377

Dow Smith Oil Filter Rec.

P.O. Box 269

Gloucester, MA 01930

Contact: David Dow

(508) 281-5969

Express Oil Co.

8748 Remmet Avenue, Suite B

Canoga Park, CA 91304

(818)700-7996

Industrial Pollution Con.

810 Poindexter St.

Jackson, MS 39204

Contact: Mark Case

(601) 355-2448

CRT

1300 Plymouth St.

Bridgewater, MA 02324

Contact: Jack Mooney

(800) 833-8278

Evergreen Oil Co.

6880 Smith Ave.

Newark, CA 94560

Contact: Kirk Hayward

(415) 795-4410

Heritage Environmental

7901 West Morris

Indianapolis, IN 46231

Contact: Frank Fehsenfeld

(800) 544-0498

Industrial Service Corp.

1633 S. Marsh

Kansas City, MO 64126

Contact: Timothy J. Roche

(816) 833-1919

56
Industrial Pollution Control

P.O. Box 3569

Jackson, MS 39207

Contact: Jeff Summers

(601) 238-2448

Intersol of Florida

13902 N. Dale Mabry, #120

Tampa, FL 33618

(813) 963-1534

International Petroleum Corp. L.S. J. Communications

14890 Intracoastal Drive 17 Bon Aire Circle

New Orleans, LA 70129 Suffern, NY 10901-7008

Contact: Dwight Diagle Contact: Susan Muller

(504) 254-9021 (914) 357-7000

Mesa Gil, Inc.

4701 Broadway, SE

Albuquerque, NM 87105

Contact: John F. Dempsey

(505) 877-8855

MetroPro

6186 Old Franconia Road

Alexandria, VA 22310

(703) 971-8300

N. Hennepin Recycling

8550 Zachary Lane 

Maple Grove, MN 55369

Contact: Timothy Klatke

(612) 943-2239

Oil Filters Recyclers

P.O. Box 4193

Springfield, IL 62708

Contact: Jim Johnson

(217) 789-4970

Oil Services, Inc.

19412 Country Rd., #81

Osseo, MN 55369-9229

Contact: Paul DeRosia

(612) 943-8198

ProCycle Oil, Inc.

P.O. Box 1540

Boyd, TX 76023-1540

(817) 433-2888

Product Recovery & Recycling Refineries Service

P.O. Box 36 P.O. Box 1167

Ft. Calhoun, NE 68023 Patterson, CA 95363

Contact: Mark Stephens

(402) 238-2518

Rollins Enterprises, Inc.

Route 1- Box 1488

King George, VA 22485

Contact: Bobby Dunnington

(703) 235-5907

S&S Services

6573 Guthrie Road

Jacksonville, FL 32205

(904) 695-0992

57
Safety Kleen Corp.

777 Big Timber Road

Elgin, IL 60123

Contact: Mike Carney

(708) 697-8460

Specialty Environmental Services

2740 Valley Drive

Shreveport, LA 71148

(800) 256-9900

Sunwest Energy Corp.

2518 Brandt Ave.

Nampa, ID 83687

(208) 465-4800

TAMCO

P.O. Box 325

Etiwanda, CA 91739

Contact: Leonard Robinson

(714) 987-2521

United Recyclers, Inc.

105 East Drive

Melbourne, FL 32904-1026

Contact: John F. O’Connell

(407) 722-5757

Wadhams Sales & Service

6 South 141 Park Meadow Drive

Naperville, IL 60540

Contact: Pat Wadhams

(708) 420-0123

II.e. Re-refining

Scrap Metal Processors

150 N. Girard Ave.

Minneapolis, MN 55406

Contact: Mickey Minter

(612) 377-6633

Spencer Environmental

914 S. Molalla Avenue

Oregon City, OR 97045

Contact: Mike Gibson

(503) 655-0896

Sunwest Energy Corp.

P.O. Box 17008

Portland, OR 97217-0008

(503) 223-4224

Tri-Star Environmental

267 West 2950 South

Salt Lake City, UT 84115

(801) 596-9414

U.S. Foundry

8351 N.W. 93rd Street

Meadley, FL 33165

Contact: Doug Linne

Zunker Iron & Metal

Route 6 - Box 51

Alexandria, MN 56308

Contact: Dick Zunker

(612) -763-4673

Manufacturers and Distributors of Re-refined Lubricating Oils

May 1992

This list has been prepared by the Center for Earth Resource Management

Applications, Inc. to facilitate implementation of the U.S. Environmental

Protection Agency’s guideline for purchasing lubricating oils containing rerefined oil .

58
Product information has not been verified either by EPA or by CERMA. To

add or correct information, or for information on the EPA Guideline for

Procurement of Lubricating Oils Containing Re-refined Oil, call the Recycled

Products Information Clearinghouse at (703) 941-4452.

Manufacturers

BresLube USA, Inc. Product A:

Oil Viscosity:

7001 West 62nd Street

Chicago, IL 60638

Contact: Jim Hoffman

Phone: (312) 229-1500 Fax: (312) 229-0666

API Service:

Packaging

Product B:

Packaging

Product C:

Packaging

Plants:

Engine Lubricating

5W30, 10W30,

1OW40, 15W40,

1OWSAE, 20WSAE,

20WSAE, 40WSAE

5OWSAE, 2OW50

Full range SG/CC/

CD/CE

Quarts, pails, and

drums (and gallons

for 15W40 and

30WSAE)

Hydraulic Fluid

Pails and drums

Gear Oil

Pails, kegs, and drums

(80W90/GL5 also

available in gallons)

Breslau, Canada

East Chicago, IL

Owned by: Safety Kleen

Distribution: U.S. and Canada

DeMenno/Kerdoon Product A: Engine Lube. Oil

2000 N. Alameda St. Viscosity: 10W30 & 10Wa ̃0

Compton, CA 90222 API Service: SF/CC

Contact: David Valencia Packaging Bulk

Phone: (213) 537-7100 Fax: (213) 639-2946 Product B: Paraffinic Base Oil

Distribution: Sold and labelled by repackagers Western U.S.

Ecoguard, Inc. Product A: Engine Lubricating Oil

Promax Division (Future availability)

301 East Main Street Product B: Hydraulic fluids

P.O. Box 14047 Brands: Ecoguard

Lexington, KY 40512 Distribution: United States

Contact: Cleve Huston Owned by: A subsidiary

Phone: (606) 264-7389 Fax: (606) 264-7012 of Valvoline

59
Evergreen Oil Product A:

5000 Birch Street Product B:

Suite 500 Product C:

Newport Beach, CA 92660 Packaging:

Contact: Lori Klein Motor oil:

Phone: (714) 757-7770 Fax: (714) 474-9149 Distribution:

Plant:

Mohawk Lubricants, Ltd. Product A:

130 Forester Street Viscosity:

N. Vancouver, BC V7112M9 API service:

Canada

Contact: Terry Wilson Packaging

Technical Manager

Phone: (604) 929-1285 Fax: (604) 929-8371 Product B:

Product C:

Product D:

Brands:

Distribution:

Plant:

Basestock

Packaged motor oil

Hydraulic fluids

Bulk, sold to repackagers

Sold to distributors

U.S. and Canada

Newark, California

Engine Lube. Oil

Full range

SF/SC/CC/

CD/DC-IVCE

Drum, bulk, 1 liter,

4 liter, 20 liter pail

Hydraulic Fluids

Gear Oil

Industrial Lubricants

Mohawk Oil, Spartan

Oil, Canadian Pride

Canada and

Northwestern U.S.

North Vancouver,

British Columbia

Vendors/Distributors

Enviroil

P.O. Box 3646

Houston, TX 77253-3646

Lyondell Petrochemical Company

12000 Lawndale Avenue

P.O. Box 2451

Houston, TX 77252

Contact: Andy Wnek

Phone: (708) 344-9444 or 344-9446

Distribution: United States

Plants: Various U.S.

compounding locations

Product A: Engine Lube. Oil

Viscosity: 10W30

API Service: SG/CD

Energy Conserving II

Packaging Quarts, drums,

and bulk

Product B: Anti-Wear

Hydraulic Oil

Viscosity: ISO 32,46 and 68 grades

Packaging Drums and bulk

Product C: Diesel Engine Lube. Oil

Viscosity: 15W40

API Service: CF-/CD IVSG

Packaging Quarts, drums, bulk

60
Prime Lube, Inc. Product A: Engine Lube. Oil

800 Roosevelt Avenue Viscosity: 10W30

P.O. Box 539 API Service: SC/CD

Carteret, NJ 07008 Energy Conserving II

Contact: Donald A. Di Vite Packaging: Quarts and drums

Phone: (800) 634-4615 Fax: (201) 541-7999 Product B: Anti-Wear

Hydraulic Oil

Viscosity: ISO 32, 46, 68 grades

Packaging Drums

Product C: Diesel Engine Lube. Oil

Viscosity: 15W40

API Service: CF-4/CD IVSC

Packaging: Quarts and drums

Brand: Enviroil

Distribution: CT, NJ, NY

II.f. Slipstreaming

Lyondell Petrochemical Company

P.O. Box 3646

1221 McKinney, Suite 1600

Houston, TX 77253-3646

Contact: Manager, Special Lubricant Projects

Phone: (713) 752-7303 or

Customer Connection: (800) 447-4572

61

APPENDIX III. ORGANIZATIONS AND ASSOCIATIONS

USED OIL RECYCLING

Asphalt Institute

PO Box 14052

Lexington, KY 40512-4052

606-288-4999

American Petroleum Institute

1220 L street, NW

Washington, DC 20005

202-682-8000

American Society for

Testing and Materials

1916 Race Street

Philadelphia, PA 19103

215-299-5400

Association of Petroleum Refiners

PO Box 605

Ellicott Station

Buffalo, NY 14205-0650

716-855-2757

Automotive Parts and

Accessories Association

4600 East-West Highway, 3rd Floor

Bethesda, MD 20814

301-654-6664

Center for Earth Resources

Management

5528 Hempstead Way

Springfield, VA 22151

703-941-4452

Convenient Automotive

Services Institute

PO Box 34595

Bethesda, MD 20817

301-897-3191

Community Coalition For

Oil Recycling

PO Box 141255

Dallas, TX 75214-1255

214-821-3000

Greenpeace, USA

1436 U Street, NW

Washington, DC 20009

202-462-1177

Green Seal

1875 Connecticut Ave, NW

#300-A

Washington, DC 20009-5818

202-986-0520

Hazardous Waste

Treatment Council

1440 New York Avenue, NW

Washington, DC 20005

202-783-0870

Independent Lubricant

Manufacturers Association

651 S. Washington Street

Alexandria, VA 22314

703-684 -5574

Izaak Walton League

1401 Wilson Blvd., Level B

Arlington, VA 22209

703-528-1818

Motor Vehicles Manufactures

Assn. of the United States, Inc.

7430 2nd Street, Suite 300

Detroit, MI 48202

313-872-4311

National Asphalt

Pavement Association

5100 Forbes Blvd.

Lanham, MD 20706-4413

301-731-4748

National Automotive

Dealers Association

8400 West Park Drive

McLean, VA 22102

703-821-7040

63
National Institute for

Petroleum & Energy Research

PO Box 2128

Bartlesville, OK 74005

918-336-2400

National Institute of

Governmental Purchasing

115 Hillwood Avenue

Falls Church, VA 22046

703-533-7715

National Oil Recyclers Association

277 Broadway Avenue

Cleveland, OH 44115

216-791-7316

National Petroleum

Refiners Association

1899 L Street, NW, Suite 1000

Washington, DC 20036

202-457-0480

Natural Resources Defense Council

40 w. 20th street

New York, NY 10011

212-727-2700

Petroleum Marketers

Association of America

1120 Vermont Ave, NW

Suite 1130

Washington, DC 20005

202-331-1198

Service Station Dealers

Association of America, Inc.

499 S. Capitol Street, SW

Suite 407

Washington, DC 200034013

202-479-0196

64

Sierra Club

408 C Street, NE

Washington, DC 20002

202-547-1141

Society of Automotive Engineers

400 Comonwealth Drive

Warrendale, PA 15096

412-776-4841

Society of Independent Gasoline

Marketers of America

11911 Freedom Drive

Suite 509

Reston, VA 22090-5602

703-709-7000

United States Department

of Energy

Office of Industrial Programs

1000 Independence Ave. SW

Washington, DC 20585

202-586-2369

United States -Environmental

Protection Agency

401 M Street, SW

Washington DC, 20460

1-800-424-9346 (RCRA Hotline)

Waste Oil Heating

Manufacturers Association

c/o Patton, Boggs & Blow

2550 M Street, NW

Washington, DC 20037

202-457-6420

The Waste Watch Center

16 Haverhill Street

Andover, MA 01810

508-470-3044