IV-670/2-74-013
nuary 1974
Environmental Protection Technology  Series

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            RESEARCH REPORTING SERIES
Research reports of the  Office  of  Research  and
Monitoring,  Environmental Protection Agency, have
been grouped into five series.  These  five  broad
categories  were established to facilitate further
development  and  application   of   environmental
technology.   Elimination  of traditional grouping
was  consciously  planned  to  foster   technology
transfer   and  a  maximum  interface  in  related
fields.  The five series are:

   1.  Environmental Health Effects Research
   2.  Environmental Protection Technology
   3.  Ecological Research
   4.  Environmental Monitoring
   5.  Socioeconomic Environmental Studies

This report has been assigned to the ENVIRONMENTAL
PROTECTION   TECHNOLOGY   series.    This   series
describes   research   performed  to  develop  and
demonstrate   instrumentation,    equipment    and
methodology  to  repair  or  prevent environmental
degradation from point and  non-point  sources  of
pollution.  This work provides the new or improved
technology  required for the control and treatment
of pollution sources to meet environmental quality
standards.

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                                                          EPA-670/2-74-013
                                                          January 1974
                          STATE OF MARYLAND

                          WASTE OIL RECOVERY

                                 AND

                            REUSE PROGRAM




                                  By

                         Dr. Edward J.  Martin
                          Mr. Garth D.  Gumtz
                           Grant S-800650

                       Program  Element 1BB041



                           Project  Officer

                        Dr. Peter B.  Lederman
            Industrial Water Treatment Research Laboratory
                National Environmental Research Center
                U.  S. Environmental  Protection Agency
                      Edison, New Jersey  08817
                             Prepared  For

                  THE  MARYLAND ENVIRONMENTAL SERVICE

                         In Cooperation  With

                 OFFICE OF RESEARCH AND  DEVELOPMENT
             «U.S.   ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON, D.C.   20460
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 - Price $2.70

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                               ABSTRACT
This report supplements the findings of a 1971  study conducted by the
Maryland Environmental  Service and the Department of Health and Mental
Hygiene, which concluded that the discharge of  waste oils  to State
waters produced a problem within the State of Maryland.  The report
recommended a comprehensive program of collection, storage, and re-
processing for pollution prevention and for resource recovery.   The
program was guided by the premises that al1 categories of  waste oils
generated within the State were to be managed,  recovered,  or disposed
of, that fuel oils would be the principal products produced, and that
current state-of-the-art technology would be used in the design of
the program elements.

Using questionnaires and interviews, it was estimated that 18.5 million
gallons of waste oils were generated in Maryland in 1972.   Mathematical
models determined the most effective collection systems and economics
for the waste oil program.  Preliminary designs were developed for
different scales of process plants.  Heavy emphasis was placed on pro-
tecting the environment.  Plant costs varied between $3 million for a
7.3 million gallon per year (mgy) plant, to $7.5 million for a 30 mgy
plant.  Management, legislative and regulatory  approaches  to the waste
oil problem were also delineated.

A waste oil recovery and reuse program can be initiated immediately
using existing technology, collection and storage resources.  Because
of a need to consider all sources of waste oils, the program requires
subsidization at lower plant throughputs.  At the 30 mgy capacity,
the program economics can be self-sustaining.

This report was submitted in fulfillment of Grant Number S-800650
under the partial sponsorship of  the Office of Research and Develop-
ment, Environmental Protection Agency.  The work was  completed as of
October 1973.
                                ::: AGENCY
                                  ii

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                             CONTENTS
                                                               Page
Abstract 	 i i
Li st of Fi gures 	  i v
List of Tables 	   v
Acknowledgements 	  xi

Sections:
I       Conclusions and Recommendations 	 1
II      Introduction 	 7
III     Summary 	„	 12
IV      Resul ts of Surveys 	 20
V       Waste Oil Collection and Distribution Network 	 36
VI      Preliminary Design Summary 	 41
VII     Costs of System Alternatives 	 72
VIII    Legislative and Program Management Needs 	 81
IX      Implementation Plan 	 94
X       Bibliography	 104
XI      Appendices 	 107
                                iii

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                               FIGURES
No.                                                          Page
  1   Summary of Waste Oil  Recovery and Reuse Program Options 15
  2   Five Waste Oil Collection Regions - State of Maryland   21
  3   Adsorbent and Solvent Treatment Subsection Schematics   56
  4   Incineration Subsection Schematic 	   58
  5   Waste Oil Recovery and Reuse Programs 	   97
  6   Proposed MES Waste Oil Recovery Plant 	   98
   7   Master Zip Code Regions Based on Coast and
          Geodetic Survey - 100,000 foot grid -
          State of Mary! and 	  171
   8   Industrial Waste Oil Survey Questionnaire 	  172,173
   9   Waste Oil Survey Questionnaire  	  174
 10   Reported Oil Spill and Recovery  Incidents -
          Baltimore Harbor - 7/26/71  - 4/27/73  	  248
                                  IV

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                               TABLES
No.                                                          Page
  1   Waste Oil Sources, 1972 	    1
  2   State of Maryland: Summary of Automotive Waste Oil
         Survey 	   22
  3   From Crankcase Oil Survey: Collection Costs Reported
         By Respondees to Questionnaires 	   23
  4   Quantities Based on Survey Results - Industrial
         Waste Oi 1 - 	   25
  5   Total Annual Volume of Waste Oil as Determined by
         the Automotive and Industrial Oil Surveys 	   26
  6   From Industrial Oil Survey Collection Costs
         Reported by Respondees to Questionnaires 	   26
  7   1972 Consumption of Numbers 4, 5, and 6 Fuel Oils
         by County 	   29
  8   Maryland State Agencies' Fuel Oil Consumption (1972)    30
  9   State of Maryland Users by Individual Zip Codes
         & Pri ces Pai d 	   31
 10   Variations in the Marketing of Automotive Lubes 	   34
 11   Surplus Tankage in the State of Maryland 	   35
 12   Partial Collection System Summary for All Regions ...   38
 13   Waste Oils Generated in Maryland 	   43
 14   1975 Projected Waste Oils 	   44
 15   Potential Waste Oil Re-Refining Unit Processes 	   47
 16   General Unit Process Waste Generation 	   51
 17   Ultimate Disposal Process Alternatives 	   52
 18   Estimated Stream-Day Feed Flows (1975) 	   60

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Tables  (Continued)

No.                                                         Page

 19  Land Requirements 	    61

 20  Preliminary Capital  Cost Estimate for a Full-Scale
        Waste Oil Recovery Plant 	    63

 21  Process Equipment Costs by Plant Subsection 	    64,65

 22  Preliminary Capital  Cost Estimate for a Full-Scale
        MES Tank Farm 	    66

 23  Summary of MES Waste Oil Processing Facility Tank
        Requirements 	    67

 24  Preliminary Capital  Cost Estimate for a First-Stage
        MES Waste Oil Recovery Plant 	    68

 25  Preliminary Capital  Cost Estimate for a First-Stage
        MES Tank Farm 	    69

 26  Estimated Stream-Day Product Flows (1975) 	    70

 27  Summary of Cashflow Revenue and Profit Analyses
        Twenty Alternative System Capacities  	    76

 28  Management Alternatives for a Waste Oil Recovery
        and Reuse Program 	    89,90

 29  PI ant Capaci ty  	    99

 30  Waste Oil Disposal Alternatives 	   100-102

 31  MES Waste Oil Disposal Facility - Product Spectrum ..   103

 32  Standard Industrial  Classification Categories
        Receiving  Questionnaire  	   109 - 113

 33  Preliminary Capital  Cost Estimate for a  "Small"
        MES Waste Oil Recovery Base Plant 	   121

 34  Preliminary Design Net Profit Estimate for  a "Small"
        MES Waste Oil Recovery Base Plant 	   122, 123

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Tables  (Continued)

No.                                                       Page

 35   Removal of Gross Water, Coarse Solids  & Other
         Materials Heavier Than the Oil  	   125

 36   Removal of Water, Solids & Other Materials
         Heavier Than the Oil 	   126

 37   Removal of Light Ends, Naphtha and Water 	   127

 38   Removal of Acidic Compounds, Additives & Contaminants
         Stabilized in Solution and Suspension 	   128

 39   Removal of Additives & Contaminants Stabilized in
         Solution and Suspension 	   129

 40   Separation of Heavy Contaminants Plus  Splitting
         of Oil  Into Various Fractions 	   130

 41   Reduction  of Nitrogen, Sulfur & Oxygen Contaminants
         wi th Hydrogen 	   131

 42   Selective  Extraction of Oil and Contaminants 	   132

 43   Adsorption of Metallic Sulfuretted, Chlorinated &
         Other Additives Plus Odor & Color Bodies 	   133

 44   Removal of Suspended & Settleable Solids From Oil    134

 45   Example Process Train 	   135,136

 46   PUP System Numerical Parameters 	   139

 47   PUP System - Totals Over All Regions -
         Baltimore - 18.0 	   140

 48   PUP System - Totals Over All Regions -
         Waldorf   -18.0	   141

 49   PUP System - Totals Over All Regions -
         Columbia  -18.0	   142

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Tables  (Continued)

No.                                                          Page

 50   PUP System - Totals Over All  Regions -
         Baltimore - 19,8 	    143

 51   PUP System - Totals Over All  Regions -
         Waldorf   - 19.8 	    144

 52   PUP System - Totals Over All  Regions -
         Columbia  -19.8	    145

 53   PUP System - Totals Over All  Regions -
         Baltimore - 22.0 	    146

 54   PUP System - Totals Over All  Regions -
         Waldorf   - 22.0 	    147

 55   PUP System - Totals Over All  Regions -
         Columbia  - 22.0 	    148

 56   PIP System Numerical Parameters 	    149,150

 57   PIP System - Totals Over All  Regions -
         Baltimore - 18.0 	    151

 58   PIP System - Totals Over All  Regions -
         Waldorf   - 18.0 	    152

 59   PIP System - Totals Over All  Regions -
         Columbia  -18.0	    153

 60   PIP System - Totals Over All  Regions -
         Baltimore - 19.8 	    154

 61   PIP System - Totals Over All  Regions -
         Waldorf   - 19.8 	    155

 62   PIP System - Totals Over All  Regions -
         Columbia  -19.8	    156

 63   PIP System - Totals Over All  Regions -
         Baltimore - 22.0 	    157

 64   PIP System - Totals Over All  Regions -
         Waldorf   -22.0 	,	    158

 65   PIP System - Totals Over All  Regions -
         Columbia  -22.0	    159
                                  vi i i

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Tables  (Continued)
No.                                                         Page
 66   Unit Cost of Pipeline Waste Oils 	    162
 67   Barge Costs 	    164
 68   Automoti ve Waste Oi1 Summary 	    179
 69   Automotive Waste Oil Summary 	    180
 70   Waste Oil Survey Response Frequency 	    181
 71   Industrial Waste Oil Summary	    182
 72   Industrial Waste Oil Summary 	    183
 73   Table of Symbols for the PUP System 	    197-199
 74   Table of Symbols for the PIP Collection Network ....    213 - 217
 75   Relative Plant Alternative Locations and
         Distances to Regions 	    220
 76   Summary of Cost, Revenue & Profit (CRP) Model
         Equati ons 	    222 - 225
 77   Summary of Cash Flow, Revenue & Profit (CRP)
         Breakeven Price Per Gallon of Product Produced ..    227
 78   CRP Model - System Parameters for Case   I 	    228
 79   Summary of Cash Flow, Revenue & Profit (CRP)
         Breakeven Price Per Gallon of Product Produced ..    229
 80   CRP Model - System Parameters for Case  II 	    230
 81   Summary of Cash Flow, Revenue & Profit (CRP)
         Breakeven Price Per Gallon of Product Produced ..    231
 82   CRP Model - System Parameters for Case III 	    232
 83   Summary of Cash Flow, Revenue & Profit (CRP)
         Breakeven Price Per Gallon of Product Produced ..    233
 84   CRP Model - System Parameters for Case  IV 	    234

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Tables  (Continued)

No.                                                          Page

 85    Summary of Cash Flow, Revenue & Profit (CRP)
          Breakeven Price Per Gallon of Product Produced ..    235

 86    CRP Model - System Parameters for Case    V 	    236

 87    Summary of Cash Flow, Revenue & Profit (CRP)
          Breakeven Price Per Gallon of Product Produced ..    237

 88    CRP Model - System Parameters for Case   VI 	    238

 89    Summary of Cash Flow, Revenue & Profit (CRP)
          Breakeven Price Per Gallon of Product Produced ..    239

 90    CRP Model - System Parameters for Case  VII 	    240

 91    Summary of Cash Flow, Revenue & Profit (CRP)
          Breakeven Price Per Gallon of Product Produced ..    241

 92    CRP Model - System Parameters for Case VIII 	    242

 93    Spills of Oily Material to Baltimore Harbor 	    244-247

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                           ACKNOWLEDGEMENTS
The assistance and counsel of Dr. P. B. Lederman and Mr.  Kurt Jacobson
of the Environmental Protection Agency is gratefully acknowledged.   The
American Petroleum Institute, the U. S. Bureau of Mines Research Center
at Bartlesville, Oklahoma, the Maryland Petroleum Association, the  Oil
Heat Institute of Greater Washington, the Maryland Oil  Jobbers Council,
and the Washington Sewer Cleaning and Pumping Association, provided use-
ful data and information.

Significant assistance was provided by the State of Maryland, Bureau of
Air Quality Control, the Maryland Port Authority, the Maryland Motor
Fuels Audit Division, the Maryland General Services Administration, and
the Water Resources Administration.

Special thanks are due to the Association of Petroleum Re-Refiners, the
President, Mr. Bel ton Williams, and several member companies who gave
their time and information.
                                    XI

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                               SECTION  I

                    CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Sources

1.   The following are estimates for sources of waste oils generated
     during 1972 in the given categories based on results of the
      surveys:
                   Table 1.  WASTE OIL  SOURCES,  1972

       Waste Crankcase Oils	--- 7   mi 11 ion gallbns, annually '

       Waste Industrial Oils 	 5   million gallons, annually
2.
3.
       Waste Oil from Over-the-
         Counter Sales -	
       Waste Variable Oils (Oil
         Spills, Septic Tanks,
         and Others) —	--•
                                1    million gallons, annually



                                4    million gallons, annually
  Waste Other Oil  (Industrial
    Solvents and Others) 	1.5 million gallons,  annually
        Total Waste Oils 	 18.5 million gallons,  annually

The categories are defined and discussed in the Report (Section IV)

The Waste Oil Survey indicated that 27.2 million gallons of lubri-
cating oils and 16.1 million gallons of automotive lubricants were
sold in the State of Maryland during 1972.  The total of 43.3
million gallons is substantially larger than is indicated by data
available from the U. S. Bureau of the Census and the American
Petroleum Institute for oil sales in the State of Maryland, even
considering any reasonable rate of increase in sales over previous
years.  Because of the comprehensive nature of the survey which
was conducted, estimates based on this survey are considered to
be realistic (Section IV).

The difference between totals of lubricant sales arrived at by
the survey and the data published by the U. S. Census Bureau and
the American Petroleum Institute may be due to the method of
crediting lubricant sales to the particular states.  Maryland
obtains lubricating products from sources outside of the State.
The converse is probably also true:  Some of those lubricant
materials accounted for as sales in the State of Maryland are

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     probably partially utilized in other states.  The significance
     of this conclusion is that data available for oil sales should
     be used with care in projecting waste oil volumes in other states
     (Section IV).
4.   The amount of waste oil  currently being collected and either reused
     as fuel, reprocessed, or disposed of lies between 6 and 9 million
     gallons, annually.  A significant portion of the collected oil,
     however, is being reused as fuel  or for dust control  on roads with
     little or no  preprocessing (Section IV).  The remaining amount  is
     improperly disposed of to the land, watercourses, or sewers, or  is
     being incinerated with other solid wastes or industrial wastes.

5.   A problem does exist in the State of Maryland with regard to satis-
     factory collection and disposal  of all  waste oils generated within
     the State.

Col 1e c t ion a n d S t o r a g e

6.   Between 18 and 22 tank trucks on a full-time utilization basis will
     be required to operate a State-wide collection network for waste
     oils.  Based upon leasing trucks, the total  cost for operating the
     collection system is likely to be between $300,000 and $450,000,
     annually, which represents between 1£ and 3<£ per gallon of waste
     oil collected, depending upon the efficiency and effectiveness with
     which the collection system is operated (Section V).

7.   It appears that an adequate number of vehicles are available to
     collect the waste oil generated within  the State of Maryland. A
     collection program can be implemented in the near future based on
     the capabilities of existing haulers.  Use of personnel and trucks
     maintained by existing haulers will not require purchase or lease
     of trucks or hiring of additional State personnel by the MES (Section
     IV).

8.   The collection system economics are less sensitive to plant location
     in terms of annual costs than operating parameters including system
     overhead, hourly labor wage rates, the  rate of utilization of
     vehicles, and the routes used by the vehicles in collection from
     individual sources (Section V).

9.   In order to minimize the cost of collection, intermediate storage
     depots are required in all regions except the region in which the
     central storage and reprocessing facility is located.  Requirements
     for capital expenditures are likely to  be about $70,000 for inter-
     mediate storage tanks, if new tanks are installed.  Capital expenditures
     are not required if lease-tank storage  is used.  Storage tank capacity
     exists in some parts of the State for immediate utilization (Sections
     IV and  V).

10.  There  is an adequate volume of available storage to meet the
     immediate  needs of the program,  including intermediate storage

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     requirements.  However the existing conditions and possible addi-
     tions which may be required at each available storage location
     must be identified by surveying each installation (Section IV)-

 11.  There are, currently, no collection mechanisms for handling waste
     oils from the automobile users who purchase oil over the counter at
     retail outlets and change crankcase oils themselves.

 Processing

 12.  A plant, using state-of-the-art technology as of early 1973, can be
     designed and operated for reprocessing waste oils into usable pro-
     ducts and for disposing   of non-processable oils.  The plant process
     consists of adsorbent treatment, solvent extraction and incineration.
     The major premise upon which the plant design was based is that all
     sources of waste oil would be received and that the widest possible
     range of waste oils would be processed into fuel  oil products for
     use in facilities owned and operated by the State of Maryland.  In
     addition, the plant would have the capability to be modified to
     produce products of greater value, e.g., lube oil base stock.
     Ongoing development efforts may modify this conclusion in the future
     (Section VI).

 13.  A processing and disposal plant of 22 million gallons per year
     capacity (design operating base of 300 stream-days per year) will be
     adequate to meet State of Maryland requirements in 1975 in the event
     that a total capability for disposal of industrial waste oils is
     required and complete collection of all waste oil categories is
     accomplished.  Such a plant would cost about $5.7 million (Section VI),

 14.  A first phase of a total  waste oil processing system can be built
     with a capacity of 10 million gallons per year at a cost of 3 million
     dollars.   It will  accept all  automotive waste oils,  and a portion of
     the reprocessable industrial  oils identified in Conclusion #1.
     The plant will also have an incinerator to dispose of the residues
     from the processing plant and about half of the non-processable
     waste oils.   The plant includes batch operation and consists of only
     those units  which can become  part of the proposed 20 or 30 million
     gallon adsorbent treatment, solvent extraction and incineration
     waste oil  recovery system (See Conclusion #12, above).

15.  The current  technology using  vacuum distillation  can adequately
     reprocess  "high  quality"  waste oils.   Used alone, this  processing
     approach  would lead to large  amounts of waste oils being "unprocess-
     able".   Also,  the  preferred product from vacuum distillation is
     lubricating  oil  which does  not comply with the major design criteria
     presented  in Conclusion  #12,  above.   Accordingly, this  process could
     not be considered  for the MES plant design.

16.  Acid-clay  or caustic-clay treatment processes alone  are also inade-
     quate for  a  total  waste  oil  recovery and reuse program  because of

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     the large quantities of noxious waste residues  produced and their
     limitation to high quality waste oil  feed stocks  and to lubricating
     oil products.

Prog ram F i n a n c i n g

17.  Sufficient revenues will  not be generated by the  sale of fuel  oil
     products to sustain either the 10 or  the 22 million  gallon-per-year
     operating programs in their entirety.  Additional  revenues  to  support
     the system could be derived from general revenue  funds, fees to
     the motoring public as the user of the service, or as a subsidy
     to mitigate against pollution from these sources.

18.  A fraction of the plant capacity is allocated to  processing and
     disposal of industrial waste oils. The operating  and capital  costs
     represented by this fraction can be directly recoverable through
     the application of fees charged to the industrial  users.  However,
     actual experience early in the program is required to identify the
     cost to each specific source (Section VII).

19.  Additional revenues through application of fees probably will  not be
     required for the waste oil recovery and reuse program system financ-
     ing, provided an additional 8 million gallons per  year of reprocessable
     waste oils could be obtained from surrounding states.  (This estimate
     is based on the 8 million gallons being reprocessable to fuel  oil
     products with minimum waste generation) (Section  VII).

Regulations

20.  Existing EPA data indicate that the use of waste  oils for road oiling
     has a high potential for producing water pollution problems as a
     result of runoff.  Existing Maryland  regulations  permit the use of
     waste oils for road oiling (Section VIII).

21.  Maryland does not have lead emission  standards.  However, direct
     burning of unprocessed waste oils by  large users  is carefully con-
     trolled by the Bureau of Air Quality  Control in the Department of
     Health and Mental Hygiene (Section VIII).

22.  Existing legislation is adequate to initiate a waste oil recovery
     and reuse program.

23.  Existing permit requirements are associated with  oil transfer and
     oil spills and are not completely adequate for all the aspects of a
     waste oil collection, storage, and reuse program  (Section VIII).

Prog ram Imp1 erne nt at io n

24.  The State of Maryland can implement a recovery and reuse program in
     a step-wise fashion using a combination of existing collection/
     storage resources, reuse and disposal in Maryland, and waste oil
     reprocessing in other states in the first phase.   Design and

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     construction of a complete waste oil processing plant can take
     place in a subsequent phase when experience related to waste oil
     quantity and quality gained during implementation of the first
     phase demonstrates the need for such a facility (Section IX).

25.  The state-of-the-art which currently exists for the collection,
     storage, reprocessing, and disposal of waste oils is adequate to
     permit early implementation of a waste oil recovery and reuse
     program (State-of-the-Art Report).

26.  Although the techniques discussed in this report have been developed
     for Maryland, they have applicability to other individual states
     or to several states in concert on a regional basis.  In order to
     extend analyses for collection, storage, processing, and product
     recovery, data and information related to these program elements
     to other geographical regions  will require revaluation from the
     point of view of the area under consideration.  Parameters used in
     the collection and distribution networks and program economics
     models can be easily modified; when re-run, these models will pro-
     vide a design basis for other programs.


RECOMMENDATIONS*

1.   The first phase of the waste oil recovery and reuse program should
     be implemented at an early date and consist of the collection,
     storage, and management aspects.  This phase can be implemented without
     without committing the State of Maryland to construction of a
     reprocessing plant (Sections VIII and IX).

2.   Based on the results of this analysis and other work conducted by
     the Environmental Protection Agency and other State agencies, the
     development of waste oil recovery and reuse programs should be
     initiated on a Nation-wide basis (Sections VII, VIII and IX).

3.   Regulations of the State of Maryland should be amended to:

     a)  Control the use of unprocessed waste oil for road oiling
         and dust control purposes;

     b)  Control the burning of unprocessed waste oil, in the diluted
         or undiluted form, as a disposal alternative; and

     c)  Revise the existing permit programs for the control of waste
         oil collection (Section IX).

4.   Financial incentives should be considered to encourage private
     investment in the management and reprocessing phases of the
     program (Sections VIII and IX).
     These are recommendations of Environmental Quality Systems, Inc.
     to the Maryland Environmental Service.

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5.   Continued development of unit processes for the re-refining of
     waste oils is to be encouraged in order to achieve a full-scale
     applicability to the State-wide and regional  programs and verify
     design parameters using waste oil generated in the State of
     Maryland (Section VI and the Preliminary Design Report).

6.   Separate pricing structures for handling, reprocessing, and
     disposal of various categories of waste oils  should be considered
     for financing a program including separate fee structures for
     industrial and other users (Section VIII).

7.   Burning tests and evaluations should be conducted by the MES in
     order to determine the potential of this technique as an alter-
     native, on an interim basis, to reprocessing  of waste oils
     (Sections IX and X).

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                              SECTION  II

                             INTRODUCTION

The importance of developing State-wide and regional waste oil recovery
and reuse programs throughout the United States has assumed new dimensions
as shortages of petroleum products become more apparent.  Even though the
total amounts of waste oils available for reprocessing and reuse are
relatively small compared to the National sales figures for petroleum
products, these amounts could represent a significant fraction of the
actual shortages in specific geographic areas.

A report demonstrating that a waste oil problem exists in the State of
Maryland was prepared jointly by staff of the Maryland Environmental
Service and the Department of Health and Mental Hygiene and published in
1971  (Shields and Miles, 1971).   This report concluded:

     "1.  Oil is one of our most precious natural resources.  It
          is becoming more expensive to purchase in its crude
          form, transportation accidents foul our oceans, inland
          waterways and beaches, and this Nation is dependent on
          long and vulnerable supply lines during times of
          National emergency.

      2.  Much of the approximately 25,000,000 gallons of lubri-
          cating or manufacturing oils sold in Maryland each year
          is used only once.  Many of the oily dredges from auto-
          motive crankcases and industrial plants are indiscriminately
          discharged to our lands and waters.

      3.  The available methods of handling used oil, ranging from
          the most desirable to the least desirable, are as follows:

          a.  Re-refining
          b.  Burning for Heat Recovery
          c.  Incineration
          d.  Burning in Place
          e.  Disposal on or in the Ground or in Water.

      4.  The used oil thrown away each year in Maryland amounts to
          about 45 percent of the new oil sold for lubricating and
          manufacturing purposes in this State.

      5.  This used oil can be re-refined to meet specifications for
          new lubricating oil or reprocessed to meet fuel oil speci-
          fications.

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     6.   Reuse of used oil,  as either a lubricant or for fuel
         burning purposes,  or both, would significantly reduce!

         a.   The dependency of the United States on foreign
             sources of supply,

         b.   Oil spills attributable to tanker and drilling
             accidents,

         c.   The rate of depletion of this valuable natural
             resource, and

         d.   Pollution of our underground waters caused by the
             indiscriminate  dumping of used oil.

     7.   Maryland Environmental Service should investigate design
         and implement methods by which oil now thrown away by
         Maryland's manufacturing plants and automotive service
         stations can be collected and recycled to be used again
         as  fuel in State-owned institutions and as a lubricant
         in  State-owned vehicles.

     8.   This program is well worth the investment required for,
         if  it merely breaks even financially in its operation,
         this pilot project can show how the United States can
         significantly reduce the pollution problems associated
         with the production, transportation, and use of oil  and,
         at  the same time,  nearly double the quantity of lubri-
         cating and processing oil available for this Nation's
         use."

The implementation of a comprehensive WORRP in the State of Maryland can
have several desirable benefits:

     —  Help alleviate fuel oil shortages during the winter
          months if products are stored for use during these
          periods.

     —  Eliminate environmental damage to the water, land
          and air resources  of Maryland through use of sound
          practices for collection, reuse and disposal of
          oily wastes.

     —  Eliminate deliberate high volumes of waste oil
          spills, and the cost associated with cleaning up
          these spills, since an alternative would then be
          available for recovery and/or proper disposal.

     —  Prevent waste of a resource by recovering a
          product which has  reuse value.
                                     8

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     —  Reduce maintenance costs in sewers and municipal
          treatment plants incurred due to coating and fouling
          of equipment by the many, chronic, low volume spills
          of oily wastes to the waste collection system.

Subsequent to the publication of the report highlighting the waste oil
problem, and on the basis  of information contained in the report, the
Maryland Environmental Service undertook to develop a comprehensive
waste oil recovery and reuse system and engaged Environmental Quality
Systems, Inc. of Rockville, Maryland to prepare a design for the system,
including a preliminary design for a waste oil processing plant based
on existing technology which would process a maximum range of waste oil
types into the maximum quantity of reusable product, and dispose of the
remaining "non-recoverable" fraction such that minimum adverse environ-
mental impact would result.

During the course of the work, it was decided by the MES that the primary
products of the plant should be fuel oils.  This decision was based on
three considerations:

     1.   Fuel oil products production would alleviate the effect
         of expected shortages of these materials during the
         coming heating season;

     2.   The quantities of fuel oils produced by the reprocessing
         plant  could be directly utilized by State-owned and
         operated facilities, prisons, hospitals and others; and

     3.   Fuel oil production would eliminate the need for an
         extensive marketing program to sell the lubricating oil
         base stock or blended lubricating oil products.  (State
         requirements for lubricating oil products, i.e., State
         Roads Commission, Highway Patrol, and other vehicles
         would represent less than 5 percent of the total poten-
         tial plant production of such materials).

The development of the WORRP program elements and engineering design was
continually guided by several premises.  These are:

     1.   Collection, storage, processing and/or disposal of al1
         types of waste oils, including waste automotive lubri-
         cants, industrial waste oils, and others were required.
         This would ensure protection of water quality and pre-
         vention of pollution of watercourses within the State
         as a result of these materials.

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     2.  Production of the maximum quantity of fuel oil products
         from waste oils was required while maintaining the
         flexibility to convert to higher product quality pro-
         duction, i.e., lubricating oil base stocks, at a later
         date.  This would ensure immediate utilization of
         products as fuel oils during expected reduced supply
         periods while preserving the potential for recovery of
         increased revenues during future years.

     3.  Existing Federal and State water and air quality standards
         would be met.

     4.  The use of current state-of-the-art technology was required
         to ensure that the program could be implemented as rapidly
         as possible by the State of Maryland without awaiting
         results of ongoing research and development.

During the course of conduct of this work, a report was completed
entitled "Waste Oil Recovery and Reuse -- Summary of the State-of-the-
Art, 1972".  The report contains data and information related to waste
oil quantities in the State of Maryland and National estimates, pro-
perties of waste oils and recovered products, a survey of existing laws
and regulations for the control of handling and disposal of waste oils,
costs and operating data for unit processes available for processing
and disposal of oily wastes, and a review of waste oil transport systems.
This report was published by the EPA and is available through the Govern-
ment Printing Office.  The information collected during the search of
the technical literature, review of ongoing R&D projects, the patent
literature, and from existing waste oil rerefineries was used as the
basis for the development of the system design for the Maryland Environ-
mental Service.

The data and information resulting from the total project are voluminous,
To simplify the presentation of the material, the following format has
been selected:

     1.  The separate report "Waste Oil Recovery and Reuse —
         Summary of the State-of-the-Art, 1972", which is
         described above;

     2.  This Report, which summarizes the technical data and the
         various elements of the WORRP, with most of the tech-
         nical data, mathematical models, and results of
         analyses contained in several appendices;

     3.  The separate report entitled  "Preliminary  Design for
         a Waste Oil Recovery  and Disposal Facility,  1973",
         describes the basis of design, process  selection, and
         preliminary cost estimates for the process  trains
         selected;
                                      10

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     4.  Data resulting from the surveys» which is available
         in a computer printout format;

     5.  Information resulting from the sensitivity analyses
         of the collection system and program economics mathe-
         matical  models, which is available in a computer printout
         format,

Both the survey data and sensitivity analysis information are available
for review at the:

                    State of Maryland
                    Department of Natural Resources
                    Maryland Environmental Service
                    Tawes State Office Building
                    Annapolis, Maryland  21401
                                     11

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                               SECTION  III

                                 SUMMARY
THE PROBLEM
The total amount of waste oils produced in the State  of Maryland on  a
yearly basis is estimated to be distributed as follows:

        Waste Crankcase Oils 	 7   million gallons,  annually

        Waste Industrial Oils 	 5   million gallons,  annually
        Waste Oil from Over-the-
          Counter Sales 	 1

        Waste Variable Oils (Oil
          Spills, Septic Tanks,
          and Others) —		4
                                 million gallons, annually
                                 million gallons, annually
        Waste Other Oil (Industrial
          Solvents and Others) 	1.5 million  gallons,  annually
              Total Waste Oils 	 18.5 million gallons,  annually

These estimates are based on questionnaire,  survey and interview results
(See Section IV).

A problem does exist in the State of Maryland with regard to satisfactory
collection and disposal of waste oils.   Only about one-third to one-half
of the waste oil generated in the State is currently identified as being
collected by waste oil haulers.  The fate of this oil  is uncertain, but a
substantial fraction is probably being burned without processing to re-
move heavy metals as fuel within the State or in other states.  A signi-
ficant amount of the collected oil  is also being used for road oiling
purposes to control dust.  This oil creates  a water pollution problem
due to runoff.  The remaining one-half to two-thirds of the waste oil
generated and not identified as being collected by waste oil haulers is
being disposed of to the land and water resources of the State, or in-
cinerated as a waste.

The nature of the problem may be characterized as follows:
     a)  Improved collection
         to handle between 50
         currently generated
                     storage,  and handling  are  required
                     and 67 percent of the  waste  oil
                    - between  9 and 12 million  gallons
per year based on 1972 values  - which  are not collected
and which may be discharged to the environment.
                                     12

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     b)  Improved processing and disposal techniques are required
         for most of the waste oil currently generated - between
         9 and 17.5 million gallons, annually, based on 1972 values.

Most of the waste oil is generated by industrial, commercial and private
users of petroleum products in the Baltimore metropolitan area and in
the Baltimore-Washington, D.C. corridor, including Washington, D.C.
suburbs in Montgomery and Prince Georges County.  Significant amounts
are generated in other population centers within the State, including
Annapolis, Cumberland, Hagerstown, and Frederick.

Users of petroleum products generate a wide range of waste oils and
wastes containing oils which may be characterized as follows:

     —  Waste automotive and aeromotive crank case oils which
          accumulate at automobile service centers,  gas stations,
          bus and trucking centers,  and airports.

     —  Waste automotive crankcase oils which result from the
          do-it-yourself oil changes(represented by  the so-called
          over-the-counter oil sales).

     —  Waste industrial lubricants such as cutting oils,
          transformer coolants, equipment lubricants, and others.

     —  Oil-water mixtures resulting  from clean-up of spills
          of petroleum products.

     —  Variable waste oils resulting from septic  tank
          cleanouts and storage tank bottoms.

     —  Oily wastes,  largely from industrial  operations
          which contain solvents,  paints and other materials.

     —  Oily wastes containing  small  relative amounts of
          oil such as bilge and ballast water.   This latter
          is considered to be a problem specific to  harbor
          areas and is  not considered herein.
THE SOLUTION

The existing waste oil problem in the State of Maryland may be solved by
implementation of a phased program consisting of:

Phase  I  -  Implementation wi th Existing_ Resources
     Collection of all waste oil by existing collections
     augmented by additional resources, if required.
                                    13

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    a)   Management of existing waste oil collection services
         within the State and later extension of services to
         remote regions.

    b)   Establishment and management of storage areas at
         several locations throughout the State preferably
         by leasing existing storage capacity at tank farms.

    c)   Establishment  and management of a distribution
         system for the stored waste oil to:

         —  environmentally acceptable reuse purposes
              within the State,

         —  rerefining facilities in other States, and

         —  disposal at facilities which maintain
              appropriate water and air pollution control
              prevention equipment.


Phase  II  -  Permanent Installation

Following accumulation of experience,  identification of quantities, and
characterization of various  waste sources,  a permanent program can be
initiated that would mix available resources with new processing and dis-
posal facilities within the  State to maximize the quantity of waste oil
that can be reused.  This can be by a combination of private and State
investments or by one or the other, exclusively.

    a)   Design and  construction  of a module  of a  future waste
        oil recovery and disposal  facility of a size and nature
        to  process  the types  and quantities  of waste oils
        verified by the experience during Phase I.   Such a plant
        would  produce fuel oil  products  primarily.

    b)   At  a later  date expansion of the  processing  plant, if
        necessary,  to accommodate increases  in waste oil
        production  during future years,  and/or

    c)   At  a later  date to produce "higher"  reuse products such
        as  lubricating oil base  stocks,  if a suitable market for
        such products can be  demonstrated.


The alternatives for implementing the waste  oil program are presented in
Figure 1.  All of the alternatives except reprocessing for product recovery
are incomplete alternatives  in that they address parts of the total waste
oil problem, e.g.,  it is likely that only the high quality waste oils such
as waste crankcase  oils could be exported to an out-of-state user, or
                                     14

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   Figure 1.   SUMMARY OF WASTE OIL RECOVERY AND  REUSE PROGRAM OPTIONS
                   II
                                   in
                                                    IV
  DISPOSAL
     OF
  WASTE OILS
   WITHOUT
 REPROCESSING
                  MARKETING
                  FEEDSTOCK
             [DISPOSAL|
[COLLECTION]
|COLLECTION
[MONITORING
 COMPLIANCE
 MONITORING
              COMPLIANCE
                                                             DISPOSAL
                                                 [COLLECTION]
                                                  COLLECTION
                                                 MONITORING
                                                    J,
                                                 COMPLIANCE
                                                 I MONITORING]
                                                 ~~
                                                              (COMPLIANCE
Examples:
     Alternative I -- Use  of waste oils for  road oiling, mixing with
     refuse to obtain better burning characterisites.  Incineration
     of  non-useable waste  oils.

     Alternative II -- Export of recoverable waste oils to  existing
     re-refiners on a toll-fee basis with  recovery of an equivalent
     volume of re-refined  products.  Incineration of non-recoverable
     waste oils.

     Alternative III --  Diluting waste oils  with virgin oils  and the
     mixture used as a fuel  oil.   Incineration of non-useable waste
     oils.

     Alternative IV -- Re-refining waste  oils into fuel oil  and lube
     products.  Incineration of non-recoverable waste oils.

     Alternative V -- Pretreatment of waste  oils or  direct  dilution
     with crudes and subsequent refining  or  mixture  with residual
     oils for subsequent marketing.
                                     15

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burned as a fuel without reprocessing.   All  of the alternative imple-
mentation schemes will  require a compliance  plan (amended regulations)
and program management, a monitoring activity, a collection program
begun with existing waste oil  haulers,  and a partial  storage program
utilizing leased tank space where available.
WASTE OIL SOURCES

The origin of waste oils is refined petroleum products;  however,  a
small amount of animal  and vegetable waste oils may be included in the
total.  The total amount of waste oil generated in Maryland in 1972
was 5 million gallons of industrial lubricating oils and 7 million
gallons of automotive lubricants.  To these volumes must be added
1 million gallons of oil resulting from over-the-counter sales.

Additionally, there are about 4 million gallons of variable waste oil
and about 1.5 million gallons of "other" waste oil.  Variable waste oil
includes septic tank cleanouts, oil spills, service station tray  clean-
outs, and others.  "Other" waste oils include industrial solvents and
petrochemicals, waste edible oils, waste hydrocarbon process stocks,
recovered oil from sewage treatment plants, and miscellaneous waste
oils.

The annual growth rate in production of these waste oils is estimated
to be about 6 percent nationally.  On the average, about half of all
lubricant materials sold are for automotive use.

Nationally, about 2.3 billion gallons of petroleum lubricants are used
for industrial and automotive applications per annum.

Typical sources of waste oils include automotive service stations and
repair facilities, truck repair facilities and depots, aeromotive and
marine service facilities, and hundreds of different types of industrial
and commercial operations including those using rotary machinery and
those using oil directly as a lubricant during processing.

The use of these lubricating materials results in the production of
waste lubricant oils.  Similarly, in the handling of other oils,  such
as heating oils, there is a small fraction of the original material
which ends up as waste.  However, the predominant amount of waste
material occurs as a result of replacing used lubricating oils.  It is
estimated that of all automotive oils sold, approximately 43 percent
end up as waste oil.  In a similar fashion, industrial oils yield about
18 percent as waste oil which must be disposed of.  These values are
based on questionnaire results.

During the course of this study a questionnaire survey of sources of
waste oil throughout the State of Maryland was conducted.  The percen-
tage  returns of 41 percent and 24 percent respectively, for the crank-
case oil and industrial oil waste sources indicate the success of the
                                   16

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survey and the effectiveness of the questions posed.   This  resulted in
the availability of a very broad data base for these  two categories.
WASTE OIL CHARACTERISTICS

Waste oils constitute a valuable source of hydrocarbons  and have been
applied to a variety of uses ranging from road oiling without pro-
cessing to reuse as high quality lubricants after reprocessing.   The
conversion potential of waste oils to useful  products depends strongly
on a number of factors including physical and chemical characteristics.

Waste crankcase oils frequently contain about 5 percent  low boiling
material originating from the gasoline.  Additionally, because of the
lead used in gasoline as an anti-knock compound, automotive crankcase
oils contain a large amount of lead; up to about one percent by weight.
Frequently, 6 to 10 percent of solid materials, sediment, and water
are found in waste crankcase oils along with the additives originally
compounded into the oil.  Insoluble materials in waste crankcase oil
include carbon particles, dust, metal particles, metal oxides and
other materials.  All these contaminants interfere with  the use of
the spent lubricant for reuse as a lubricant and for other applications,
unless the waste oil is reprocessed.

Most waste industrial lubricants contain breakdown products resulting
from the use of the oil.  In addition, they may contain  contaminating
materials resulting from the mixing of other waste petroleum products
or water solvents, paints, and other materials with the  original waste
lubricant.  Since the virgin lubricant materials usually are compounded
with a variety of additives to improve their properties, the waste oils
are found to contain fractional concentrations of such additives.
Typical additive materials are:  zinc and barium compounds, amines,
phosphates, sulfonates, sulfides, phosphites, silicons,  calcium com-
pounds, polyacrylic polymers, isobutyline polymers, halogens, lead
compounds, fatty acids, and phenols.

The characteristics of waste oils are expected to undergo changes in
the future.  For example, automotive engine lubricants can be expected
to become richer in additives to improve their useful life.  As a
result, waste oils are expected to exhibit a commensurate increase in
additives.  Over the same period, the removal of lead from gasolines
(in accordance with air pollution control objectives established by
the Federal government) will result in less lead being found in used
crankcase oils.  Other metal-containing additives may replace lead-
based compounds.  In a similar fashion, some changes may be expected
in the composition of industrial lubricants with some additional empha-
sis being given to the introduction of longer-lasting synthetic
lubricants.  Detailed data and information related to characteristics
of waste oils and recovered products can be found in the separate
State-of-the-Art Report.
                                  17

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COLLECTION SYSTEM

The State of Maryland was divided into five primary regions -- north-
west, north, south, central, and eastern shore -- in order to perform
the collection system analysis.

Between 18 and 22 tank trucks of 2800-gallon capacity are required to
collect all categories of waste oils and deliver to a central storage
location.  An additional requirement of between one and three 6000-
gallon capacity tank trucks are required to move waste oil between the
intermediate storage locations (in all regions except that in which
the central storage facility is located) and a central storage location.
The cost for collection is about 3$ per gallon of waste oil delivered
to the central location.  The location of the central storage facility
may affect these collection costs by 15 to 20 percent.  However, un-
favorable management factors such as overhead, vehicle waiting time,
labor wage rates and others, may result in doubling costs.  The values
for system costs were developed using current rates for truck leasing.
However, utilization of existing tank truck haulers to implement the
program should be pursued.

With modifications, the collection network models developed may be
applied to other states or regional areas in the U.S. and may be used
as management assistance tools in the operation of a collection network.

Existing empty storage tank capacity is available and could fill the
immediate program needs.  However, the condition of the tanks and the
need for additional appurtenances will require evaluation of each site.
If the existing storage is adequate, a collection, storage, and reuse
program could be implemented immediately (Phase I).
PLANT DESIGN

The process train selected for producing fuel oil products from a wide
range of waste oil feedstocks includes chemical addition, settling,
flash distillation, adsorbent contacting, solvent extraction, filtra-
tion, solvent recovery, and incineration.  Preliminary designs and
cost estimates were prepared using early 1973 state-of-the-art tech-
nology for three plant capacities to take into account appropriate
program phasing:
                                            Estimated Capital
                     Capacity               	Cost	

            10 million gallons per year        $ 3.0 million
            22 million gallons per year        $ 5.7 million
            30 million gallons per year        $ 6.6 million
                                    18

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The cost for the 30 million-gallon-per-year plant was  determined by
scale-up of the preliminary cost estimate for the 22 million  gallon
facility.  Estimates for storage tank requirements are included.
About 13 acres of land are required for the 22 million gallon plant
including the storage facility.   The details of the preliminary
design are presented in a separate report, and a complete summary
is contained in Section VI of this report.
                                   19

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                           SECTION  IV

                        RESULTS OF SURVEYS

INTRODUCTION

Knowledge of the quantity and types of waste oils generated is a
necessary ingredient to the MES Waste Oil  Study since these factors
affect the size and design of a system for collection and reprocessing
waste oil and the economics associated with the system.   One of the
techniques employed by the MES Waste Oil Study to obtain such knowledge
was through direct survey of potential waste oil generators in Maryland.

The mail-out questionnaire was chosen as the information-gathering
vehicle for the MES Waste Oil Study Survey.  Data and information were
also obtained through personal contact, telephone calls, and other
types of inquiries.

All of the MES Waste Oil Study survey questionnaire forms were for-
warded under a covering letter from the Maryland Environmental Service.
The content of the questionnaires was subjected to a review process
including State and Federal officials.  In addition, pilot question-
naires were used to test the reactions of potential recipients before
the actual mail-out was performed.  The objective of the review and
test procedure was to develop questionnaires that would minimize the
possibility of misinterpretation.  The rate of response was consider-
ably higher than that normally encountered in this type of survey.

Two basic questionnaire forms were employed in the MES Waste Oil Study
survey.  One questionnaire form was intended for establishments that
generated only automotive waste oils.  This survey form was mailed
exclusively to establishments involved in retailing gasoline.  Another
questionnaire form was designed to cover a much wider field of waste
oil generators, and was mailed to other potential waste oil generators
including all Standard Industrial Code classifications except those
presented in Appendix A.  The crankcase oil and industrial oil
questionnaires can be found in Appendix H.  Appendix H also includes
a discussion of the process for arriving at the five major collection
and distribution regions presented in Figure 2.  These regions are
the basis for the Maryland waste oil collection network.  Figure 2
also shows three potential processing plant locations used as examples
to test the sensitivity of the model developed to analyze system
costs, which are discussed in a later section.
                                  20

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o
V-H
C3
LU
O
O
i-i     
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THE SURVEY OF CRANKCASE OIL SOURCES

Waste Oil Survey questionnaires were sent to all  establishments engaged
in retailing gasoline in the State of Maryland that were listed on the
rolls of the State's Motor Fuels Audit Division.   Some 4,007 question-
naires were mailed in the course of this part of the waste oil  survey.
This questionnaire was intended to capture information pertaining only
to automotive wastes since its recipients were all retailers of
gasoline, and therefore presumably engaged in servicing automotive
needs.

The responses to the automotive waste oil survey were tabulated for
each of the Master Zip Code Regions (See Figure  7 in Appendix H).
An example of the tabulations of the responses received is given in
Appendix I.  The Appendix also contains a detailed discussion of the
manner in which the questionnaire results were handled and complete
data and statistics for the State of Maryland.  In general, weighted
replies to each question were related to the total number of question-
naires mailed in each category.  Complete data and statistics for each
Master Zip Code Region for both the crankcase oil and industrial oil
surveys are not presented in this report because  of the volume con-
sideration.

Table 2. includes the data resulting from this survey and extrapolated
values for the entire state based on the number of replies received.
These data were used to verify estimates made earlier in the study.
Final design of the system should utilize these data.   Differences
between  these values and the estimates  used  in the preliminary design
are presented in Section VI.

                    Table 2.  STATE OF MARYLAND:
       SUMMARY OF AUTOMOTIVE WASTE OIL MAIL-OUT QUESTIONNAIRE
Questionnaires Sent:
4,077
 Percent
    Questionnaires Returned:
Returned:
1,675
F_£om_ques ti onnai re
Oil changes/mo
Oil sold gal. /mo (orig. stock usage)
Actual waste oil accum. gal. /mo
Waste oil picked up gal. /mo
Waste oil burned gal. /mo
storage capacity - gal.
average max. pickup frequency -
pickups/year
Number of
Replies
Received
1,429
1,393
1,360
935
1,407
1,351
876
Amounts
from Replies
Received
68,022
458,788
153,327
64,583
12,990
570,147
4,173
Totals*
Extrapolated
for Maryland
194,000
1,342,000
460,000
282,000
37,600
1,720,000
19,406
   *  Totals extrapolated for Maryland =  (4077 * No. of Replies'
      Received x Amounts from Replies Received).
                               22

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About 25 percent of the automotive waste oil generators in the State
are paying for collection services (See Table 3).   Most of those who
pay for the service pay 2<£ per gallon.  Some also  report payment plans
based on a fixed charge per month, fixed charge per "load", and other
mechanisms.  By far, however, the majority paid nothing at the time
of this survey

               Table  3.  FROM CRANKCASE OIL SURVEY:
                    COLLECTION COSTS REPORTED BY
                    RESPONDEES TO QUESTIONNAIRES
PAID by generator
$/gallon
0.12
0.10
0.08
0.06
0.05
0.04
0.03
0.025
0.02
0.015
0.01
0.005
ZERO
-0.01 (was paid)
-0.02 (was paid)
Total
No. of
replies
1
1
1
3
10
6
24
1
102
6
35
2
565
1
	 ]_
759
INDUSTRIAL OIL SURVEY

Because of the more varied and undetermined nature of the sources of
industrial waste oil, a different and more comprehensive questionnaire
form was used to survey this portion of the population of potential
waste oil generators.  This questionnaire was sent to all manufacturers
listed in the 1971-1972 Directory of Maryland Manufacturers who were
likely generators of waste oil.   Industrial Waste Oil Survey question-
naires were also sent to all employers listed on the rolls of the
Department of Employment and Social  Services of the State of Maryland
in all industries employing 10 or more persons, except those identified
by the Standard Industrial Classification codes listed in Appendix A.
                                  23

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In summary, questionnaires were sent to all  establishments  that were
thought to be significant generators of waste oil,  except retail
gas stations which were covered in the waste automotive oil  survey
described above.   This resulted in a mailing of some 6,952  Industrial
Waste Oil surveys, of which 1,635 were returned, for a response pro-
portion of 23.5 percent.   This response was  very good since the
population addressed was  far less homogeneous than  in the case of
the gasoline tax survey.

Although the tabular format for displaying the results of the in-
dustrial oil survey is the same as that used for the crankcase oil
survey, a different and more sophisticated statistical technique
called stratification was employed to produce these tabulations.
This was because the waste oil generation characteristics vary
markedly between different Standard Industrial Classification (SIC)
codes.  That is,  toy manufacturers generate  far different quantities
and types of waste oils than do, say, steel  manufacturers.   In such
a case, stratification of results by SIC codes leads to much more
accurate estimates of totals than do simple population treatment
techniques such as were used in the crankcase oil survey.

Techniques used for handling and summarizing the data from this
survey are presented in Appendix I, along with sample data.  Table 4
includes extrapolated values for each industrial waste oil  category.
The values were arrived at in a manner similar to that shown for
the automotive crankcase oil values in Table 2.

An estimated total of 1,480,000 gallons of waste mottr oil  per year
was uncovered in the industrial oil survey.   This comes mainly from
such sources as bus companies and manufacturing concerns with sizeable
transportation fleets that do not retail gasoline and were conse-
quently not covered in the crankcase oil survey.

Table 5 shows the total, combined industrial and crankcase oils as
determined by both surveys segregated by collection and distribution
regions.

Besides the data presented in Table 6 summarizing collection costs
on a dollar per gallon basis, industrial waste oil  generators re-
ported payment plans on the following bases:

          Collection basis     No. of replies       Reported range

             per load               36              $   5 -   35
             per month              10                  6-50
             per year               12                100 -  250
             per drum                6                  2-6

About half  of the industrial sources surveyed paid nothing for
collection  services.

Data  collected during this survey should be  used during the final
design  of the waste oil program  elements.

                               24

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             Table 4.   QUANTITIES BASED ON  SURVEY  RESULTS

                       - INDUSTRIAL WASTE OIL -
                   Questionnaires  Sent:       6,952
                   Questionnaires  Returned:   1,635
                   Percent Returned:          23.5%
                                             Totals*
           From Questionnaire _ Extrapolated for Maryland
                                               __
      Oil Consumed/Mo.**
      Gear and Transmission                 100,000
      Hydraulic Oils                         60,000
      Water Sol. Cutting                     20,000
      St. Cutting Oil                        75,000
      Turbine Oil                             1,800
      Motor Oil                             206,000
      Other                               1,750.000
     _ TOTAL ..... - ............ - 2,213,000

      Waste Oil Gen. /Mo.***
      Gear and Transmission                  72,500
      Hydraulic Oils                         25,000
      Water Sol. Cutting                     18,000
      St. Cutting Oil                        11,000
      Turbine Oil                             5,800
      Motor Oil                             123,000
      Other                                 287,000
     _ TOTAL ...... - .............. 542.000

      Waste Reused/Mo.
      Gear and Transmission                     350
      Hydraulic Oils                          1 ,100
      Water Sol . Cutting                         35
      St. Cutting Oil                        46,000
      Turbine Oil                             ----
      Motor Oil                                 350
      Other                                  11.000
     _ TOTAL ............. --------- 59.000

      Waste Pickup/Mo.                      480,000
      Waste Burned/Mo.                      114,000
      Storage Capacity                    1,020,000
      Re-Refined Oil Purchased/Mo.           11,000

      Maximum Pickups/Year                   14,000
  *  Obtained by multiplying the values received in the questionnaire
     by the ratio of 6,952 * No. of Replies Received.
 **  Equivalent to the additional virgin oil needed for makeup.
***  Equivalent to the amount drained and discarded.

                                  25

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        Table 5.  TOTAL ANNUAL VOLUME OF WASTE OIL



AS DETERMINED BY THE AUTOMOTIVE AND INDUSTRIAL OIL SURVEYS
Collection and
Distribution
Region
1 (Northwest)
2 (Central)
3 (North)
4 (South)
5 (Eastern Shore)
TOTAL
Total Volume of Automotive
and Industrial Waste Oil
Generated per Year
1,022,750
3,244,680
6,605,790
288,780
890,400
12,032,400
Percentage
of
Total
8.5
26.8
54.9
2.4
7.4
100.0
  Table 6.   FROM INDUSTRIAL OIL SURVEY COLLECTION COSTS



         REPORTED BY RESPONDEES TO QUESTIONNAIRES
Paid by Generator
($/Gallon)
0.06
0.05
0.04
0.03
0.025
0.02
0.015
0.01
ZERO
-0.025 (was paid)
-0.03 (were paid)
No. Of
Replies
6
15
10
13
5
25
4
4
147
1
2
TOTAL 232
                             26

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WASTE OIL FROM OVER-THE-COUNTER SALES

Five large chain merchandising operations with high motor oil over-the-
counter sales indicated that their organizations sold an estimated
3,855,250 gallons per year during 1972.  This value should account for
about 95 percent of such sales.  The five organizations sampled were:
Western Auto Supply Corporation; Sears, Roebuck and Company; Montgomery
Ward and Company; Dart Drug Corporation; and Drug Fair.

On the basis of the crankcase oil survey results, about one-third of the
lube oil sold for automotive purposes appears as waste oil.  In the case
of over-the-counter sales, however, this ratio is probably high since
over-the-counter sales represent a significant fraction of oil used for
grass-cutter and marine engines, and sales to owners of automobiles with
high oil replacement requirements.  Using these considerations, the waste
oil generated by over-the-counter purchasers is estimated to be 1,000,000
gallons.  As service stations are reluctant to accept this type of
drainage, it is speculated that do-it-yourself waste oil is disposed of
in garbage and refuse pickup or to sewers or land.


WASTE VARIABLE AND OTHER OILS

Interviews with the Metropolitan Sewer Cleaning and Pumping Association
of Washington, D.C. indicated additional potential  sources of waste oil
in the State of Maryland.  These sources account for about 200 million
gallons of wastewater handled by the Association, annually; tank clean-
outs (including waste fuel oils or tank bottoms), service station inter-
ceptors, etc., provide this type of oily wastewater.  The interviews
also indicated that approximately 2 percent of this liquid waste are
petroleum products which are currently disposed of with the water.  There-
fore, the oily wastewaters being handled by the Association will eventually
provide an additional 4 million gallons of waste oil for the WORRP facility,
assuming strict enforcement of water pollution control regulations.  This
waste oil estimate was, therefore, included in the system design basis.

The category "Other Waste Oils" includes waste edible oils, waste
industrial solvents and sewage treatment plant waste oils.  Since the
waste oil surveys did not provide information on these materials, the
quantity was estimated to be 10 percent of the total volume of crankcase,
industrial and variable waste oils.
MARKET SURVEY

Other sections of this report indicate the various types of petroleum
products which can be produced through re-refining.  Among the most
straightforward to produce are the neavier grade fuel oils:  Numbers 4,
5, and 6.  Since these particular products will be cost-effectively
produced, a market survey was performed to determine the number of gallons
of residual fuel oils used within the State of Maryland during 1972.
                                   27

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Actual consumption data was sought and trends for future years were
determined.  Data are presented for all users within the State who
use over 700,000 gallons of #4, #5, or #6 fuel oil, per year.  More
detailed analyses were performed for all State agencies.  Major fuel
oil distributors were questioned to determine their percentage share
of the total market.  The results of these activities are presented in
this subsection.

Market Size

The total market for fuel oil types #4, #5, and #6 in 1972 exceeded
2 billion gallons.  This total consumption figure was obtained from
the State of Maryland Department of Health and Mental Hygiene, Bureau
of Air Quality Control.  The Bureau data derives from a census of all
industrial and institutional installations within the State of Maryland.
Each installation is examined with regard to air pollution it generates
during its normal operations.  The Bureau produces a listing of all
installations which release more than 25 tons of particulate matter into
the atmosphere yearly.  A separate indication is made for three categories
of activity:  processing, fuel burning, and incineration.  The listing
indicates fuels used.  Burning about 700,000 gallons of #4, #5, or #6
fuel oil (or burning other amounts of different kinds of oils or natural
gasses) will release 25 tons of particulate matter.  Thus, any installa-
tion which burns only fuel oil is listed only when the total amount
burned exceeds 700,000 gallons; installations which burn other types of
fuels in conjunction with fuel oils will be listed if the total particu-
late matter discharged into the air exceeds the 25-ton limit.

The total market derived from the Bureau of Air Quality Control statistics
is summarized in Table 7, distributed by County, indicating Baltimore
City separately.  Some major State and Federal and local governmental
users requirements are included in these totals.

Since'not all of the State agencies who use residual fuel oils are
listed in Table 7, the total specific requirements of State government
users were treated separately.

The General Services Administration of the State of Maryland was queried.
This agency procures almost all petroleum products used by State agencies.
Once each year, the Agency promulgates a consolidated bidding list
indicating all fuel oil required by State institutions.  Responses to
the bid  list provide an overview of the State's internal market, including
prices paid for each fuel grade, and turnover (how many times each tank
must be  filled).  Table 8 indicates the total State of Maryland usage by
fuel oil type, the number of users of that type, the quantity used during
1972, the turnover, and the average price per gallon.

To obtain some idea of the variation in price paid as related to the total
numbers  of gallons used and the location within the State, agencies
using #5 and #6 fuel oils were examined in detail and listed by Zip Code
and by Grade Used.  The total of all State agencies was processed  to
produce  a complete listing for use by the Maryland Environmental Service.
A summary of that listing is presented in Table 9.


                                    28

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    Table 7.  1972 CONSUMPTION OF

NUMBERS 4, 5, and 6 FUEL OILS BY COUNTY
 County	Use in Gallons
Allegany
Anne Arundel
Baltimore
Calvert
Caroline
Carroll
Cecil
Charles
Dorchester
Frederick
Garrett
Harford
Howard
Kent
Montgomery
Prince Georges
Queen Anne
St. Mary's
Somerset
Talbot
Washington
Wicomico
Worcester
Baltimore City
30,360,000
169,400,000
461,260,000
605,000,000
1,340,000
42,580,000
4,000,000
282,900,000
78,770,000
8,300,000
40,000
7,320,000
4,240,000
2,900,000
33,760,000
44,170,000
220,000
7,360,000
1,160,000
1,740,000
5,910,000
11,620,000
3,450,000
277,280,000
          TOTAL        2,085,070,000
Source:  State of Maryland, Department of Health
         and Mental  Hygiene, Bureau of Air Quality
         Control.
                    29

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Table 9.  STATE OF MARYLAND USERS BY INDIVIDUAL ZIP CODES & PRICES PAID
11? CODE

20686
20907
21208
21740
21801
21856
TOTAL

20715
20740
20780
20794
21112
21228
21233
21613
21784
TOTAL
GALLONS USED
TURNOVER*
PRICE ($/gal)
Grade #5 Fuel
150,000
35,000
95,000
30,000
90,000
55,000
455,000 av
6
2
12
3
4
7
6.5 av.
.1193
.1054
.1022
.1104
.1704
.1204
.1239 av.
Grade #6 Fuel
720,000
1,610,000
220,000
2,225,000
550,000
3,000,000
1,383,000
600*000
4,100,000
14,358,000 av
24
11.5
10
57
17
15
28
20
8
21 av.
.0972
.0978
.0978
.0942
.0951
.0937
.0937
.1846
.0966
.1033 av.
       *  Number of times the tanks must be filled each year.
          Source:  State of Maryland, General Services Administra-
                   tion, Scheduled Procurement Listing.
                                    31

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A complete listing of all  State of Maryland users of fuel oil  was com-
piled.  These two listings serve to indicate a quite complete  list of all
potential customers for residual fuels.  The two listings produce an
apparent market in excess  of 2,100,000,000 gallons, annually (primarily
of Grade 6 fuel oil).

The market for residual fuels appears likely to expand within  the State
for two reasons:

     1.   There is a shortage of Type 2 fuel oil at this time.
          Therefore, the Department of Health and Mental Hygiene
          anticipates a switch from Grade 2 to Grade 6 fuel oils
          on the part of industrial users.  Type 6 oil can be
          burned with appropriate air pollution controls and will
          produce emission levels which meet the State standards,
          provided that the new State requirements of 1/2 percent
          sulfur content for Grades 4, 5, and 6 oils are met.

     2.   The Department of Health and Mental Hygiene has been
          reviewing the status of those sources which now burn
          coal for industrial processes.  It plans to order many
          coal burning operations to convert to oil burning.
          Normally, this would have caused conversion to Grade 2
          fuel burning capability.  But it appears likely that
          conversion to Grade 6 or other residual fuel usage will
          occur instead.

Thus, to the current market of about 2 billion gallons, will be added a
potential market of some 500,000,000 or so gallons by 1975.

It is contemplated that some of the total re-refining capacity will be
used for production of lubricating oil from waste oils.  Accordingly,
this market should not be overlooked.

It appears that the total  1972 sales of motor oil in the State of Maryland
was in excess of 20 million gallons, on the basis of questionnaire data
and over-the-counter sales.

The State Highway Department has been reported to use about 40,000 gallons
per year of auto lubes.  The State Police consume about 19,000 gallons
per year.  Montgomery County reports using about 18,000 gallons per year.
Other government organizations using significant amounts of auto lubes
are:  Maryland National Park and Planning Commission, Uashington Suburban
Sanitary Commission,  Montgomery and other County Boards of Education,
State Road Commission and others.  But it is clear that the State's share
of the total market is likely to be less than 10 percent of the total of
20 million gallons, considering its vehicular ownership.

Thus, some small quantities of re-cycled motor oil produced as a by-
product of the refining processes might be used by the States' own vehicles.
                                    32

-------
Any attempt to recycle the total amount of waste lube oil available
from a lube reprocessing facility would result in a requirement to sell
a significant fraction in the open market.


DISTRIBUTION SYSTEM SURVEY

The current oil distribution pattern within the State is rather complex.
The Maryland Petroleum Institute provided a listing of 17 major oil
companies which, it was thought, supplied the bulk of residual fuels
burned within the State.  Each of these organizations was asked to
supply a rough estimate of the total gallonage of Types 4, 5, and 6
residual fuels they sold within the State for 1972.  Quantities which
could be aggregated from these reports fell far short of the totals
indicated by the Department of Health and Mental Hygiene, Bureau of
Air Quality Control.  Apparently, the differences were made up by a
large number of more localized distributors who deal with a less than
State-wide market.  Contacts with the Oil Heat Dealers of Maryland, and
the Maryland Oil Jobbers Council, failed to produce a reasonable gallonage
reconciliation with the data provided by the Bureau of Air Quality Control.

Insofar as can be verified, approximately 10 to 15 distributors (in
addition to the major oil companies) sell directly to customers within
the State.  The residual fuels enter the State by pipeline (Colonial
and Plantation, an EXXON subsidiary) by barges, and, to a limited extent,
by tanker (Steuart Petroleum).  The products come from Philadelphia or
Wilmington or even from North Carolina and are thus credited as sales
to a distribution point not within the State of Maryland.

Inability to detail a distribution network with approximate gallons of
sales in each branch leads to examination of the gross market and the
analysis of a State re-refinery product distribution plan based on local,
municipal and State users.

The size and location of sources of waste oil to be used as feed to the
MES-WORRP plant determine, to a large extent, the location of the pro-
cessing facility.  It appears that by far the largest component of waste
oil is created by the automotive activity within the State.  It also
appears from automobile and truck registration data that about 2 million
gallons of waste lube oil are produced within the Baltimore metropolitan
area, about 2 million gallons within the Washington metropolitan area,
about 2 million gallons in the Frederick-Hagerstown-Cumberland region,
and 1 million gallons in the rest of the State.  Thus, the total waste
production from automotive sources approximates 7 million gallons.

The other significant impact on the location of a reprocessing plant is
the proximity of the market.

If the City of Baltimore consumption of #4, #5 and #6 fuels is considered
by itself, it is clear that all of the total product of the re-refinery
can be distributed within that restricted geography — perhaps even to a_
single user.
                                     33

-------
In the marketing of re-refined lubricants, the buyer has traditionally
enjoyed a price advantage due to the lower sales price usually associated
with re-refined oil products.  However, this price spread is strongly
dependent on specific marketing conditions, the client, his purchasing
power and practices, special  requirements of the client, delivery
schedules and similar factors.  Table 10 illustrates some of the differ-
ences found in marketing of lubes.


       Table 10.   VARIATIONS  IN THE MARKETING OF AUTOMOTIVE LUBES


Lube
Designation
10W-40
M330Diesel
SAE30 Hydraulic
oil
20W-40

Customer
"A"
[tf/gal .
96.8
-
M

-

Customer
11 B"
for Virgin
124
-
^

69

Customer
"C"
Products]
69
57
35

-
Typical re-
refined commercial
oil price schedule
[tf/gal.] *
95
89
65

-
 The  span  of  prices  noted  in Table  10  indicates that re-refined products
 could  compete  in  the market place, providing product acceptability is
 established.

 From this point of  view,  distribution  networks for products appear to be
 of quite  limited  interest, and  the re-refinery location should be chosen
 to minimize  collection  costs  and re-refinery economics.


 TANKAGE SURVEY
 Existing storage  tankage  not  in  use  because  of  changes  in  business climate,
 new requirements  or  other factors  represent  surplus  capacity which could
 be used within  the collection network.   A  partial  list  of  such  facilities
 is shown below  in Table 11.
 Some of these facilities  may  require  retro-fitting  with  dike  aprons,  inter-
 ceptors and other devices to  make  them conform to  new State pollution
 control regulations.   An  evaluation of requirements for  modification  should
 be made during implementation of Phase I.
                                      34

-------
  Table 11.  SURPLUS TANKAGE IN THE STATE OF MARYLAND
Location
Cumberland
Crisfield
Gambrills
Pcocmoke City
Frederick
Baltimore City
Number of
Tanks
5
Unknown
2
2
1
5 or 6
Total Volume
(Gals.)
100,000
80 ,000
40 ,000
40,000
60,000
15,000,000

Proprietorship
Data
Old Exxon bulk plant
Tawes Bros. , an
Exxon bulk plant
Unknown
Unknown
Blue Ridge Oil Co. ,
F. Higganbotham
Formerly Gulf Oil Co. ,
now under option
Total Available Storage   15,320,000
                         35

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                               SECTION  V

             WASTE OIL COLLECTION AND DISTRIBUTION NETWORK

After having divided the State into master zip code areas and then into
the five control regions:  Northwest, North, South, Central, and Eastern
Shore (Figure 2), the PIP and PUP models were applied to the entire State
to evolve alternative collection systems and their attendant costs.

The PickUp to Plant (PUP) system employs local collection vehicles which
are to pick up waste oil from the sources and deliver it to the repro-
cessing plant.  The basic PUP collection vehicle is a 2,800-gallon tank
truck.  This size truck is in common use for collection of waste materials
from local sources and has the advantage of being able to easily maneuver
in and out of small parking lots such as those encountered in service
stations, and it is relatively easy to handle in congested traffic.

The FMckup to Intermediate Storage to Plant (PIP) system utilizes 2,800-
gallon capacity vehicles for local collection of waste oil within pre-
determined geographical regions and delivering of the waste to intermediate
storage tanks located within the region or in another region.  Six-thousand-
gallon long haul tractor-trailer combinations, with extra trailers to
maximize their utilization, would be used to deliver the oil from the
intermediate storage sites to the plant.

Both the collection and distribution models are presented in Appendix J.
Both collection models were run for all five regions with the following
sets of parameter variations:

     1.  Three different plant locations:  these locations were
         at Baltimore (Foreman's Corner on the western shore
         of the Chesapeake Bay), Waldorf, Maryland and Columbia,
         Maryland.  The sites at Waldorf and Columbia were
         chosen, not because they represent actual potential site
         locations, but in order to disturb the model sufficiently
         to determine the sensitivity to cost of wide variations
         in plant locations.  The regional names, location
         coordinates and distances to the three plant locations
         are presented in Appendix 0.  The location coordinates
         used are those from standard U. S. Geological Survey
         100,000-foot grid coordinates.

     2.  Three plant capacity values were chosen, namely, 18
         million, 19.8 million and 22 million gallons per year
         distributed around the nominal 20 million-gallon-per-year
         plant size.
                                    36

-------
     3.  Three sets of numerical parameters for both PIP and PUP
         were chosen to represent the expected "Best", "Worst" and
         "Good" values for running the models.  These ranges are
         expected to represent actual ranges in practice as the
         collection system is operated throughout the State.  The
         numerical parameters for the PUP system are presented in
         Appendix J.  Those numerical parameters chosen to repre-
         sent the same spread for the PIP system are also presented
         in Appendix J.

As might be expected, the bulk of waste oil is generated in Region 2,
which encompasses the Washington metropolitan area, and Region 3,
which includes Baltimore.  The density of waste oil sources in Region
4 is low and it should be serviced by vehicles based in Region 2.
Region 5, Maryland's Eastern Shore region, also has comparatively low
concentrations of waste oil sources but is treated separately because
of its geographical isolation.


In applying the PIP and PUP models to the MES waste oil system, it was
assumed that all collection and hauling vehicles were leased rather than
purchased.  This assumption does not change the basic form of the model.
The cost of a vehicle is still represented as a fixed cost depending
on vehicle type and a variable cost which depends both on vehicle type
and use mileage.  The leasing assumption results in no capital invest-
ment cost and a somewhat higher fixed charge than would be the case
with owned vehicles.  Although the impact on overall cost is minimal,
the collection models can be run using typical cost value figures for
owned vehicles.

All results obtained by running the PIP and PUP models are summarized
in the  20 tables of data in Appendix E.  Tables  46 through   55
are PUP results, and Tables   56 through  65 are PIP results.  The
runs illustrated that the most economic situation was had by using a
PIP-type system in all the regions except that region in which the
plant was located.  In other words, it is likely that intermediate
storage tanks and long-haul trucks would be used for the four regions
removed from the plant location, and the PUP system was most economical
for the region in which the plant was located by the model.  To summarize,
for the case of the plant location at Baltimore (Foreman's Corner), the
PUP system should be used to collect waste oils in Region 3, while PIP
should be used for Regions 1, 2, 4 and 5.  Similarly, the same holds
for the Waldorf (Southern) and the Columbia (Central) Region locations.

A review of the data presented in Table 12 will reveal that the cost per
gallon for waste oil collection and delivery ranges from somewhat over
H to 7
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review of the numerical parameters used for PIP and PUP.  The values
chosen for overhead, routing factors, the equipment utilization factor,
and labor rates significantly affect the overall cost of the system
operation.  Waiting times for the trucks and drivers, both in the
regions and at the plant, and the average speeds attainable by the indi-
vidual vehicles also significantly affect the costs.  It should be noted
that leasing was assumed as the most viable alternative for the vehicles.
Therefore, the only capital cost incurred for the collection system is
the installation of intermediate storage tanks, assuming a central storage
facility is available.

It is useful to compare the PIP and PUP output on a region-by-region basis.
This has been done and the results are included in Table 12.  The results
for each region for PUP were compared to three results for each region
for PIP.  The best (most cost effective) was chosen for each region and
the regions were summed for both cost and number of vehicles required to
obtain a horizontal entry in Table 12.  There are a total of 27 such possi-
bilities.  Those presented in Table 12 represent a wide range of unit
collection costs, the range of parameters for both the Baltimore and
Waldorf locations, and the three plant locations at the three different
volumes.  It can be seen that the effect of plant location is not as great
as the effect of management of the collection system.

The network models presented herein are applicable to any state or any
region in the United States.  It would only be necessary to re-define the
geographic areas and re-state the numerical parameters to apply the system
anywhere.  As a matter of fact, its full potential would be utilized more
effectively in an application of wider geographic scope.  Additionally,
the distribution network to a very large number of potential customers can
be expanded quite readily in a similar fashion as that presented for the
PIP and PUP descriptions.

The models can also be used effectively as a management assistance tool
in the operation of a collection network by the addition of a real-time
segment to handle a dispatching system.  In this application, the models
will continually update the projected costs, on an hourly basis if
necessary, for use as input in the decision-making process.

The numerical results of the PIP and PUP analyses were reviewed and uti-
lized in the cost expansions of the overall system economic model.

The existing 171 collectors that have been identified as operating in the
State of Maryland, and perhaps others, could form the basis for a collection
system which could be initiated in the very near future.

Pipelining and barging alternatives were compared to the over-the-road
costs of the PUP and PIP systems.   Pipelining is a substitute for the
long-haul tractor-trailer combination of the PIP system.  However, at the
volumes and distances involved, pipelining is not competitive with over-
the-road hauling.
                                   39

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Barging can also be considered as a substitute for the long haul  tractor-
trailers between the Eastern Shore Region of Maryland and a reprocessing
plant located in the Baltimore Harbor area, for example.   Barging is
economically attractive when compared to over-the-road hauling, if the
volumes are commensurate with barge sizes and storage resources.

Optimum barging costs are estimated to be approximately l/2<£ per gallon,
excluding demurrage, compared to It to 4tf per gallon for truck hauling.
However, standard barge sizes are 840,000 and 1,750,000 gallons.   Con-
sequently, approximately one barge-trip per year will satisfy the current
and near future waste oil volumes.  This situation requires extensive
storage facilities on the Eastern Shore or the purchase of a barge with
a commensurate increase in storage at the plant to accept this large slug
load.  Accordingly, the capital investment for either a barge or additional
storage facilities is not warranted at this time.  If the volume of waste
oil from this Region approaches 2,000,000 to 2,500,000 gallons per year,
barging should be thoroughly investigated.
                                     40

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                               SECTION  VI

                       PRELIMINARY DESIGN SUMMARY*

 INTRODUCTION

 Based primarily on the Waste Oil Recovery Practives State-of-the-Art
 Report  (1972) submitted after the first six months of this project, a
 detailed preliminary design was developed for a comprehensive waste oil
 processing facility.  This facility is to provide disposal services for
 all waste oils generated in the State of Maryland.  Extensive process
 literature surveys plus communications with existing re-refiners and
 equipment suppliers provided the technical base for the actual process
 design work.  The complete Preliminary Design Report from which the
 summary presented here has been abstracted is presented under separate
 cover.

 In contrast to existing re-refinery operations, the proposed facility
 is not limited to processing a carefully selected quality of waste oils
 to produce a lubricating oil which provides the highest value product.
 The State of Maryland considered the waste oil recovery and reuse pro-
 gram as a mechanism to clean up pollution from this source and to
 provide a product that could be utilized, if possible, by governmental
 agencies.  Accordingly, all sources of waste oil would be collected
 and treated or disposed of.  In addition, the State of Maryland pre-
 ferred not to have to market products, which would be the case if
 non-fuel oil products were considered.

 Furthermore, Maryland need not consider the operation of this system
 to obtain the maximum profit.  Unlike private industry, a small profit,
 a breakeven, or even a loss could be justified on the basis of the
 overall benefit to the residents, waste oil producing industries,
 environment, energy needs, resource conservation, pollution control,
 etc.  Though elements of the program could be performed by private
 industry, the scope and management of the total program were, for
 this project, deemed best to be under the control of MES.

It is  recognized that other overriding conditions could produce other
combinations  of collection, process,  product,  and disposal  requirements.
However, for MES,  the following  design needs were considered:

     1.    Treatment or disposal  of  all types of waste  oils  that are
          collected within the State  of Maryland.

     2.    Predominantly,  production of fuel  oil  with some production
          of lube oil.   The products  to be used by Maryland State
          agencies.
*"*The Plant design is completely described in a separate report
    entitled "Preliminary Design Report for a  Waste Oil Recovery and
    Reuse Processing Plant, 1973."
                                   41

-------
      3.   The total waste oil recovery and reuse system need not
           produce a profit.

      4.   Compliance with all current and projected State and
           Federal environmental standards.

      5.   Use of existing state-of-the-art technology.
Since the results of the waste oil  surveys (See Section IV)  were not
available during the early course of the preliminary design  work, feed-
stock waste oil  quantities and quality for the"processing facility had
to be estimated from other sources.   Table 13 presents  the quantities
which were used, as well as analagous quantities from the waste oil  survey.
These values have been projected to 1975 for design purpdses and refer to
very broad waste oil categories.  Although the gross quantities of oil
according to the two sets of data agree very well, this must be fortuitous
since the individual quantities vary significantly (especially for the
waste industrial oils).   As noted on the table, preliminary estimates are
that 5 million of the 22 million gallons generated will be non-recoverable,
that is, will require incineration or disposal by other than reprocessing.
Gross waste oil  quantities are not suitable for preliminary design
purposes.  Therefore, a more detailed breakdown was developed which
delineates types and quantities of waste oils.  This is presented in
Table 14.  The term "variable waste oils" refers to those oils which
waste oils haulers presently collect on a highly irregular basis.  The
breakdown into waste crankcase, fuel and industrial oil subcategories is
for preliminary design purposes only and was determined based on sub-
jective impressions due to actual haulers.  Other waste oil  sources
were known to exist (due primarily to the state-of-the-art review).
Such a category was included for preliminary design purposes at 10 percent
of the total quantity of crankcase, industrial, and variable waste oils;
again, the subcategorical breakdowns are for preliminary design purposes.

Using the general design criteria and waste oil generation estimates
presented above, an actual processing facility was specified and subjected
to a preliminary design analysis.  The following report subsections out-
line the rationale for such a facility as well as present summary equip-
ment listings and cost estimates.  These data are used in the overall
economic analysis of Section VIII of this Report.


PROCESS SELECTION

Plant design and the specification of unit operations depend critically
on the expected flow(s) for the process in question and the stipulation
to produce, principally, fuel oil.  Traditionally, in the petro-chemical-
process industries, economic and marketing factors serve to delineate
(within relatively narrow boundaries) a "desirable" plant capacity; the
plant is then designed using this capacity or throughput as a basis.
Unfortunately, such an approach is not directly applicable to the
comprehensive re-refining of waste oils on a State-wide basis.
                                    42

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                Table 14.   1975  PROJECTED  WASTE  OILS
                                      Annual                Stream
          Category                   Quantity             Day Flow *
	(gal)	(gal)
Waste Crankcase Oils	11.1   x  106	33,300
Waste Industrial Oils	   4.9  x  106	14,700
Variable Waste Oils:**
     Crankcase		   1.0  x  106	3,000
     Fuel	   2.0  x  106	6,000
     Industrial	   1.0  x  106	3,000

Other Waste Oils:***
     Industrial	   1.0  x  106	3,000
     Edible	   0.5  x  106	1,500
     Miscellaneous --	   0.5  x  106	1,500
                   TOTAL	22.0  x  106	66,000
    *  Based on 330 stream-days per year.
   **  Total based on private communication with Metropolitan  Sewer
       Cleaning and Pumping Association,  Washington,  D.C.   Break-
       down estimate based on possible source information.
  ***  Estimated at about 10% of the above waste oils in total;
       breakdown estimate again based on  possible source informa-
       tion.
                                  44

-------
A major portion of the study, which is the subject of this Report, was
devoted to characterization of the waste oils generated in the State of
Maryland.  However, the preliminary design of this section necessarily
had to take place in parallel with the waste oil generation studies.
Waste oil generation and characterization data was, therefore, assumed for
design purposes, and later verified.   These estimates related primarily
to:

     1.    The gross amount of waste oil generated annually
          in the State of Maryland;

     2.    The general  physical-chemical characteristics of
          waste oils;

     3.    Expected variations in waste oil  as received at the
          plant or in  demand for products due to seasonal  or
          other factors;

     4.    Processability of the various types of waste oils; and

     5.    Contaminants in the waste oils as related to process
          plant pollution control activities.

Some of the points above would be put in much better perspective by
actually operating the storage-collection phase of the program, and
subsequently, a reduced-scale reprocessing facility.   Results inconsistent
with the assumptions and estimates used in the preliminary design will
be reconsidered in the final design.   This will consist of adjusting
the design to more realistic flow and processing estimates.

Point #4, above, must  be amplified considerably before a final plant
design is attempted.  The preliminary design as presented involves a
number of assumptions  relating to waste oil processability.  Although
the best available data on waste oil  re-refining has been used in
estimating process and unit operation performance, actual  sampling and
benchwork characterization, and process testing are required to provide
a more secure base for final design.   Techniques must also be developed
to permit process adjustment on seasonal and year-to-year bases;  this
is primarily a matter  of routine process testing.

Point #5 (pollution control activities) is a matter of availability of
technical solutions and legal requirements.  Although there is still some
doubt, in a technical  sense, that unprocessable waste oils and process
residues can be disposed in an ultimate, acceptable fashion, the
preliminary design presented here considers ultimate waste disposal by
isolation, concentration, and reduction of basic wastes to levels suitable
for land disposal or recovery of metals by others.

Before the ultimate disposal processes are the subject of final design,
two basic actions should take place:   1) further study of ultimate
disposal alternatives  in terms of both feasibility and potential
conformance to pollution control requirements and 2) perhaps more
                                    45

-------
importantly, detailed and exact delineation of the pollution control
requirements which will apply to the entire process plant.  The latter
must be part of the full-scale final design.

The preceding paragraphs do not  imply that additional  studies  on
processability and ultimate disposal will  lead to as  secure design data
as that often used in the chemical  process industries.   Since  feedstock
characteristics cannot be specified for a  comprehensive waste  oil  disposal
facility as they can and are for both chemical process  plants  and
existing waste oil refineries, extensive actual  experience provides
the only definitive means to determine both the  quality and quantity of
waste oil in the State of Maryland.  Data  from actual  operations can
serve as base for modification of both operations and hardware at  an
existing waste disposal facility.   Of course, similar data will  be
gathered by instituting a waste oil collection and holding system  with-
out an actual processing capability;  such an approach will be more
realistic than results obtained only through surveys  and sampling/
analysis programs.

The existing waste oil re-refining literature, present re-refining
practices, and ongoing research and development provided a host of unit
processes with potential for the MES waste oil recovery facility.   How-
ever, many process approaches were considered only briefly because they
were speculative and could not be implemented quickly, i.e., on the
order of a year.  Those processes which were deemed potentially useful
are presented in Table 15.  The basic function of each process is  briefly
described and the "product" oil resulting from each is delineated.  Note
that these unit processes aim at recovery, not ultimate disposal which
will be considered later in this section.   Unit operations were included
in the tabulation based on general applicability to re-refining as well
as knowledge of some working experience.

A number of these particular unit processes must be combined into
appropriate process trains to yield a technique(s) which will  allow the
recovery of product from waste oils.  Not all the unit processes need
be included in a given process plant since some perform similar functions.

Selection of a particular approach must be based on the principle of
"best practice" which, in turn, must consider:

     1)  Necessity -- If there is no viable alternative
         to a particular unit process, it  must be included
         in a re-refining scheme.   Of the  unit processes
         being considered here,  only flash distillation
         and filtration are in essence necessary.  Each
         other can, in principle, be replaced by an alternate
         unit process.

     2)  Proven Performance -- Certain of the unit processes
         have been amply demonstrated in actual  re-refining
         operations, and this was considered to be a  positive
         attribute.  Settling, flash distillation, sulfuric
         acid treatment, solvent extraction, adsorbent
                                    46

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    treatment,  fractionation  and  filtration  possess
    this  attribute  in  a  general sense.

3)  Capital  Cost -- Low initial  investment is desirable
    for any unit process.   For example, settling,
    stripping,  chemical  treatment, sulfuric acid
    treatment,  solvent extraction and adsorbent
    treatment involve lower capital  cost than
    distillation.

4)  Operating Costs -- Low operating costs are also
    to be desired.   Settling, flash  distillation,
    chemical treatment,  sulfuric  acid treatment,
    fractionation,  solvent extraction and adsorbent
    treatment were  compared in this  regard.

5)  Commerci a 1  Avai1 abi1ity -- Equipment and techniques
    should preferably be available commercially (off-the-
    shelf) in order to facilitate rapid implementation
    of a waste oil  re-refining program.  Special
    fabrication of  process equipment can be expensive
    and time-consuming.   Of the unit processes
    considered, only hydrofining  has no commercial
    source with regard to re-refining waste oils.

6)  Process Yield -- Large quantities of wastes or
    residue from a  unit process are  undesirable.
    Only sulfuric acid treatment, filtration and
    vacuum distillation present significant
    difficulties in this regard.

7)  Product Purity  -- Considered  in  and of itself,  a
    unit process should potentially  yield a product
    which requires  little or no further treatment.
    In a general sense, settling  and flash distillation
    cannot usually  meet this criteria, while centri-
    fugation and chemical  treatment  are somewhat
    unreliable  (i.e., may or may not be adjustable to
    give a relatively pure product depending on a
    number of critical variables).

8)  W i de App1i c a b i1i ty -- Capability of re-refining
    many types  of waste oils is a desirable quality
    for not only a comprehensive treatment facility
    but also individual unit processes.  Centrifugation,
    sulfuric acid treatment, vacuum distillation and
    hydrofining are generally highly specific in their
    ability to  successfully process waste oils and,
    therefore,  are deficient with regard to the
    criteria of wide application.
                              48

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     9.    Energy Requirements -- All  other factors  being
          equal, a unit operation should require a  low
          power input.   In a general  sense, this is nothing
          more than a requirement for a minimum energy
          demand by a facility.

Each of the above criteria plus  more  specific technical  considerations
were applied to each of the unit operations.   A detailed summary of
these evaluations is presented as Appendix D of this Report.   Ratings
of all the unit operations based on the evaluations led  to the selection
of the following for inclusion in the preliminary design of an MES waste
oil processing facility:

     1)  Chemical Treatment

     2)  Settling

     3)  Flash Distillation

     4)  Adsorbent Treatment

     5)  Solvent Extraction

     6)  Filtration

Chemical treatment is presently under development and being used in a
limited way;  minimal effort should be required, with the assistance of
chemical process research laboratories, in providing a treatment scheme(s)
with direct application to a range of waste oils.   Settling, stripping,
and filtration are almost immediately applicable for use on any waste
oil since they are state-of-the-art techniques across the existing re-
refining industry.  Adsorbent treatment is of a similar nature as long
as clay is the adsorbent material;  due to problems with ultimate disposal
and regeneration of spent clay, other adsorbents (e.g.,  activated carbon)
should be looked at carefully before  a final  design is committed
irrevocably to its use.  Clay which has been used for polishing an oil
and subsequently fired to remove hydrocarbons is, however, generally
amenable to successful  storage and/or reuse.   Of the unit processes
selected, solvent extraction is certainly the most speculative.  However,
solvents like pentane and naphtha are used routinely in  waste oil laboratory
analyses for insolubles, and propane  is being used in full-scale operations.
Therefore, at least for the production of fuel oils, solvents are available
which can successfully partition contaminants and oils.


ULTIMATE DISPOSAL

Ultimate disposal of process residues and non-recoverable waste oils is
an area which has traditionally presented most operational problems in
                                    49

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the re-refining industry.   Ultimate waste disposal  must be as  efficient
and environmentally sound  as operations used in the rest of the
processing facility.   Table 16 lists the various unit operations  and
the wastes generated by each.   Table 17 lists possible approaches to
ultimate waste disposal.   Option one is the most comprehensive and would
put the most control  over  the disposal  system in the hands of  the State.
Although capital costs would be much higher than for the other five
techniques, this approach  would:

     1.   Minimize the environmental impact of ultimate
          disposal;

     2.   Produce concentrated, relatively pure residual
          wastes which could be disposed of with relative
          ease;

     3.   Place ultimate disposal  practices primarily under
          the aegis of the processing facility;

     4.   Vastly increase  the flexibility of the facility for
          comprehensive waste oil  recovery/disposal; and

     5.   Do away with any possible oil pollution problems due
          to process residues.

With the above factors in  mind as  well  as the availability of  incineration
and stack gas scrubbing equipment, total incineration (Option  One) was,
therefore, selected for preliminary design purposes.
FACILITY DESIGN

The factors (general and technical) just considered lend themselves to
overall ratings of unit processes.  The pertinent evaluations are presented
in Appendix D of this Report.  Such evaluations facilitate the selection
of particular approaches to be used in a full-scale process plant.  The
weighting of various factors was subject to judgment but provides a
guideline for process selection.

Consideration of the unit processes called out in previous subsections plus
their evaluation ratings led to the selection of processes to be included
in the MES facility design.  These selections are discussed briefly in
the paragraphs which follow.

Settling was selected for the WORRP facility based primarily on proven
performance, low capital cost, ease of implementation, and wide
applicability for waste oils.  This unit process would be used as a first
treatment step in most re-refining schemes.  Its major disadvantage is
lack of product purity;  that is, in its own right settling does not
usually result in a  product suitable for use as a fuel oil, let alone
a lubricating oil or lube base stock.
                                     50

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        Table 16.  GENERAL UNIT PROCESS WASTE GENERATION
  Unit Process
        Waste Generated
 1)  Settling


 2)  Centrifugation

 3)  Flash Distillation
 4)  Chemical
     Treatment

 5)  Sulfuric  Acid
     Treatment

 6)  Vacuum
     Fractionation
 7)  Hydrofining
 8)  Solvent
     Extraction


 9)  Adsorbent
     Treatment
10)  Filtration
BS&W (bottoms, sludge and
water)

BS&W

Petroleum light ends
and small amounts of
water

Process sludge
Highly acidic and
oily process sludge

Contaminated
fractions (usually
bottoms or residuum)

Water, hydrogen
sulfide, ammonia,
metallic sludge
and carbon
Process sludge
Small amounts of
vapor due to
catalytic action
Waste, contaminated
clay, carbon or other
solids.
                               51

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Centrifugation has not been included in the facility design due to high
capital, operating and maintenance costs as well  as  lack of proven
performance in the waste oil  processing field.   With settling available
as a more straightforward option, it is suggested (even though centrifugation
may give somewhat better separation of BS&W from waste oil) that
centrifugation not be considered further until  more  favorable development
work or data is forthcoming.

Flash distillation is required for the proposed MES  facility as well  as
almost any other processing scheme.  Given existing  technology, it provides
the most straightforward manner for removing light hydrocarbon contaminants
and residual water from waste oil feedstocks.   The performance of this
unit process has been proven  in the existing re-refining industry, and
capital and operating costs are reasonable.  In general, however, product
purity is such that direct use is not recommended and energy requirements
can be very significant.

Although existing practice has shown that sulfuric acid treatment of
waste oils can lead to excellent product quality, relatively low process
yields (especially for fuel oil production which is  the main concern
here) and almost intractable  residue problems  lead to a firm recommenda-
tion against use of this process in the proposed MES facility.

Chemical treatment is a viable alternative to  sulfuric acid treatment for
the production of fuel oils.   Although demulsifiers, flocculating aids,
contaminant oxidizers and conditioning reagents (e.g., caustics) are
available commercially, chemical treatment, of  waste  oils has not yet  been
demonstrated on a large scale.  However, low capital and operating costs,
high product yields, potential wide application,  low energy requirements,
and, especially, low residue  production make chemical treatment an
attractive choice for a waste oil processing facility involved primarily
in fuel oil production.

Vacuum distillation is a proven unit process in the  waste oil re-refining
industry.  However, problems  with high capital  cost, lack of applicability
to waste oils over a wide enough range, maintenance, and large amounts  of
residue or still bottoms weighed against including it in the MES facility
design at this time.  However, for the production of lubricating oils,
vacuum distillation is an extremely promising  unit process based on
eventually following it with  an appropriate finishing process (See the
following paragraph).  In a comprehensive facility it is necessary to
process waste oils containing large amounts of liquid additives (e.g.,
chlorinated oils or silicones).  On these bases, vacuum distillation  was
not selected for the preliminary design.

Since it aims primarily at finished lube oil production, involves high
capital cost and has not been demonstrated in  actual re-refining
operations, hydrofining was not included in the preliminary design.
However, this unit process has great promise and combined with pre-
treatment such as vacuum distillation should eventually lead to the
                                    53

-------
production of high quality lube base stocks  from waste  (primarily
crankcase) oils.   For fuel  oil  production,  however,  hydrofining was
deemed too advanced a processing technique.   Development efforts in
the months and years ahead could alter this  view significantly.

Like vacuum distillation, solvent extraction has been demonstrated  in
full-scale operations although  not specifically for  fuel oil  production.
Use of pentane, heptane or solvent-grade naphtha rather than  propane
should be suitable for fuels.   Since a comprehensive waste oil  processing
facility will have to deal  with oils containing large quantities of  bulk
liquid additives, a process like solvent extraction  which can partition
these additives from the recoverable oil is  necessary.   Since no other
alternative for this operation  was available within  the existing tech-
nology, solvent extraction was  selected for  preliminary design  purposes.
Capital and operating costs can be high for solvent  extraction  relative
to a unit process like distillation.  Product yield  may also  be less than
that used for preliminary design purposes.   Energy requirements for
solvent extraction are high relative to flash distillation due  to the
necessity of solvent recovery.   However, without a viable alternative,
solvent extraction is included  in the preliminary design despite these
facts.

Although adsorbent treatment (given that a  destructible adsorbent like
activated carbon cannot be used) results in  a residue production problem,
other factors relating to this  unit process  are favorable enough to
weigh in its favor.  For instance, the performance of adsorbent (clay)
treatment has been widely demonstrated, capital costs are low and
implementation should be very straightforward.  Furthermore,  used
adsorbent if incinerated properly presents  minimal landfill disposal
problems;  the oily sludge accompanying the adsorbent  is the  real  pollution
problem and, if burned off, leaves no significant contaminants, according
to present industrial practice.

Filtration is included in the preliminary design to remove not only
spent adsorbent but also flocculated/agglomerated contaminants  from the
product fuel oil.  Rotary vacuum filters have been demonstrated for large-
scale, continuous operation in  the waste oil processing industry.
Although capital cost, operating cost and residue production  are high
for this unit process, it must necessarily be included  in the preliminary
design, given the solids which must be removed to yield an acceptable
product oil.

Each unit process removes contaminants which are, basically:

     1.   Gross water, coarse solids and other materials
          heavier than oil, i.e., BS&W or setteable materials
          (by settling);

     2.   Light ends, naphtha and water, i.e., relatively
          volatile materials (by flash distillation);
                                      54

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     3.   Acidic compounds, additives and contaminants
          stabilized in solution and suspension, including
          nitrogen, sulfur, oxygen, and metal containing
          organic compounds (by adsorbent treatment and
          solvent extraction);

     4.   Odor and color bodies (by adsorbent treatment); and

     5.   Suspended and colloidal solids (by filtration).

 The proposed waste oil re-refining process involves two basic process
 trains:

     1.   Adsorption treatment - chemical treatment-settling-
          flash distillation-adsorbent treatment-filtration.

     2.   Solvent treatment - chemical treatment-settling-flash
          distillation-solvent extraction.

 The first of these serves as a fairly standard waste oil treatment
 procedure.  Primarily, it can treat waste crankcase and industrial oils
 which  contain the usual contaminants handled in the re-refining industry
 but not waste oils composed of large amounts of bulk liquid additives.
 The solvent extraction train is meant to handle oils "contaminated" in
 the latter fashion.  That is, light hydrocarbon solvent(s) serves to
 partition liquid additives from the recoverable oil.

 These  two trains can be termed adsorbent treatment and solvent treatment
 respectively.  Distinctive elements of each may be included in the other
 to enhance results in a practical situation; this is a requirement for
 nothing more or less than process plant flexibility.

 Figure 3 illustrates these two basic process trains and represents a
 simplified version of the process flowsheet which is presented in the
 Preliminary Design Report.  In terms of the processing estimates which
 are presented below, these two main subsections can be considered to
provide a)  standard,  b)  adjusted,  or c)  special  processing.   Standard
processing  refers  basically  to  adsorbent treatment.   Adjusted processing
refers  basically  to  adsorbent  treatment  with  either treatment conditions
or reagents  adjusted  beyond  what is  necessary for the common waste crank-
case  oils;  adsorbent  treatment  preceded  by  a  rough solvent extraction
could also  be  included in  this  processing  category.   Special  processing
                                   55

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refers to the basic solvent extraction treatment train.   Other variations
(based on variation of individual  unit operations)  are possible but the
above suffices for preliminary design purposes.

The adsorbent treatment train involves reagent addition  to a feed waste
oil stream of 27,000 GPD.   Approximately 450 GPD of reagents, including
caustic conditioner, demulsifiers, and flocculants, are  added.   A heated
(200°F) process tank (reactor/settler) serves both  as a  mixing and a
settling vessel for the conditioned waste oil;  1,800 GPD of BS&W results
from the settling process  and subsequently must be  incinerated.  The oil
from reaction/settling is  heated (450°F) and sent to a tower where naphtha
and water still contaminating the  oil are flash distilled and, sub-
sequently, either incinerated or used profitably (possibly the case for
the naphtha).  The oil from the flash tower is then heated further
(550°F) and pumped to an adsorbent contactor where  it is mixed with 500
GPD of adsorbent and carrier oil slurry;  in the case of clay adsorbent,
this slurry volume contains about  3.-6 TPD of clay.   The  adsorbent serves
to remove acidic compounds, additives, and contaminants  in small  quantities
as well as some odor and color bodies.  After adsorbent  treatment the
oil is filtered yielding 24,900 GPD of product oil  and about 150 GPD of
oily adsorbent cake.  Filtration serves to remove not only the adsorbent
but also the flocculated,  relatively neutral-density solids formed in
the reactor settler.

The solvent treatment subsection involves the same  type  processing as
for adsorbent treatment up to the  point where solvent extraction takes
place.  First, 800 GPD additive reagents are mixed  with  24,000 GPD of
feed waste oil.  Reaction  settling then results in  3,400 GPD of BS&W.
Flash distillation follows, yielding 1,400 GPD of water and light ends
(or naphtha).  Solvent extraction  (at about 110°F)  follows that and
results in 1,800 GPD of process sludge or bottoms which  must be stripped
first of residual solvent and then disposed of by incineration.  The
oil/solvent mixture from the extractor is then subjected to a simple
fractionation process to recover 21,900 GPD of solvent overheads and
about 18,500 GPD of product oil.

The schematics for the two subsections represent simplifications of the
flowsheet for the complete process plant.  The flow values are approx-
imate and include adjustment for relatively minor factors like vapor
losses and adsorbent carrier oil.   For a complete materials work-up and
detailed flowsheet the Preliminary Design Report for the Project should
be consulted.

The previous report subsection outlined the selection of complete
incineration for non-recoverable waste oils and process  residues.  The
flowsheet, Figure  4, illustrates  this plant subsection.  The basis for
the simple incineration subsection design was 6,000 GPD of waste oil
requiring only dust collection on  the exit gases to assure that no visible
emission occurs.  The controlled incineration subsection is based on
8,400 GPD of waste oil burned directly plus 8,300 GPD of BS&W, water,
                                    57

-------
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-------
light ends and vapors from the processing subsections;  this total
16,700 GPD of wastes can be highly contaminated and, therefore, must be
subject to strict pollution control during processing as is discussed
briefly in the following paragraph.  Note that the BS&W, water, etc.
indicated in Figure  3 total  to 150 GPD more than that fed to controlled
incineration; this difference is accounted for by naphtha which is  used
as process fuel  or sold as product.  Complete material balances are not
presented for the incineration subsections since they should be developed
during the final  design in conjunction with equipment suppliers.

Simple incineration applies to oils or residues which are not contaminated
with heavy metals, fine particulates, sulfur or ha!ides but yet cannot
be turned reasonably into a valuable product;  such  material can be
burned directly with only simple dust collection from the stack gases.
Some waste edible oils as well as materials like fuel oil tank slops
would be amenable to such treatment.  Contaminated oils and residues will
have to be burned under closely controlled conditions.  Heavy metal
particulates, sulfur dioxide, and halides (primarily chloride) will have
to be scrubbed from the controlled incinerator's stack gases and
recovered as a particulate sludge, calcium sulfate,  and calcium chloride,
respectively.  These materials can be disposed of to the heavy metals
industry, landfill and chemical industry, used for snow melting, disposed
of on land, etc.

Table 18 gives estimates of stream-day flows for feed waste oils based
on the processing categories  discussed above.  "Other Disposal" primarily
refers to sale of special waste oils (e.g., oil-based paint pigment or
insecticide) to other parties.  Whereas Table 13 presented quantities of
waste oil entirely in terms of source category, Table 17 lists them by
processing categories;  the latter is necessary as a feedstock base for
calculations in preliminary design.  Note also that plant operation is
expected to involve approximately 330 stream-days per year of operation
at 24 hours per day.  Thus an effective (complete facility) down time
of 35 days has been alloted for major repairs and maintenance.


FACILITY TANK FARM

The preliminary design of the MES waste oil processing facility includes
considerable attention to oil storage.  Receiving tanks and product oil
storage tanks were included in the design considerations.  The Preliminary
Design Report contains detailed justification for such tankage.  The
following paragraphs outline  briefly the rationales  for tankage as  well
as the gross results from the design effort.

Receiving facilities must consider the regularity with which oils can
be delivered to the plant, daily (statistical) variations in quantities
received as well  as seasonal  variations.  Estimates  of these factors
led to 4 main receiving tanks at 70,000 total gallons to receive 66,000
gallons of waste oil per day.  Similar considerations led to a
                                     59

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 Table  18.   ESTIMATED  STREAM-DAY  FEED  FLOWS  (1975)


                                           Stream-Day
	Category	Flow (gal)

 Waste Crankcase Oil:

 Standard Processing 	 	 _-.__ 16,200
 Adjusted Processing — ----------  9,800
 Special Processing  --------- — -  5,000
 Simple Incineration -- 	  2,100
 Controlled Incineration ------ 	 -  3,200

                                 TOTAL	36,300


 Waste Industrial Oil;

 Standard Processing -- — -- — ---- 10,700
 Adjusted Processing ------------  3,100
 Special Processing	— ___.  2,400
 Simple Incineration ------------  1,800
 Controlled Incineration — — - -	  2,400
 Other Disposal	    300

                                 TOTAL	20,700


 Waste Fuel Oil;

 Adjusted Processing  ------------  1,800
 Special Processing   ----- 	 —  --  1,200
 Simple Incineration  ------------  1,200
 Controlled incineration --------  —  1,800

                                 TOTAL	6,000


 Waste Edible  & Miscellaneous. Oils:

 Special Processing   --------- 	    800
 Simple Incineration  	 _______    900
 Controlled  Incineration --------  —  1,000
 Other Disposal	    300

                                 TOTAL -  -  -  3,000
                          60

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specification for 23 primary waste oil  feedstock tanks  of 1,185,000
gallons.   Since reaction/settling in the process plant  is a batchwise
operation, 4 tanks of 145,000 total  gallons  are also required to hold
the effluent from the reactor/settlers.   Note that the  above number
and volume of tanks are in line with existing re-refining practice.

Product tank requirements are set mainly by  product demand schedules.
Since the proposed facility was designed to  be used primarily for fuel
oil production, seasonal demand for fuel oil  should determine the
necessary extent of product storage facilities.  Although the State  of
Maryland may be the sole buyer for the plant's product, fuel oil demand
in the Baltimore-Washington area provided a  reasonable  base for preliminary
design estimates.  Ten product tanks were deemed necessary at 9,850,000
gallons based entirely on an analysis of fuel oil demand.  Three of  these
tanks are for product cutter stock used in blending to  meet specifications.


LAND REQUIREMENTS

Land for the proposed waste oil processing facility must be allocated to
the basic tank farm  (storage and holding), receiving tankage, the two
treatment subsections, the incineration system, plant buildings and
parking, and road and rail access.

Table  19 lists the preliminary land estimates for these elements.  Note
that the various tankage requirements account for about one-third of the
land area.   For preliminary purposes, about 5/8 acre has been included for
possible future expansion, outdoor storage and contingency.  Space has
also been allotted for boundary clearance with adjoining property;  this
is critical  for tanks holding  flammable liquids and for process equipment
which  presents a potential fire hazard.  In-plant clearance between  sub-
sections and installations is  also necessary.  American Petroleum
Institute Standards  for  oil storage tanks cover such considerations  in
detail and  should be used  for  final design.

                       Table 19.  LAND  REQUIREMENTS

     Plant ElementArea (acresT
Tank Farm
Receiving Tankage
Adsorbent Treatment Subsection
Solvent Treatment Subsection
Incineration Subsection
Plant Buildings and Parking
Road and Rail Access
Expansion and Outdoor Storage
Subsection and Plant Clearance
T(")TA| 	

3.7
0.2
0.7
0.8
0.8
0.5
1.2
0.6
4.5
i^ n

                                     61

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The above considerations may eventually prove crucial  due to high land
costs.  Since land involves more general  econonic and  political  consider-
ations, its cost has not been included in the capital  cost estimates
developed here.


COST ESTIMATES

Table 21 is an estimate of the capital cost for the entire processing
section of the proposed facility.   This capital cost is  used as  an input
to Section VIII  on program economics.

Table 20 contains a tabulated summary  of preliminary cost estimates for
the process equipment discussed in the previous sections.  These
estimates are arranged in four groups  corresponding to the four  major
processing subsections.  It should be  noted that the incineration sub-
section requires a large portion of the total capital  cost which could
even be larger if more sophisticated air pollution control systems
eventually prove necessary (e.g., a baghouse as opposed  to a venturi
scrubber for particulates removal).  The other major subsection  in terms
of cost is represented by the reactor/settler tanks;  final design should
devote considerable effort to reduce its cost.  For instance, if standard
carbon steel tankage could be used for this purpose as opposed to
agitated, heater reactors, a major cost savings would  be achieved.  The
adsorption treatment and solvent extraction subsections  are nominal in
terms of relative cost and, therefore, probably cannot be the object
of major cost savings efforts (Additional details are  included in
Appendix D).

A summary of tank cost for a full-scale tank farm  is  shown in Tables
22 and 23.  These costs relate directly to the discussion of the facility
tank farm and, again, are detailed in  entirety in the  Preliminary Design
Report.

Tables 24 and 25 are summaries of preliminary capital  cost estimates for
the small or first-stage base plant.  This facility has  a processing
capacity of 22,000 GPD of waste oil plus an additional 8,400 GPD inciner-
ation capacity.   That is, the incinerator subsections  are the same as for
the full-scale plant while the other equipment has been  selected from
that of the full-scale facility so as  to provide a representative
processing capability.  This plant, therefore, can serve as a first-stage
facility in the eventual development of a full-scale,  comprehensive process
plant and program.
PRELIMINARY DESIGN PRODUCT FLOWS

Table 26 lists the preliminary estimates of produce flows based on both
the type of waste oil and the processing approach.  The product flows
of Table 26 have been adjusted to account for product oil which 1) added
                                     62

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             Table 20.   PRELIMINARY  CAPITAL  COST ESTIMATE

             FOR A FULL-SCALE  MES WASTE  OIL  RECOVERY  PLANT*
        Basic  Equipment  Costs,                  $1,110,000**
        Field  Materials  (75%>t                    820,000

        Direct Material                         $1,930,000
        Direct Field Labor  (35%)                   650,000

        Direct Costs        ^                  $2,580,000
        Indirect Costs (43%)k;                   1.110,000

        Bare Module Cost^                      $3,690,000
        Plant  Buildingsd-'                          170.000

        Base Plant Cost .^                      $3,860,000
        Site Development^                         190,000

        Estimated Total  Plant Cost              $4,050,000


                 Estimated Working Capital     $  160,000
 *  Total costs estimated according to "Rapid Calculation Charts",
    Chemical Engineering, Jan. 13, 1969 for carbon steel.  Does not
    TncTude Yand costs.  Costs have been escalated to first quarter
    1973.
**  Includes $25,000 for pumps.

(D Secondary cost element including piping, instrumentation,  foundations
    and other concrete work, local steel, electrical  and other utilities,
    paint, etc.
(E) Secondary cost element including construction overhead (field super-
    vision, temporary field facilities, small tools,  etc.) and engineering
    and contractor fee (direct engineering labor, overhead office costs,
    etc.) and interest during construction, owners'  costs & 1  month's
    startup.

© This cost does not include site development, pilings, buildings
    major storage or other offsite facilities.   Offsite costs  associated
    with the complete WORRP system are considered elsewhere in this
    report (e.g. , Section  ).

(D  Laboratory, office, warehouse and shop space, fully equipped.

(e)  Estimated at 5 percent for this process plant module.
                                  63

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         Table 21.   PROCESS  EQUIPMENT  COSTS  BY  PLANT  SUBSECTION
                                                             PURCHASED
                           ITEM                                 COST
Reactor/Settler Tank Subsection:

Standard Processing-Crankcase Oils —- 2 at 30,000 gal.	  $ 96,800
Standard Processing-Industrial Oils — 2 at 20,000 gal.	    73,600
Adjusted Processing	 2 at 45,000 gal.	   132,200
Special Processing		 2 at 30,000 gal.	    96,800
Caustic Reagent Tank	-	       2,500 gal.	-     2,100
Misc. Reagent Tanks	 5 at    275 gal.	     3,200
Oxidizer Reagent Tank		       1,000 gal.	     1,600

                                       SUBTOTAL 	-	  $406,300
Adsorbent Treatment Subsection:

Heat Exchanger	 350 ft2		$  3,900
Process Heater	-	1.5 x 106 Btu/hr.	   15,400
Flash Tower		-	18x4 ft. 	    3,100
Air Cooler ---			 15 ft2 --		    2,300
Process Heater		—	5.7 x 10° Btu/hr.	   25,500
Absorbent Contactor	-	28 x 6 ft.		    6,600
Air Cooler	—	 15 ft*	    2,300
Adsorbent Addition Tank	 30 gal.		    2,500
Adsorbent Feed System	 550 Ibs/hr		    4,000
Air Cooler		210 ft2		    4JOO
Rotary Precoat Filters	 12 x 8 ft.	   67,800
Air Cooler		210 ft2		—    4,100
Naphtha Holding Tanks		 10,000 & 20,000 gal —    9,100

                                       SUBTOTAL		$150,700
                                    64

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   Table 21  (Continued).   PROCESS EQUIPMENT COSTS BY PLANT SUBSECTION
                                                              PURCHASED
                                 ITEM                            COST
Solvent Treatment Subsection:

Heat Exchanger		290 ftl	$   3,500
Process Heater	2.7x10  Btu/hr	17,900
Flash Tower		22x4 ft		3,700
Air Cooler - -		15 ftz5	2,300
Air Cooler -		170 ftr	- -  3,400
Agitated Tank Reactors	20 7,100 gal	66,200
Solvent Tank	22,000 gal	9,800
Bottoms Tank	9,500 gal	6,500
Extract Tank	15,500figal		7,000
Process Heater	4.7x10° Btu/hr	22,600
Fractionating Column 	  20x2.59ft 	  3,900
Air Cooler		535 ft^	7,600
Air Coolers	3 @ 15 ftr	-. 6,900

                                                Subtotal      $161,300
Incineration Subsection:

Belt Conveyors	3.9TPD	$  2,400
Multiple Hearth Kiln	750 Ibs/hr	45,000
Routine Incinerator	9x10 gBtu/day	73,500
Controlled Incinerator --	16x10  Btu/day	70,000
Particulates Scrubber	17,100 SCFM	52,500
Acid Gas Scrubber	17,100 SCFM	45,000
Particulates Clarifier ---	33gpm		-  7,900
Acid Salts Clarifier ---	51  gpm	7,900
Rotary Filter	100 ftz	34,000
Particulate Slurry Tank	39,000 gal	7,900
Gypsum Slurry Tank		22,000 gal	4,600
Slaker and Feed Hopper 	 --9TPD 	-12,200

                                                Subtotal       $362,900

                                                   TOTAL      $1,080,000
                                   65

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            Table 22.  PRELIMINARY CAPITAL COST ESTIMATE

                   FOR A FULL-SCALE MES TANK FARM



               Direct Costs              $1,090,000*

               Indirect Costs®            270,000
               Base Tank Farm Cost       $1,360,000

               Site Development®          140,000
               Bare Tank Farm Cost       $1,500,000

               Contingency©               150,000
                                         $1,650,000
 *   Includes  10%  for  tank  foundations  and  $41,000  for pums.

(a)  Estimated at  25%  for engineering labor,  overhead,
    office costs, field supervision, etc.

(b)  Estimated at  10%  for preliminary purposes.

(c)  Contingency is 10% based  on 5% for site  development,
    indirect  costs and foundation  estimates  accuracy
    plus 5% for inaccuracies  in basic  equipment estimates.

(H)  Does not  include  land  costs, working capital,  start-
    up costs, owner's expenses  (borrowed capital  interest,
    legal  expenses, management  expenses, etc.).
                                   66

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Table 23.  SUMMARY OF MES WASTE OIL PROCESSING FACILITY



                   TANK REQUIREMENTS
Tank Type
Receiving
Feedstock
Crankcase Standard Processing
Industrial Standard Processing
Adjusted Processing
Special Processing
Other Waste Oils
Simple Incineration
Controlled Incineration
Process Holding
Product
Lube Oil Base Stock
Cutter Stock
Blended Fuel Oil
TOTALS
No.
4

2
2
5
4
6
1
3
4

3
3
4
41
Total Volume
(qal)
70,000

350,000
120,000
175,000
150,000
205,000
75,000
110,000
145,000

200,000
900,000
8,750,000
11,250,000
Installed Cost
$ 48,000

52,000
33,000
58,900
49,000
78,200
19,200
35,000
48,700

50,500
92,700
389,600
$955,000
                           67

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         Table  24.   PRELIMINARY CAPITAL COST ESTIMATE FOR A

             FIRST-STAGE MES HASTE OIL RECOVERY PLANT*
          Basic Equipment Costs                 $  570,000
          Field Materials (75%)a                   428.000

          Direct Material                       $  998,000
          Direct Field Labor (35%)                 349.000

          Direct Costs                          $1,347,000
          Indirect Costs (43%)b                    580.000

          Bare Module Costc                     $1,927,000
          Plant Buildingsd                         170.000

          Base Plant Cost                       $2,097,000
          Site Development6                        105.000
          Estimated Total Plant Cost            $2,200,000


          Estimated Working Capital             $   125,000
*  Total  costs  estimated  according to  "Rapid Calculation Charts",
   Chemical  Engineering,  Jan.  13, 1969 for carbon steel.  Does not
   include land costs.  Costs  have been escalated to the first
   quarter,  1973.

a  Secondary cost  element including piping, instrumentation, founda-
   tions, and other  concrete work, local steel, electrical and other
   utilities, paint,  etc.

b  Secondary cost  element including construction overhead (field
   supervision, temporary field  facilities, small tools, etc.) and
   engineering  and contractor  fee (direct engineering labor, overhead
   office costs, etc.)  and interest during construction, owner's
   costs  & 1 month's  start-up.

c  This cost does  not include  site development, pilings, buildings,
   major  storage or other off-site facilities.  Off-site costs
   associated with the  complete  WORRP  are considered elsewhere.

d  Laboratory,  office,  warehouse and shop space, fully equipped.

e  Estimated at 5% for  this process plant module.

                                68

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            Table 25.  PRELIMINARY  CAPITAL COST ESTIMATE

                  FOR A FIRST-STAGE MES TANK FARM



       Direct Costs                            $ 565,000

       Indirect Costs ©                          141,000
       Base Tank Farm Cost                     $ 706,000

       Site Development®                         71,000
       Bare Tank Farm Cost                     $ 777,000

       Contingency©                             78,000
       TOTAL 
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 Table 26.  ESTIMATED STREAM-DAY PRODUCT FLOWS (1975)
Category
Waste Crankcase Oil:
Standard Processing
Adjusted Processing
Special Processing
TOTALS
Waste Industrial Oil:
Standard Processing
Adjusted Processing
Special Processing
TOTALS
Waste Fuel Oil:
Adjusted Processing
Special Processing
TOTALS
Waste Edible & Miscellaneous Oils
Special Processing
TOTALS

GRAND TOTALS

Stream-Day
Flow (gal)

13,800
7,000
3,800
24,600

9,300
2,200
1,800
13,300

1,300
900
2,200

600
600

40,700

Yield
(%)

85
71
76
68

87
71
76
64

71
76
37

76
20

62

*Based on percent of the feed stream to a particular
 processing subsection which the product represents.
                            70

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to process streams as a carrier fluid for reagents  and adsorbent and 2)
used as in-plant process fuel.

As mentioned previously, basic  products which will  be produced by the
plant include fuels, lubricants and solvents  (naphtha/light ends).   The
fuels are primarily heating grade oils — #4  and #5.   Number 6 heating
oil may be produced in small  quantities depending on  the viscosity of
the waste oil feedstocks.   Additionally, approximately 1,500 GPD of
lubricants (including hydraulic oils and motor oils)  could be produced
in small quantities by processing of waste crankcase  oils.   For
preliminary purposes, only 500,000 gallons per year should be allocated
to lube oil products;  larger amounts of lube oil production would be
more than Maryland State Agencies could reasonably  accommodate.   Small
amounts of solvents also will be produced as  a byproduct.   Essentially,
these originate from gasoline dilution of crankcase oil, solvent
contamination of industrial oils, and the effects of  adsorbent treatment
on waste oils.
                                    71

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                              SECTION  VII

                      COSTS OF SYSTEM ALTERNATIVES

INTRODUCTION

The mathematical techniques presented in Appendix K (the Cash Flow,
Revenue, and Profit Model)  and the values for the parameters shown in
the tables of Appendix L were utilized to generate the costs, revenues
received, cash flow, and cost per gallon of product for twenty alter-
native plant and operating  conditions.  These include:

     1.   Two different types of plant -- mechanical-chemical and
          vacuum distillation;

     2.   Two methods of financing -- total amortization and equity
          financing;

     3.   Three modes of payment for the waste oils collected and
          delivered to the  plant --

          a) The source or  collector is paid 2
-------
As the plants could be financed by either the State or private industry
at variable rates, two financing alternatives were considered:  100
percent financing at 7.25 percent and 100 percent capitalization,
requiring zero financing.  This comparison gives information on the
effect of interest rate on the unit cost of the product.

The price of the waste oil feed to the plant is important in evaluating
overall plant economics.  To determine the impact on the  profit picture,
the cost of the waste oil and feed, and a potential subsidy by the State,
a broad range of values were compared.  To reflect having to pay the
collectors 2
-------
Comparisons of Case II and Case III conditions indicate the need to con-
sider every advantage possible for more effective and less costly operation
of the plant.  This operating program results in a significant net profit
before taxes.

CASE III -- MECHANICAL-CHEMICAL PLANT

Case III is the contrary of Case II, i.e., more pessimistic assumptions
were made that would severely penalize the operation of the facility from
a cost and revenue point of view,  in order to indicate the vulnerability of
the program to sustain large losses if several of the significant variables
are adversely  affected by mismanagement.  The quantity of waste oil pro-
cessed is 18,000,000 gpy.   These constraints result in substantial financial
loss.

CASE IV -  MECHANICAL-CHEMICAL PLANT

To determine the impact of financing on the cost per gallon of product pro-
duced, Case I was re-run with 100 percent equity capital, i.e., zero financing
costs  for plant construction capital needs.  The subsidies in this case result
in a favorable net profit before taxes.

CASE V -- MECHANICAL-CHEMICAL PLANT

Recent unpublished research results indicate the potential for sale of process
bottoms for a value approximately equivalent to costs for hauling to a dis-
posal  site.  Full-scale application of such research results would have the
effect of eliminating significant load to the proposed plant incinerators and
could  permit elimination of one of the two incinerators.   Accordingly, Case
I was  run with only one incinerator.  The effect of this  modification is
only moderate compared to the losses sustained in Case I.

CASE VI — VACUUM DISTILLATION-HYDROFINING

Information was made available to this program through the Environmental
Protection Agency describing a concept utilizing vacuum distillation followed
by hydrofining for product polishing.  Information was available related to
cost and revenue data for a 29,000,000 gallon per year capacity plant.
The concept was "normalized" to 30,000,000 gallons per year in order to
permit analysis under the same conditions as in Cases VII and VIII, and pro-
vision was made for additional storage tanks and an incinerator.  The
additional waste oil over that projected to be available  within the State
of Maryland (8 million gpy) was assumed to be available from neighboring
states, and the out-of-state supply was assumed to consist of only recover-
able oils.  Non-recoverable oils were to remain within the source states
for ultimate disposal.

Since  the State of Maryland currently has a need for fuel oil, the analysis
assumed that the plant was constrained to produce half fuel oil and half
lube oil stock.  Also, the plant was assumed to be installed and operated
by private investors, but with 100 percent financing.  Accordingly, various
State  and local taxes were ascribed to the operating costs.
                                      74

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CASE VII -- EXPANDED MECHANICAL-CHEMICAL PLANT

The concept of mechanical-chemical unit processes for waste oil recovery
results in high flexibility for accommodating a wide variability in
quality of feedstock, and producing a wide variety of products.  Such
a plant would utilize a proportionately larger number of personnel and
result in higher operating costs than other systems.  However, for the
sizes of plant considered and with full use of automation, the plant
capacity could be significantly increased without adding any additional
personnel.

Accordingly, the plant capacity was increased to 30 million gpy with
associated increased capital costs and variable operating expenses,
but the number of plant personnel was kept constant.  As in Case VI,
it was stipulated that such a plant would be installed with private
capital, would be taxed, and the 80,000,000 additional gallons of
feedstock were assumed to consist of recoverable waste oils only.
Only the subsidized alternative at 4
-------
Table 27.  SUMMARY OF CASHFLOW REVENUE AND PROFIT ANALYSES



           TWENTY ALTERNATIVE SYSTEM CAPACITIES
Alternative
Volume Plant
Gal. x 10'6 Type
U
Case


Case
Case
Case


Case


Case


Case


Case



I/




2/
3/
I
I


II
III
IV


V


VI


VII


VIII



a)
b)

c)

M-C
A
a
b
c


a
b
c
a
b
c
a
b
c
a
b
c
a
b
c

The
The
is
The
is
19
19
19
22
18
19
19
19
19
19
19
30
30
30
30
30
30
30
30
30

source
source
.8
.8
.8


.8
.8
.8
.8
.8
.8









or
or
supported
source
or
supported
Financing
U
M-C
"
"
M-C
M-C
M-C
"
"
M-C
n
"
VDH
11
n
M-C
n
"
M-C
II
"
collector i
collector i
by a H per
collector i
by a 4<£ per
= Mechanical-Chemical
= Amortization, Interest
Private
Product
Investment of Capital
sales price increased
A


A
A
E
E
E
A


A


A


A


s paid
s paid
gal Ion
s paid
gallon
, 7
"
"
, 6
, 7



, 7
"
"
, 7
"
"
, 7
II
II

, 7
"

2*
2<£
I/
.25


.53
.98
4y


.25


.25


.25


.25 I/


per gallon
per gallon
Net Income
Before Taxes
$ x TO'6

- 1
- 0
- 0
+ 1
- 4
- 0
+ 0
+ 0
- 1
- 0
- 0
0
+ 0
+ 1
- 0
- 0
+ 0
- 0
+ 0
+ 1

, but the

.2
.8
.4
.8
.9
.2
.2
.6
.1
.7
.3

.7
.2
.7
.1
.5
.1
.5
.1























program
subsidy.
2
-------
$0.20 per gallon (Case I) while the expanded plant produced fuel
at a breakeven price of $0.15 per gallon (Case VII).   While some
of the observed reduction is due to the receipt of "preferred"
feedstock, the dramatic drop in cost is also a function  of the  fact
that fixed operating costs are now spread over 50 percent greater
volume of throughput.   The formulation for breakeven  price does not
include revenues from sales of product and, therefore, is a function
largely of system costs.   This indicates that a regional  plant
could result in greater cost efficiencies, since available feed-
stock volumes would be greater.

Initial Cost of Plant

The initial cost of the mechanical-chemical plant is  $5.7 million
at the nominal capacity of 20 mgy.  This is reflected in the impact
of cost of investment capital.  At the same rates of  interest,  the
effect on the cost of the products produced is approximately 1.25
to 1.40
-------
     is approximately 3
-------
     The vacuum distillation plant cannot handle as broad a spectrum of
     waste oils as the mechanical-chemical  plant.   Its overall  process
     plant efficiency is only 0.757 compared to that of 0.775 in Case I.
     Conversely, the effect of the "selective"  grades of oil  is to  increase
     the expanded mechanical-chemical  plant efficiency to 0.834, a  7.6
     percent increase over Case I and 10 percent increase over Case VI.

     The impact is such that even though the construction costs are
     higher for the expanded Case VII  plant than for the Case I plant,
     the average breakeven sales price is 5<£ per gallon less  for the
     big plant.

     It therefore becomes important to optimize the degree of segregation
     of waste oil types to the point where  the  plant efficiency is
     maximized without an undue penalty with respect to the costs for
     segregation.

8.    Price of Product

     The impact of the price which may be charged for the product is
     reflected directly on the net profit before taxes.  A three-cent
     increase in fuel oil prices will  result in substantial increases
     in profits.  This can be seen by comparing Cases VII and VIII.

     Product value will make the difference between a plant being
     profitable and requiring a subsidy, in almost all cases.

9.    Type of Product

     The alternatives which have been  considered do not provide a ready
     comparison between lube oil and fuel oil  production.  Although
     base lube oil stock has a considerably higher market value than an
     equivalent volume of fuel oil, a giyen process plant can produce
     less lube oil than it can fuel  oil.  That is, lube oil production
     efficiency is significantly less  than  that for fuel oil.

     Lube oil is about 64 percent more valuable than fuel oil.   Shifting
     the proposed MES waste oil processing  facility to predominantly
     lube oil production could  lead to an  increase in net profit.   This
     is partially borne out by comparing Cases  VI and VII.  Production
     of lube oil would require an increased capital expenditure for the
     mechanical-chemical plant.

In  summary, cost centers have been identified and sensitivity analyses
have been performed.  These have helped in  the design of the  Waste  Oil
Recovery System.  As many "cost centers" as possible should be further
identified and additional sensitivity  analyses  should be performed  to
determine the greatest positive impact on the cost of producing various
products as the program proceeds from one phase to next utilizing the
data developed from the program itself.
                                    79

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In addition to the above effects on waste oil  recovery and reuse programs,
the positive impact of the program on cleanup  costs  for spilled crankcase
or industrial  lubricating oils should be discussed.

Data on frequency, type, and size of oil spills  were provided by the
Maryland Port Authority for oil spill recovery operations  over a 16-
month period.   The cost of cleaning up these various sources  and
quantities of oil is of the order of approximately $200,000 per year,
or almost $14 per gallon.

On the basis that approximately 50 percent of  the oil spills  may be
convenience or unknown spills (i.e., the source  has  no disposal site or
does not wish to pay for disposal), this amounts to  a sum  of $100,000
per year that can be saved.  If the basis of 50  percent is correctj
this amount, if ascribed to the processing plant, could have an impact
up to 0.8£ per gallon on products produced.

It can be assumed that an MES waste oil  and recovery and reuse program
that includes permit requirements, monitoring  and compliance programs,
plus the various incentives which may possibly be associated with WORRP,
will practically eliminate the convenience spills as a means  of waste
oil disposal.
                                    80

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                              SECTION  VIII

                LEGISLATIVE AND PROGRAM MANAGEMENT NEEDS

In order to ensure a cost effective and efficiently operated system,  it
will be necessary for the State of Maryland  to initiate the waste oil
recovery and reuse program and to play a continuing role in it.   Specif-
ically, the role is defined as follows:

     1.   To ensure that all sources of waste oil  are collected
          and accounted for, to the maximum  extent possible;

     2.   To the maximum extent possible, ensure that all  collected
          waste oils are delivered .to an MES facility, or a State-
          approved facility in Maryland, or  a facility outside the
          State approved by the receiving state;

     3.   To implement a continuing management function, including
          permits, monitoring, and possibly  financing;

     4.   To require that all  waste oils delivered are reprocessed
          or disposed of in an environmentally acceptable manner; and

     5.   To participate financially to the  extent necessary and
          reasonable to attract private investment.

In general, the legislation exists which will permit the implementation
of a waste oil  recovery and reuse program.   However, some revisions to
certain regulations will be required in order to result in an effective
program.  These requirements are as follows:

     1.   To ensure that all sources of waste oil  are collected  and
          accounted for —

The Maryland State Department of Natural Resources, in Section II.A of
Rules  and Regulations, 08.05.04.02, already  has sufficient authority to
require all those engaged in oil collection, storage, transport, repro-
cessing, and marketing to obtain a "permit"  to operate.

Unless given a rigorous interpretation, Section II.B may be ambiguous
for oil collection and transfer, in that it  requires an owner or operator
to be  "adequately equipped to prevent oil pollution and to control oil
spills, and has the capability to handle oil in accordance with  this
regulation and without discharge into waters of the State".

The interpretation or rewrite of this section of the regulations should
include provisions for reporting and delivery to an MES facility or other
                                     81

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approved facility (i.e.,  by other State  agencies)  and to have  adequate
spill protection and cleanup at all  transfer points  (even truck-to-truck).

In partial fulfillment of requirements  for a "permit", a collector should
be required to maintain detailed records of his  collections  and to pro-
vide MES with any requisite data on  a regular basis.

In order to verify the accuracy of collection information, the numerous
sources should participate in the program also.   As  all  sources are
involved in at least oil  receiving and  waste oil  removal, they would
fall within the requirements of Section  II.A(l)  which states:   "A permit
is required, in accordance with the  provisions of this regulation for
the operation of an onshore facility when it involves the transfer of oil
to or from any truck, tank, transport or tank car",  and Section VI(A)
which states:  "This section applies to any commercial or industrial
operation involving the handling of  oil  regardless of the nature, size,
or location of the operation".

The existing application  for an "Oil Handlers' Permit" is inadequate for
waste oil collection needs.  Another permit application should be
prepared explicitly for waste oil collection, transport, storage, transfer,
data retrieval, monitoring, and compliance needs.

     2.   To the maximum extent possible, ensure that all collected
          waste oils are delivered to an MES facility, or a State-
          approved facility —

In order to justify any investment in facilities to store, process, and
dispose of waste oils, it is necessary to assure an effective  use of that
investment.  If construction and/or operation is based on a private
investment, then the private investor must be assured that a sufficient
quantity of feed stock (in this case, "waste oil") is available to
process into a useable product.

A State-owned and operated facility may operate at a loss on the assumption
that waste oil recovery is a State problem, equally distributed through-
out the State.  Also, a loss may be assumed to be attributable to environ-
mental quality control.  The loss may then be recovered by taxation or
other means for cost recovery.

Currently, it has been determined that waste oils are being collected and:

     a)   Delivered out-of-state for burning as a fuel oil
          after having been diluted with virgin fuel oil, or
          delivered directly as waste oil;

     b)   Burned in Maryland;

     c)   Used for dust control on  roads and other areas;
                                     82

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     d)   Shipped out-of-State to be  reprocessed  as  a  base
          lube stock;

     e)   Dumped onto the ground as  convenience discharges;  and

     f)   Discharged to sewers and storm  drains as convenience
          discharges.

Li m i t B u r_n i n g o f L e ad - C on t am i n ate d W a s te  Oil

Burning of waste oils has received much attention in recent  years.
Results of burning tests conducted for  the  American  Petroleum  Institute
in the Task Force on Used Oil  Disposal  indicate varied results with
regard to both burning equipment and  stack  emissions.   Estimates  of  the
amount of lead in waste oil  vary from about 0.8 percent to 1.2 percent.
A rule-of-thumb value developed by the  Association of  Petroleum Re-
Refiners as a result of sampling large  quantities and  ranges of types  of
waste oils appears to be approximately  1000 Ibs.  of  lead per 10,000  gallons
of crankcase oil drainings  (Association  of Petroleum  Re-Refiners, Letter
Report, February 11, 1970).

It appears that approximately 50 percent  of the lead is emitted to the
atmosphere with the remainder in the  ash  or as a  build-up on heat
exchange surfaces and resulting in decreased heat transfer efficiencies.
Recent tests conducted by ESSO Research and Engineering Company for  the
State of Massachusetts indicate that  approximately 80  percent  of  the
lead in the waste oil is discharged into  the atmosphere (Waste Oil
Reprocessing, January 1973).   Of this amount, approximately  95 percent
of the lead appeared as particulate matter  and was in  the sub-micron
particul ate size range.  The testing  program was  conducted on  a fire
box type boiler.  It was inferred that  a  water tube  boiler would  remain
at a high efficiency longer than a fire tube boiler, but stack emissions
would be still higher from a water tube boiler due to  the greater burning
efficiency.

However,  the  following observations  may  be made:

     a)   Waste  oil  is a source of energy  during a  period  clearly
          affected  by  petroleum products shortages;

     b)   Direct burning of waste oils with large volumes  of virgin
          products  may not  result in unacceptable environmental
          effects  in certain  areas;

     c)   Adverse  effects  on  burner  equipment  of diluted waste oils
          may  be acceptable  from a maintenance point  of view ;

     d)   Burning  facilities  equipped  with adequate air-cleaning
          systems  will  be  able to utilize  waste  oils  without
          adverse  environmental effects;
                                    83

-------
     e)   All types of burning equipment  cannot utilize waste oils
          because of detrimental effects  on  the equipment and
          because of emissions of heavy metals; and

     f)   Without adequate air cleaning equipment,  fallout of
          heavy metals and subsequent  assimilation  may result in
          an environmental health hazard.

In order to control  the sale  of contaminated  waste oil  as  a fuel  oil
without the knowledge of the  specific customer,  the  customer must be
informed by the supplier that the material  being received  is fuel
containing a stipulated fraction  of  waste  oil.

The customer should be informed because the waste oil  or waste oil  mix-
tures may cause operating difficulties  in  burners and  result in increased
maintenance requirements, and heavy  metal  emissions  may result from
improperly controlled stacks.

Burning tests and evaluations should be pursued  as an  alternative for
waste oil disposal.

Controls for Out-of-State Shipments

Shipping out-of-State may be  permitted by  Maryland if  the  interstate
transporter is licensed by Maryland, and if the  means  for  processing,
handling, and disposition are also  approved by the receiving state.
Transfer points or temporary  storage or transfer facilities should like-
wise be suitably licensed.  Furthermore,  as a permit condition, all
collectors must agree to pick up all sources  of  waste  oils, and all  long-
distance waste oil haulers must also agree to transport all the classes
of waste that are picked up by the  local  collectors.   Failure  to comply
could be controlled by provision for revocation  of an  operator permit.

If the'out-of-State shipment  alternative could be applied  totally for all
waste oils, the State of Maryland will  have had  its  waste  oil  problem
resolved at minimum cost and  with no need  for any capital  investment  for
processing and disposal facilities.

If the out-of-State movement  of waste oils is not controlled,  there will
be an inadequate supply of feed stock for satisfactory operation of the
reprocessing facility, and Maryland will  be forced  to  handle only those
sources of waste oils that require  relatively more  costly processing  or
which must be incinerated or disposed of by other means.  Additionally,
a resource is lest for reuse  within  the State.

If only the easily reprocessable oil is shipped  out-of-State,  and all the
non-recoverable oil remains within  the State for handling and  disposal,
the capital investment for storage,  processing,  and  disposal facilities
will be of the order of $2 to $3 million.   Unit  operating costs for this
                                    84

-------
fraction of waste oils are relatively high.   Since revenues are predicated
on the sources being billed by MES for the disposal  services, the State
would have to provide the identical management services for this concept
as it would for other alternatives.  This cost would have to be borne by
the remaining sources, or MES would have to impose a fee on the sources
collected for out-of-State delivery.  Consideration  should therefore be
given to imposing a fee on all waste oils collected  in Maryland and
delivered directly to out-of-State users.  This fee  would be used to
defray the costs for managing the entire Waste Oil Recovery and Reuse
Program.

Financial Incentives

The most effective means for insuring delivery of waste oils to a State
receiving facility is associated with financial incentives.  If Maryland
would pay collectors a somewhat greater fee than could be had from out-of-
State purchasers, the waste oil supply would undoubtedly come to a Mary-
land facility.  On the basis of the financial analyses performed, the
overall cost of the program will initially be greater than the various
sources of revenue expected from product sales, and  this will continue to
be the case until high plant throughput is achieved.

The State could implement a subsidy philosophy through one of the following
alternatives:

     a)   Maryland could subsidize the program from  available
          funds and treat this subsidy as a cost for pollution
          control and resource recovery; or

     b)   Maryland could impose a fee on all virgin  oils
          delivered within the State.

The amount of additional revenue required is dependent upon the current
development phase of the program:

     Phase   I --  Interim Phase - does not include  a plant
                   for reprocessing

     Phase  II --  The plant is operating, but at less than
                   design capacity (if Phase I does  not prove
                   adequate)

     Phase III --  Plant operating at design capacity

     Phase IV  --  Expanded plant for greater throughput
                   using same administrative and operating
                   personnel, plus minor capital investments

During Phase I, oil is collected and delivered to an MES facility.  MES
analyzes and stores the oil, and manages the overall system.  The
                                    85

-------
collected oil is sold to out-of-State re-refiners or acceptable in-State
consumers.   MES pays the collectors for delivering all  oils, pays for
disposal of non-recoverable oils, sells usable waste oils and bills the
various sources for disposal  services of the non-recoverable fractions.
A modification of this alternative is to leave the existing system as
it is (handling largely those waste oils which have a reuse potential)
and provide a service for disposal of those waste oils  which are non-
marketable by the source.  However, since only a fraction of the
recoverable oils are currently being picked up, this fraction of the
resource could not be recovered.

From the data collected and the financial analyses conducted during this
study, MES would pay the collectors an average of about 2 to 3<£ per
gallon for all sources of waste oils.  MES management services would
impose another 2 to 3<£ per gallon onto the costs for collection.  Waste
oil can be sold to several re-refiners located within 200 miles of the
proposed central facility site for approximately 3t per gallon.

Revenues of 6 to 8i per gallon can be obtained if the waste oil can be
directly utilized as a fuel with  appropriate air pollution controls.

Without direct consumption, it appears that a subsidy of 1 to 3£ per
gallon of waste oil would be required to cover all the costs for oper-
ating WORRP during the interim phase.  With direct consumption as a
fuel, a subsidy may not be required.

During Phases II through IV, the financial analyses indicate a need for
additional subsidies due to the large capital investment and the number
of personnel required to operate a complete storage, processing, and
disposal complex, coupled with a relatively low volume of throughput
during  the initial months of operation.  It is not until the plant reaches
a capacity greater than 20 million gallons per year (in 1975) that the
need for a subsidy diminishes or disappears.  (Refer to Section VII for
detailed analyses of capital and operating cash flow, costs and profits
during  the various stages of the program and for various plant through-
puts.)

For example, a waste oil collection  and disposal fee of 1<£ per quart on
all virgin lubricating oil sold within the State could be imposed.  On
the basis of U.S. Bureau of Census data, Maryland utilized some 43
million gallons of automotive and industrial lubes during 1969.  Even
with no increase this volume would produce a revenue of $1,720,000.  This
study shows  that this volume of virgin oil produces approximately 13
million gallons of waste oils.  A modification could be 2
-------
at the outset of the WORRP, and subsidize the early phases of the
reprocessing and disposal aspects of the program.

The fee assessment method of resource recovery and pollution prevention
is operating successfully in Germany, where it was initiated in 1970.
Such a program, conducted in Maryland, could have similar benefits.
Based upon an average motorist mileage accumulation of 15,000 miles
per year, oil changes every 3,000 miles, and addition of make-up oil
every 1,000 miles, the costs to the individual motorist would be of the
order of 35
-------
Section 9 indicates that the Secretary of Natural  Resources can
request a waste oil recovery program, and that costs for the
program "shall be borne by the person against whom...the order was
issued...and that the Service shall determine...the costs, rental
charges or other fees to be paid by the person to the Service."

MES would use these funds to pay the collectors directly for all
waste oils delivered to the State facility.  It would replace the
fee the collector charges each source for pickup.   This mode of
operation will induce the collector to pick up all oil sources and
deliver these oils to the State facility.  Care must be exercised
to include specifications for waste oil quality and source
identification lest the collector mix incompatible sources or add
unwanted volumes to increase the volumes delivered.
  3.   To implement a continuing management function —

The activities, services and facilities which must be provided in a
total Waste Oil Recovery and Reuse Program include:

                a)  Collection
                b)  Receiving
                c)  Intermediate storage
                d)  Central storage
                e)  Processing
                f)  Product marketing
                g)  Non-recoverable waste oil
                    handling and disposal
                h)  Disposal of reprocessing
                    plant bottoms
                i)  Off-site process residue
                    disposal
                j)  Wastewater treatment
                k)  Dispatching
                1)  Analytical services
                m)  Computer operation for -
                    billing, processing, and
                    compliance


Management alternatives are presented in Table 28.

Each alternative for most of the cost centers that include private
participation requires monitoring.  For example,  if the collectors
get paid per gallon of waste oil, the product they deliver must be
analyzed and matched against specifications, or the original  waste
oil may be diluted with water or incompatible additives.
                                88

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At intermediate storage facilities, an appropriate sampling program
would have to be developed to ensure proper billing to sources and
reimbursement to collectors for delivered oil.

Each facet of the program must be analyzed from the special viewpoint
of ensuring receipt of the highest quality product possible within
the limits of the variability of the waste oils generated.

The two key areas that require further development are the analytical
techniques and computer programs.

Analytical Techniques

In all likelihood the range of quality of waste oil fron each source
would remain within reasonable limits.  However, it would be-, necessary
for the collector or processor and MES to be able to document this as
the program advances due to the direct impact on reimbursement, proces-
sing parameters, products produced, volumes incinerated and the actual
billing for each source.

Each collector should utilize a field sampling kit to obtain and
analyze samples from each source for comparison with specifications
and previous pickups.  This would provide a basis for expectations
for reimbursement, verification of reimbursement and focusing for
subsequent remedial or compliance actions by the source or by MES.

Sampling  and/or analytical facilities are required at each storage
site for  the above mentioned needs.

Each source identification and respective analysis should be logged
for subsequent comparison or reference.  This can be accomplished
with the  judicious use of a computer.


Computer  Uses

Dispatching collectors, compliance record keeping, billing, waste
oil segregation records keeping and assessment, data processing
and plant operations, non-recoverable waste oil operating conditions,
environmental data logging, economic analyses, sensitivity analyses  and
accounting are all functions which can be readily computerized.


 It is necessary to be able to utilize the computer in a real time
mode  such as for dispatching collectors for waste oil pickups in the
most  economical sequence or time frame.   It will also be  invaluable
for billing purposes and for process forecasting.  The judicious
use of a  computer program, and systems, will minimize program costs
and personnel  required for operations.
                                   91

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4.    All  waste oils are reprocessed or disposed of in an
     en vironmentally-acceptab 1 e manner —

     a)  Use as road oil.

     Tests performed by the Environmental  Protection Agency
     (EPA-R2-72-054, 1972) indicate that the use of waste
     oils for road  oiling  results in a significant potential
     for degradation of surface waters.  The characteristics
     of lube oils and the  modifications of various additives
     included in virgin lube oils are the antithesis of a
     good road oil.  Conclusions from the report indicate:

         1)  Although the  road  was oiled in excess of
             12 years, only the top one inch of soil
             had any oil  penetration;

         2)  From on-site  and lab investigations,
             approximately 75 percent of the applied
             oil soon leaves the road by flotation,
             following precipitation; and

         3)  High concentrations of lead were found
             in the runoff which detrimentally
             affected receiving waters.

 According to the Asphalt Institute, road oiling should be by the
 application of:

       "...heavy petroleum oil,  usually a slow-curing asphalt, to
       an earthen surface.   Under favorable conditions, three or
       more years of oiling treatments will change an earthen road
       into a stable, oiled road.  Repeated treatments reduce
       water absorption in the subgrade to a depth sufficient to
       develop a thickness of road structure that will carry
       light highway traffic throughout the year..."

       "The objective in all road oiling work is a firm,dustless
       wearing course mat and a strong  subgrade  layer which will
       not  become saturated with water."   (EPA-R2-72-054.1972).
  The economics associated with road oiling indicate that it is to
  the advantage of the users not to use waste oils.   Since oiling
  with waste oils has little if any stabilizing effect on the un-
  paved road, oiling must be continued indefinitely  and the roads
  must be regraded often.  The heavy use of this physically inferior
  product and the associated labor results in more expense to the
  user than using an asphaltic base oil designed for road oiling.
                                    92

-------
In addition to the above, the surface water and ground water
quality may be adversely affected by unnecessary contamination by
runoff.

In conclusion, Section VII.C of Water Resources Regulation 4.02,
Prevention of Oil  Pollution, should be revised to remove waste
oils "as a binder for unpaved roads".
                                   93

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                              SECTION  IX

                          IMPLEMENTATION PLAN
INTRODUCTION
This section proposes alternatives by which the State of Maryland may
proceed with a phased implementation of a waste oil  recovery system to
collect, reclaim, reprocess, dispose, and market re-refined oils and by-
products.  To the extent that it is practical, this  system provides for
restoration of used lubricants and other oils to their original  product
specifications, if this is desirable.  These re-refined oils would be
distributed within the State for use both by State,  county, and other-
public facilities and by private citizens, corporations, and commercial
operators.

A preliminary plan and schedule for implementation of such an oil recovery
program is included here.

The five basic alternatives shown in Figure  1  imply the setting of policy
by the State and definition by the State of those factors and parameters
of greatest significance.  Briefly, those factors requiring decisions by
the State are:

     1.   The extent of the program,

     2.   Transportation (State and/or private),

     3.   Disposal to land, incineration or other (process residues
          and/or oily wastes),

     4.   Road oiling with waste oils (control of composition and
          physical properties),

     5.   Raw materials -- waste oils (Shall waste oils froir, out-
          side the State be accepted at the MES Facility?  Shall
          the State cause all waste oil to be brought to the MES
          Facility?),

     6.   Products (e.g., fuels vs. lubes),

     7.   Distribution (Shall products be used only by State
          facilities?  Shall they be marketed within the State
          and/or externally?),

     8.   Marketing  (Shall the MES market the products?  Shall
          the MES create a marketing organization?  Shall the
          MES put products out for bid sales?  Shall the private
          firms market the products?),
                                   94

-------
     9.   Operation and Management,

    10.   Financing, and

    11.   Site location.


GENERAL PROGRAM OPTIONS

Five basic options exist for implementation and they are represented by
the diagrams in Figure 1.

Option I consists of disposal of waste oils without reprocessing.  The
exercise of this option requires no reprocessing facility for recovery
of fuel or lube oil base stocks.  On the other hand, the fraction of
this material which is potentially recoverable is lost to reuse.  This
option does require the construction of disposal facilities, e.g., for
incineration or land disposal, or management of the wastes not currently
picked up by existing haulers, e.g., burning at existing disposal sites.
Program management and partial collection and storage facets are also
required.

The Option II alternative includes all collection and management aspects
and export out of the State to existing re-refiners.  It is possible to
expect revenues from the sale of waste oil to the re-refining operators.
A partial marketing program is required, and disposal along the lines
indicated for Option I is a necessity for those oils not marketable to
existing re-refiners.

Option III is the burning cf waste oil as a fuel, e.g., at existing power
plants, and the incineration or alternate disposal  of waste oils.  This
option preserves partial reuse of waste oil for recovery of heat value
which Option I does not.  Evaluation of effects on  burner equipment and
air quality standards should be given further consideration.  A marketing
program to find uses for unprocessed oils is also a requirement, as well
as one of the basic Phase I needs.

Option IV, for the most part, includes the construction and operation of
processing and blending facilities ard supply of fuel oil.  It appears
certain, as has been developed in Section IV, that  a market exists for
use of all fuel oil products to Maryland State Government users, exclusively.
A marketing program is required.  Option IV preserves the ability to
recover Ihe maximum available waste oil reuse potential and to produce
higher products, such as lube oil base stocks at a  later date.  A signif-
icant marketing effort will be required to dispose  of higher products.
Implementation of this option will require the highest capital investment
of all the Options.

Option V requires a marketing effort directed to the major oil companies.
A disposal program is required in addition, such as that described in
Option I.
                                   95

-------
PROGRAM IMPLEMENTATION

A choice among the options is not required before implementation of the
program is begun.  All options presented have the collection, storage,
and program management needs in common.  This suggests that this portion
of the program could be pursued immediately while later phases of a poten-
tial program are being designed.  As such, a collection system operation
schematic is presented in Figure  5.  The compliance aspects of the
program include changes to regulations, a modified permit program, and a
logging system to maintain the required program data and information in
retrievable form.  The monitoring and surveillance include analytical
activities for storage sites and collectors and the waste oil quality
verification which will determine the fate of each load collected for
any of the options.  The collection system utilizes existing haulers
through a bidding process and with the use '/f the permit mechanism.  The
storage system uses existing tank storage capacity on a lease basis ^fter
evaluating the current needs for storage and determining the existing
capability of tank farms to meet environmental and safety standards.

A possible implementation plan based specifically on the chemical-
physical plant design is presented in Figure  6.  The plant storage
and processing facilities may proceed in three steps as indicated on the
figure.  Table 28 shows plant capacity data for the various phases shown
in Figure  6.
WORRP PROCESSING AND DISPOSAL ALTERNATIVES

Table 30 lists 22 alternative approaches for disposal of waste oils.  These
alternatives include the four basic options previously discussed.  These
alternatives can be rated during evaluation of alternatives to develop a
program suitable for the State of Maryland, or any other state.  Primary
advantages and disadvantages have been listed for each.

Coupled with such an evaluation, the range of products which might be
produced from a reprocessing facility (shown in Table 31) should be con-
sidered.
                                  96

-------
           Figure 5.  WASTE OIL RECOVERY AND REUSE  PROGRAMS

                OPERATIONAL CHART FOR COLLECTION  SYSTEM
                   Waste Oil Source requires pickup
                                   4-
                Phones MES State-wide number for  pickup
                                   4-
            MES operator acknowledges and  logs  in computer
                                   4-
            MES informs collector of pickups on future date
                                   4-
              Collector picks up waste oil  from source
                                   4-
          Collector takes sample at source  while  pumping  out
                                   4-
           Both types of sample and total  volume  are  verified
                        by source and collector
                                   I
           Source sends his completed program cards  to MES
                 Waste Oil Division for computer  log
                                   4-
                 Collector repeats at each  new  pickup
                                   4-
            Collector delivers load to MES  storage facility
                   with his completed program card
                                   4-
           MES samples truck contents and  verifies receipt
                             of contents
                                   4-
                       Samples sent for analysis
                                   4-
                         MES analyzes samples
                                   4-
              Compares sample with processing needs  and
                    general source characteristics
                                   4-
                  •*- <-•«-•«-•«- *-«-•«- < » >- ->->-»._».->_>-»._,.

MES determines need for compliance 4-  MES  sends data  to processing for
         or investigation          •*•    storage and  processing  needs
                                   4-                        ;
                 MES sends data to fiscal  for payment
                  to collector and fees from sources
                                  97

-------
             Figure 6.   PROPOSED MES WASTE OIL RECOVERY PLANT

                          IMPLEMENTATION PROGRAM
oo
£   40,000


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5   20,000
<
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    10,000
     8,500-
                                                       Phase III Completed
    60,000  T
    50,000  -
    30,000  --
                              Additional
                            Storage Capacity
                            Added to Increase
                         Capacity, if required
                       Phase II-
                 Max.  Capacity
                   Phase I
                                          Phase I  handles  all  crankcase
                                          oil  collections, some industrial
                                          wastes plus  disposal  needs.
           1974
                        1975         1976

                                 Calendar Year
1977
1978
                                  98

-------
                Table  29.  PLANT CAPACITY
PHASE I:
Basis:  Sequential Production, 8-Hour Day, 5-1/2 days/week
        Throughput ^  8,500 gpd
        Expansion of tank farm will permit increased
        capacity and operating time.
        Estimated maximum daily capacity  r-1  22,000 gpd;
        requires 80 percent increase in tankage.
PHASE II:
Basis:  Parallel Production, 8-Hour Day, 5-1/2 days/week
        90 percent stream factor
        Throughput r1  22,000 gpd
        Capacity  ^  36,500 gpd

PHASE III:
Basis:  Same as Phase II, except augmented storage capacity
        90 percent stream factor  -  continuous operation
        Capacity  -  maximum of  /->  60,000 gpd.
                            99

-------
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-------
Table 31.  MES WASTE OIL DISPOSAL FACILITY
           - PRODUCT SPECTRUM -
    1.  Fuel Oils
    2.  Pre-treated Lube Oil Stocks
    3.  Pre-treated Diesel Oil Stocks
    4.  Re-refined Lube Oils
    5.  Re-refined Transformer Oils
    6.  Pre-treated Hydraulic Oil Stocks
    7.  Sterile, Non-toxic Ash
    8.  Carbon Dioxide & Water Vapor
    9.  Pre-treated Gear Oil Stocks
   10.  Pre-treated Turbine Oil Stocks
   11.  Re-refined Hydraulic Oils
   12.  Re-refined Cutting Oils
   13.  Re-refined Quench Oils
   14.  Process Fuels
   15.  CaS04, CaCl2, Heavy Metal Ash
   16.  Solvents
   17.  Soap Stocks
   18.  Feed Additives
   19.  Process Feed For Others
   20.  Pre-treated Fatty Oil Stocks
                    103

-------
                              SECTION  X

                              REFERENCES

Ackerman, A.  W., "The Properties  and Classification of Metal-Working
Fluids", Lubrication Engineers (July 1969).

Association of Petroleum Re-Refiners, Letter Report (Feb.  11,  1970).

ASTM_Sp.ecja!  Publication 315, American Society for Testing Materials,
Philadelphia, Pennsylvania.

Bernard, H.,  "Embroiled in Oil",  Proceedings of Prevention & Control of
Oil Spills, Washington, D.C. (June 15-17, 1971).

Beychok, M. R., "Aqueous Wastes from Petroleum and Petrochemical  Plants",
Wiley (1967).

Bondi, A., "Physical Chemistry of Lubricating Oils", Rheinhold Publishing
Co. (1955).

Booth, G. T., "The Oil Company's  Partner in Proper Service Station Waste
Oil Disposal  - The Collector and Prerefiner", Pape r No._FEL-72-46,
National Petroleum Refiners Association, Washington, D.C.

Chansky, S. H.  and B.  C. McCoy, "Study of the Use of Waste Crankr^p Oil
to  Improve the Municipal Incinerator Combustion Process", EPA Contract
No. 68-01-0186  (August 1972).

Chemical  Engineering,  CE Cost  File,  Vol. XI, McGraw-Hill, N.Y. (Jan-Dec.1969)

Cleveland, D. M., "Reclamation of Industrial Petroleum Products",
Lubrication Engineering  (October 1950).

"Conversion of  Crankcase Waste Oil  Into  Useful  Products", National Oil
Recovery  Corp.,  EPA  Report No. 15080DBO, Bayonne, N.J., (March 1971).

Edie, L.C.,  "Traffic  Delays  at Tool  Booths", Journal of the Operations
Research  Society of America, 2, No.  2  (May  1954~T

Final Report  of the Task Force on Waste  Oil  Disposal , American Petroleum
Institute, New  York,  N.Y.

Gruse,  W.  A.,  "Motor  Oils,  Performance  & Evaluation", Rheinhold  Co.,
New York  (1967).

Hartung,  H. A.,  "Economic  Recovery  of Waste  Lubricating Oils", 30th Inter-
national  Water  Conference  of Engineers  Society  of Western Pennsylvania,
Pittsburgh,  Pa.  (Dec.  28-30,  1969).
                                     104

-------
Hoxley, L.  P., "An Overview of Planned and Current R&D on  Oil  Spill  Cleanup
Capability",  3rd Joint Meeting,  Inst. Inq.  Quim.  de P.R.  & AICHE (May  1970).

Kalichevsky, V.A., "Modern Methods of Refining Lubrication Oils", Rhein-
hold Publishing Co., N.Y.  (1938).

"Know Your Motor Oil", API No. 1507 (April 1971).

Lambrix, J. R., et al_, "The Implications of Heavy  Oil Cracking",  Chemical
Eng. Prog., 65 (Oct. 1969).

Lowther, H. V., "Lube Effects With Unleaded Gasolines", API Proceedings,
San Francisco (May 12-14,  1971).

"Lubricant Service Designations for Automotive Manual Transmission", Ameri-
can Petroleum Institute Publication (1960).

Mallatt, R. C., J. F. Brutsch and H. E. Simons, "Incinerate Sludge and
Caustic", Hydrocarbon Processing (May 1970).

Maryland Environmental Service Act of 1970, Annotated Code of Maryland,
Article 33B.

Maryland State Department of Natural Resources, Rules and Regulations,  No.
08.05.04.02.

"Oil Purification, Filtration and Reclamation", Lubrication (1947).

Perry's Chemical Engineers' Handbook, Fourth Edition, McGraw-Hill (1963).

Petrochemical Plant Effluent Treatment Practices,  FVJPCA Report No. 12020,
(Feb.  1970).

"Petroleum Facts and Figures 1971", American Petroleum Institute.

Peters, M. S. and K. D. Timmerhaus, Plant Design and Economics for Chemical
Engineers, McGraw-Hill (1969).

Product Data Sheets DG-2J4 and DG-2P2, Humble Oil  & Refining Co.

"Recovery and Reuse of Oil Extracted From Industrial Waste Water", Ford
Motor  Co., 23rd  Industrial Waste Conference, Purdue University (1968).

"Refining of Motor Oils", Lubrication  (1946).

Rek, L., "Combustion of Oil or Gas in Fluidized Beds", Proceedings, 2nd
International Conference on Fluidized Bed Comb us ti on , Publ... No.  AP-109  , EPA.

"Runoff of Oils  From Rural Roads Treated to Suppress Dust", Environmental
Protection Agency, Report No. EPA-R2-72-054, Cincinnati, Ohio (Oct. 1972).

Safety and Health Act of 1970 (84 Stat. 1593, 1600; 29 USC 655,657).
                                     105

-------
"Sales of Lubricating Oils and Industrial  Oils  and Greases  (1969)",  U.S.
Dept. of Commerce MA-29C(69)-1 (Jan.  1971) MH-29C(71)-1  (Oct.  1972).

Schilling, A., "Motor Oils and Engine Lubrication", 2nd  Ed.,  England,
Scientific Publication Ltd.  (1968).

"Separation and Characterization of Acid Sludge",  Armour Research  Founda-
tion, Report No.  ARF 38593,  Chicago,  Illinois (May 15,  1962).

Skallerup, R. M., "Industrial  Oily Waste Control", API,  ASLE.

Standard Industrial Classification Manual, 1972,  Executive  Office  of the
President, OMB, Supt. of Documents,  Washington, D.C.

State of Maryland, General Services  Administration, Scheduled Procurement
Listings (1972).

"Study of Waste Oil Disposal Practices in Massachusetts", A.  D.  Little,
Inc., Report No.  C-70698.

Swain, J. W., "Disposal of Spent Industrial Lubricants", National  Petroleum
Refiners Association, Pape r No. FL-72-4T.

Tromp, F. , "Activated Carbon for Regenerating Oil",-J.  Chem. Met. Mining
Soc., S. Africa 45 (1944).

Villanova University, Water Pollution Control Demonstration,  Grant No.
WPD-174-01-67.

Waste Oil Recovery Practices.  State-of-the-Art. prepared by Environmental
Quality Systems,  Inc. for the Maryland Environmental  Service  and the
Environmental Protection Agency (1972).

Waste Oil Reprocessing, Project No.  72-5, ESSO Research & Engineering Co.,
(Jan. 1973).

Whisman, M.  L., "Waste Oil Recycling Project B.4 Report", Bart!esvilie
Energy Research Center, Bureau of Mines, USDI (March 13, 1972).

Wood, W. J.,  "Petroleum Refining With Fuller's Earth", 1962 Convention,
Association  of Petroleum Rerefiners, Miami, Florida.

Worrell, S.  F., "Rejuvenating Turbine Oils", P owe r En g i n e e r i n g (Oct. 1969).

Zuidema, "The Performance of  Lubricating Oils", Rheinhold Publishing Co.,
New  York  (1959).
                                  106

-------
                       SECTION  XI

                        APPENDICES

                                                           Page
APPENDIX  A:
     Standard Industrial Classification Categories
       Receiving Questionnaire 	 108

APPENDIX  B:
     Accuracy of the Expression for Distance
       Between Sources 	 114

APPENDIX  C:
     The "Small" Base Plant 	 119

APPENDIX  D:
     Waste Oil Recovery Unit Process Evaluations 	 124

APPENDIX  E:
     Summary of Collection System Results (PUP-PIP) 	 137

APPENDIX  F:
     Pipe Line and Barge Transport of Waste Oils 	 160

APPENDIX  G:
     Determining the Size of an Intermediate Storage
       Storage Tank (1ST) 	 165

APPENDIX  H:
     Selection of Distribution Regions -
       Questionnaires 	 169

APPENDIX  I:
     Crankcase and Industrial Waste Oil Survey 	 175

APPENDIX  J:
     Network Models 	 184

APPENDIX  K:
     Summary of Cost, Revenue and Profit (CRP)
       Model Equations 	 221

APPENDIX  L:
     Summary of Cash Flow, Revenue, Profit (CRP) 	 226

APPENDIX  M:
     Spills of Oily Material to Baltimore Harbor 	 243
                             107

-------












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        ACCURACY OF THE EXPRESSION FOR DISTANCE BETWEEN SOURCES
The expression for distance between sources used in the collection
model is:
(11)                    d
                        z
     where:   Az  =  The area of the collection region

              mz  =  The number of sources in the region

This calculation assumes a row and column distribution of sources
throughout the region with equal distance between sources.  The dis-
tance dz then represents the orthogonal distance between adjacent
sources.  This is a conservative estimate in that it tends to over-
state the average distance between sources in a given region.  The
question as to the degree to which this calculation tends to overstate
distance is of interest but is impossible to answer in the absence of
exact knowledge of the distribution of sources over the region.
However, it is possible and illuminating to calculate the degree of
overstatement in a case where the sources are spread at random over
the region in question.  That is, the sources are located as if they
were dropped one  at a time onto the region's surface with any source
being'as likely to land one place as another on the surface of the
region.

Under these circumstances it may be shown that the probability of two
sources being within one segment of area within the region follows
the gamma probability law such that the probability of exactly two
sources being located within a segment of area, rmi , within the
region whose total area is Ami2 is:
                                 mzr
             f(r)  =
                                  115

-------
The expected or average area containing exactly two sources may now
be determined as:
  E(x)   =   /°f(r)dr  =
                                        on
                                        -
                                         m
The question now remaining is how far apart does one expect these
two sources to be within this segment of the region z.  Let the
area 2Az/mz have width W and height H.  Then if X represents the
distance of source one from the left side of the area and Y repre-
sents the distance from the bottom, the density functions for the
random variables X] and YI are:
                            W
fx <*!>  •
                                   elsewhere
               fy/y,)  -   1      0
-------
Define a random variable U such that U  =  Xo  - x  , the horizontal
separation between sources one and two.   men by convolution:
              yu)  = _/JVxi)fx2(u+xi)d>
-------
In the same way, the expected square of the  vertical  separation
between the sources is:

                          E(V2)   .   g!


     where:   V  =  Y2 - Y]
Now, the expected distance between the sources  is:


                   E(d)
It is known that the perimeter of a rectangle is minimized for a given
area when the length equals the width; i.e., the rectangle is a square.
Therefore, the distance E(d) will be less for a square than any other
rectangular configuration.  Looking at a square then,
                         E(d)       w ^
                            2        2A7
              But:         IT   =    —?
              Therefore:
             E(d)  -V4  ?    =      -817 W^
                       z  mz                V  mz
Thus, the expression:
overstates the average distance between sources by a factor of:
                                            1
                                2/3       TsTT
                                                     1.22
or some 22 percent.  Increased irregularity of distribution of sources
will increase the degree of conservatism of the estimate of dz used
in the collection model.
                                 118

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                         THE "SMALL" BASE PLANT
The full-scale processing facility which was developed conceptually during
the course of the project involves simultaneous processing of waste oils
under different treatment conditions.  It also would require fairly large
capital and operating expenditures.  As a possible first step in devel-
oping a full-scale processing facility, therefore, cost estimates were
made for a scaled-down facility based on:

     1.  Using selected elements from the full-scale plant.

     2.  Maintaining the same processing capabilities as the full-
         scale plant but at a reduced throughput.

     3.  Incineration of much of the waste oils (non-recoverable)
         which would have to be incinerated at a full-scale facility.

     4.  Reducing the necessary plant operating staff from 22 to
         17 men.

     5.  Operating 24 hours/day for about 330 stream-days/year.

The results which follow from postulating such a reduced facility are
presented in detail in the preliminary design report.  Briefly, through-
put is reduced to about 22,000 GPD of waste oil feedstock by taking  this
approach.  Obviously, the overall processing system is no longer compre-
hensive, and some selectivity can be manifest in accepting feedstock.
The following Tables,  33 and  34, contain brief summaries of capital cost
and net profit estimates for this "small" base plant.
                                  120

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            Table 33.   PRELIMINARY CAPITAL COST ESTIMATE

          FOR A "SMALL" MES WASTE OIL RECOVERY BASE PLANT*
       Basic  Process  Equipment  Costs  -- —  _  _  _ $   570,000
       Field  Materials  (75%)a   	     428,000

       Direct Material	-	$   998,000
       Direct Field Labor  (35%)   	     349,000

       Direct Costs   ---  	 $1,347,000
       Direct Tank Farm Costs   	     565,000**
       Indirect Costsb  	  	     721,000

       Bare Module Costc 	 $2,633,000
       Plant  Buildings01	-	     170.000

       Base Plant Cost	$2,803,000
       Site Development 	  _________     176,000
       Estimated Total Plant Cost  	 	 $2,980,000


       Estimated Working Capital ---------$  125,000
 *  Total costs estimated from "Rapid Calculation Charts", Chemical
    Engineering, Jan. 13, 1969 for carbon steel.  Does not include
    land costs.

**  Installed cost including tank foundations and pumps.

 a  Secondary cost element including piping, instrumentation, foun-
    dations and other conrete work, local steel, electrical  materials,
    paint, etc.

 b  Secondary cost element including construction overhead (field
    supervision, temporary field facilities, small  tools, etc.) and
    engineering and contractor fee (direct engineering labor, overhead
    office costs, etc.) and interest during construction, owners' costs
    and 1 month's startup.

 c  This "cost does not include site development, pilings, buildings
    or other offsite facilities.

 d  Laboratory, office, warehouse and shop space, fully equipped.
                               121

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         Table  34.  PRELIMINARY DESIGN NET PROFIT ESTIMATE
          FOR A "SMALL" MES WASTE OIL RECOVERY BASE PLANT

                          - Fuel Oil Option -
Estimated Capital  Cost:                     $ 2,980,000
22,000 GPD processing capacity plus  8,400 GPD of non-recoverables
      incineration
330 stream-days/year
                      transport costs recovered by truckers
Yield
-  -  -   330 x  22,000 x 0.78 = 5.7 x 106 gallons
Fuel  Oil  	 - 5.7 x 106 + 25% = 7.12 x 106 gal/yr
Disposal  Oils   	 8,400 GPD x 330 = 2.77 x 106 gal/yr
       Fuel  Price	12.2<£/gal.
       Disposal  ---------  10^/gal.
REVENUE
            Fuel Oils - -
            Disposal  - -
               - - 7.12 x 106 x $0.122 = $  869,000
               - - 2.77 x 106 x $0.10  =    277.000
                                 Total = $l,146,000/yr.
COSTS
      Equipment and plant  lease:   $168/year/$1000  of  capital
            investments*
      Base of $2.98'  x  106   implies  -  -  -  $500,000/year  fixed  charges
 *   Private communication for 15-year lease.
                                122

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      Table 34 (Continued).   PRELIMINARY DESIGN NET PROFIT ESTIMATE

            FOR A "SMALL"  MES WASTE OIL RECOVERY BASE PLANT



LABOR

      17 people @ $14,000/year 	 $238,000/yr.
      DLO @ 30%	-	   71,000
      G&A (M5%	-   36.000

                               TOTAL 	 $345,000/yr.


OPERATION

      Chemicals-- - $264/day  x  330 days -	$ 87,000

      Cutter Stock - - 1.42  x  106 gpy  x  $0.122  --  173,000

      Process Fuel	    9,000

      Power	   20,000

                                         Subtotal 	 $289,000

      Office G&A  @  10%	   29.000

                                            Total	$318,000


MAINTENANCE  @  2%  of Capital	$ 60,000


                  SUMMARY:

                  LABOR		$  345,000
                  OPERATION  	    318,000
                  MAINTENANCE 	     60,000

                           O&M Subtotal	$  723,000

                  LEASE	    500,000
                  INSURANCE  (3  1%	     30,000

                                  Total	$1,253,000

                  Sales Revenue	- - $1,146,000

                  Net Profit Before Taxes - - $107,000/year DEFICIT
                                 123

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                     APPENDIX  D
              WASTE OIL RECOVERY UNIT
                PROCESS EVALUATIONS
These charts depict the various processes which may
be used to treat waste oil.  Each is assessed with a
series of "Advantages" and Disadvantages".
                       124

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  Table 35.  REMOVAL OF GROSS WATER, COARSE SOLIDS & OTHER MATERIALS

                        HEAVIER THAN THE OIL
 Waste Oil
Settling
                            BS&W or
                         Process Sludge
 Clarified Oil  For
Further Processing
         Advantages

1.   Standard unit operation,

2.   Uses otherwise necessary  tankage
    for processing.

3.   Residence times easily
    adjustable.

4.   Low capital & operating costs
    compared to filtration and
    stripping.

5.   Performance demonstrated.

6.   Implementation possible in
    near future.
                      Disadvantages

             1.   Ineffective  for  very  small
                 particles  or neutral  density
                 materials.

             2.   Can  require  long  settling
                 times or heating  to be
                 effective.
                                  125

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        Table 36.   REMOVAL OF WATER,  SOLIDS & OTHER  MATERIALS

                         HEAVIER THAN THE  OIL
 Waste Oil
Centrifugation
                             BS&W or
                          Process Sludge
  Clarified Oil  for
"Further  Processing
         Advantages

1.   Already in limited use.

2.   Can remove small  solid particles
    & water droplets from oil.

3.   Requires less land area than
    settling tanks.

4.   Rapid processing rate compared
    to settling.
                      Disadvantages

             1.  Higher capital & operating costs
                 than settling and filtration.

             2.  Performance not well
                 demonstrated.

             3.  Requires heating or dilution
                 of oi 1.

             4.  Additional unit operation as
                 opposed to use of storage tanks
                 for settling.

             5.  Throughputs and residence times
                 not adjustable over wide ranges
                 of feed characteristics.

             6.  Not applicable to multi-phase
                 separation.

             7.  Will require additional testing
                 & evaluation for application to
                 wide range of feed.
                                  126

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           Table 37.  REMOVAL OF LIGHT ENDS, NAPHTHA AND WATER

                         (Between .5 and 5%)
Clarified Waste Oil
Stripping
Naphthas and Water-Free
Oil Product or Oil for
  Further Processing
                         Petroleum, Naphtha
                       & Small Amounts of Water
            Advantages

   1.  Demonstrated unit operation.       1.

   2.  Uses conventional  hardware.

   3.  Capital  & operating costs lower   2.
       than solvent extraction or
       adsorption purification.

   4.  Implementation  possible in        3.
       near future.
                    Disadvantages

               Direct  fired  heaters  for waste
               oil  service require special
               design.

               Such  heaters  are more costly
               than  comparable refinery
               facilities.

               Coking  occurs on furnace
               tubes and  in  the still  and
               requires frequent maintenance.
                                    127

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         Table 38.  REMOVAL OF ACIDIC COMPOUNDS, ADDITIVES & CONTAMINANTS

                     STABILIZED IN SOLUTION AND SUSPENSION
       Waste Oil
(Clarified  & Dewatered)"
      Chemical Treatment
Caustic Wash, Demu1 sification,
  Oxidation & Agglomeration
        (as required)
                                   Process  Sludge
           Purified Oil for
           Further Processing
             Advantages

      1.  Can be performed in same facilities  1.
          with basic settling operation.
      2.  Implementation possible in near
          future.

      3.  Minimizes sludge production by use
          of small or trace amounts of
          reagents.

      4.  Reagents are commercially
          available.

      5.  More applicable to wider range of
          feed characteristics than sulfuric
          acid treatment.

      6.  Capital & operating costs lower
          than solvent extraction.
                     2.

                     3.
     Disadvantages

Process control  is complex.

Performance not demonstrated.

Chemical  usage is dependent on
feed oil  characteristics.
                                       128

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               Table  39.   REMOVAL OF ADDITIVES & CONTAMINANTS

                    STABILIZED  IN SOLUTION AND SUSPENSION
Settled & Stripped
   Waste Oil
Sulfuric Acid Treatment
Purified oil for
Further Processing
                           Highly Acidic Oily
                             Process Sludge
              Advantages^

     1.   Demonstrated performance.

     2.   Implementation  possible
         in near  future.

     3.   Operation  of process  is
         straightforward and
         standardized.

     4.   Capital  and operating  costs
         lower  than combination of
         solvent  extraction and
         fractional distillation.
                     Disadvantages

                     Application  limited
                     or similar oils.
      to crankcase
                     Produces  large  quantities  of
                     highly  acid  waste  sludges.

                     Requires  sludge disposal program
                     more  costly  than solvent exT
                     traction  and distillation  process
                     residues.
                                     129

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                 Table  40.   SEPARATION OF HEAVY CONTAMINANTS

                 PLUS SPLITTING OF OIL INTO VARIOUS  FRACTIONS
Settled, Clarified
   & Stripped
   Waste Oil
Vacuum Fractionation
                                     1
                                Contaminated
                             Bottoms (Residues)
  Various Oil  Cuts for
   Further Processing
Including Stabilization
               Advantages

     1.   Uses available hardware.

     2.   Moderate capital and operating
          costs compared to solvent
          extraction.

     3.   Capable of producing a range
          of products.

     4.   Implementation possible in
          the near future.
                       Disadvantages

               1.  Produces  contaminated  bottoms
                  which must  be  disposed of.

               2.  High  temperature  operation
                  required.

               3.  Loss  of potential  products  in
                  bottoms.

               4.  Direct fired heater design  and
                  operating problems  as  with
                  stripping.

               5.  Near  term application  limited
                  to  additive and  heavy  metal -
                  free  feed, and  feed  free of
                  azeotropes.
                                       130

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       Table 41.  REDUCTION OF NITROGEN, SULFUR & OXYGEN CONTAMINANTS

                              WITH HYDROGEN
Settled, Clarified,
Stripped & Fractionated
Waste Oil
Hydro-fining
 Purified Base
Lube Oil Stock
                            H20, H2S, NH3, Metallic
                               Sludge & Carbon
             Advantages

   1.    Potential  for production
        of a highly purified base
        oil  stock.

   2.    Potential  of small  amounts
        of process  residues
           Disadvantages

   1. Unproven  commercial performance
      for waste oils.

   2. Requires  special cobalt-molybdenum
      oxide catalyst.

   3. Catalyst  is poisoned by carbon
      monoxide  and contaminants such
      as chlorine and heavy metals.

   4. May require large amounts of
      hydrogen.

   5. High pressure/high temperature
      process.

   6. High capital and operating costs
      for the basic hydrofining
      equipment.

   7. Necessary hydrogen plant also
      would involve additional
      capital and operating costs.

   8. Implementation is possible only
      after additional development.

   9. Process operation dependent on
      the nature of the feed oil.
                                    131

-------
        Table 42.  SELECTIVE EXTRACTION OF OIL AND CONTAMINANTS
Settled & Stripped
   Waste Oil
                      Solvent Extraction
                               Recovered Solvent
                                 & Waste Sludge
                     Fuel oil  stock
                      or refined
                     Base Lube Stock
   1.



   2.


   3.

   4.


   5.

   6.

   7.



   8.


   9.
    Advantages,

Demonstrated performance on
both full and bench scales
(limited on waste oils).

Solvent can be selected to
suit the feed stock quality.
        Disadvantages

1.  Requires additional stripping
   operations  for  product,  sludge
   and  solvent recovery.

2.  Requires sophisticated  process
   and  quality control.
Solvent is recovered for reuse.   3.

Implementation possible in
near future.

Concentrates contaminants.

Uses conventional hardware

Lower capital and operating
costs than adsorptive
purification.

Some solvents could be
produced by the plant.

Can be used to break emulsions.
    Can require long settling
    times in cases  where feed and
    solvent density values are
    similar.
                                   132

-------
             Table 43.  ADSORPTION OF METALLIC SULFURETTED,

         CHLORINATED & OTHER ADDITIVES PLUS ODOR & COLOR BODIES
Settled,
Clarified &
Stripped Waste
                  Adsorbent Treatment
                    Small Amounts of Light Vapors
                      due to Catalytic Action
                       Purified Oil  Slurried
                       with  Contaminated
                            Adsorbent
 3.

 4.
     Advantages

Demonstrated performance
in full scale operations
(clay).

Lower capital & operating
costs than hydrofining.

Uses conventional hardware.

High performance as a
finish step to remove
trace amounts of con-
taminants.

Implementation possible in
the near future.
         Disadvantages

1.  Requires  pretreatment  and
    subsequent filtration.

2.  Adsorbent requires  regeneration
    and/or  disposal.

3.  Heater  problems  similar to
    stripping.
                                   133

-------
       Table 44.   REMOVAL  OF  SUSPENDED &  SETTLEABLE  SOLIDS  FROM OIL
  Adsorbent Treated or
  Other Oil Containing
  Filterable Solids
Filtration
Oil or Base Oil Stock
                          Waste Clay, Carbon
                           or Other Sol ids
          Advantages
               Disadvantages
1.    Demonstrated performance in
     full  scale operations.

2.    Uses  conventional hardware.

3.    Implementation possible
     in near future.

4.    Applicable to a wide
     range of feed quality.

5.    Process operation and
     control is straightforward.

6.    Capital costs lower than
     centrifugation and
     sett!ing.
       1.  Adsorbent requires regeneration
          and/or disposal.

       2.  Not applicable to colloidal
          suspensions and some emulsions.
                                   134

-------
                    Table 45.  EXAMPLE PROCESS TRAIN
                                 Waste  Oil
Removal of Gross
Water, Coarse
Solids & Other
Materials Heavier
  than Oil
        i
                          BS&W or Process Sludge
Selective Extraction
of Oil and
Contaminants



oO IvcriL C-ALraULlon


Solvent Contaminated
with Insoluble
Residue or Bottoms
Separation of Oi 1
into "Solvent",
Hydrofinable and
Bottoms Fractions
                                   I
Vacuum Fractionation
Large Amounts of Bottoms,
plus Solvent Contaminated
with the Oil's Volatile
	Compounds	
Reduction of Contaminants
with Hydrogen Releasing
Same from Oi 1


1
Hydro-fining


HoO, H2S, NH3,
plus Metallic/
ravhnn "^1 iiHnp
                        Purified Base Lube Oil Stock
                     for Further Processing or Blending
                                   135

-------
            Table 45 (Continued).   EXAMPLE PROCESS TRAIN
           Advantages
         Disadvantages
1.    Can produce purified base oil
     stock.

2.    Process concentrates con-
     taminants.

3.    Provides a variety of products
     with one basic flowsheet.

4.    Solvent extraction may be used
     to break emulsions.

5.    Limited demonstrated perform-
     ance for waste oils.

6.    High performance as a finish
     step  (hydrofining) after
     vacuum distillation for
     production of a base oil stock.
 1.  Hydrofining requires
    specialized catalyst.

 2.  Limited to narrow range of
    waste oil types.

 3.  Capital & operating costs
    higher than acid/adsorbent
    plant.

 4.  Requires sophisticated solvent
    recovery loop to separate
    solvent from contaminants.

 5.  May require hydrogen-producing
    support plant.

 6.  High pressure/high temperature
    facility.

 7.  Complex process with dependence
    on comprehensive process and
    quality control.

 8.  Significant losses of potential
    product in residues.

 9.  Large amounts of oily wastes
    (particularly bottoms).

10.  Direct fired heater problems as
    with stripping.
                                   136

-------
                  SUMMARY OF COLLECTION SYSTEM RESULTS

                               PUP - PIP
Sensitivity analyses were run for the collection systems and transport
without intermediate storage (PUP) and with intermediate storage (PIP).

They included conditions that could be construed as "Worst" and "Best"
plus conditions that reflected "Good" engineering and institutional
judgment.  Values were given for each of the elements in the total
system to reflect the above three conditions and for annual pickup
volumes of 18, 19.8, and 22 million gallons per year.  These are indi-
cated in the tables preceding the respective PUP and PIP sections of
this Appendix.
                                 138

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-------
Table 56.  PIP SYSTEM NUMERICAL PARAMETERS

Capacity Local Vehicle - gal.
Local Vehicle Utilization Factor
Local Vehicle Overflow Factor
Speed in Region - mph
Local Vehicle -
Pumping Rate gal ./hr
Local Source -
Waiting Time hr
Local Vehicle -
Fixed Charge $
Cost/mi $/mi
Drivers/Vehicle
Labor Cost of Drivers $
Support Workers/Vehicle •
Labor Cost Support Workers $
Insurance $/yr
Local Operation -
Overhead Factor
1ST Site Development Factor
1ST Engineering Factor
1ST Fee Factor
1ST Set Back - ft
1ST Parking Lot Factor
1ST land Cost $/sq.ft.
1ST Constant A-10
1ST Constant A- 11
1ST Constant A- 20
1ST Constant A-21
1ST Operation & Maintenance Factor
1ST Life yr.
1ST Salvage Value Factor
Worst
2800.
0.24
0.67
10

6000

0.50

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1.00
7.06
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4.15
1000

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0.05
0.15
0.05
8.
0.0019
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0.0
0.3920
14262
0.0511
0.15
15.
0.05
Good
2800.
0.24
0.87
15

7200

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9100
0.10
1.00
6.50
0.0
3.55
1000

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0.05
0.15
0.05
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0.0019
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0.3920
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0.0511
0.10
15.
0.05
Best
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1.00
25

8400

0.17

9100
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1.00
5.93
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2.96
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0.05
0.15
0.05
8.
0.0
0.10
0.0
0.3920
14262
0.0511
0.05
15.
0.05
                  149

-------
Table 56 (Continued).  PIP SYSTEM NUMERICAL PARAMETERS

Long Haul -
Trailer Capacity - gal.
Trailer Utilization Factor
Trailer Overflow Factor
Annual Charge Trailer $
Cost/Mi. Trailer $/mi .
Support Workers/Trailer
Support Workers Cost $/hr
Tractor Utilization Factor
Tractor Overflow Factor
Speed mph
Annual Charge Tractor $
Cost/Mi . Tractor $/mi .
Cost Tractor Drivers $/hr.
Cost Tractor Support Workers
Support Workers/Tractor
Drivers/Tractor
Overhead
Insurance - Trailer $
Insurance - Tractor $
Waiting Time at Plant hr.
Pumping Rate at Plant gal./hr
Worst

6000.
0.60
0.67
3900.
0.0210
0.30
4.15
0.60
1.00
30.
10920.
0.10
7.06
4.15
0.25
1.00
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430.
1200.
0.20
10000.
Good

6000.
0.75
0.84
3900.
0.0210
0.20
3.55
0.75
1.00
40.
10920.
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6.50
3.55
0.0
1.00
0.10
430.
120C.
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12000.
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6000.
0.95
1.00
3900.
0.0210
0.10
2.96
0.95
1.00
50.
10920.
0.10
5.93
2.96
0.0
1.00
0.05
430.
1200.
0.05
14000.
                         150

-------











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              PIPE LINE AND BARGE TRANSPORT OF WASTE OILS


Pipe line transport is a technically viable alternative means of trans-
porting waste oils from the intermediate storage sites to the central
processing plant.  However, the transport of toxic and hazardous materials
via pipe line along with waste oil may present hazards both in cross-
contamination during segregation of the basic waste oil categories and
excessive corrosion.  For example, toxic wastes could be mixed sufficiently
with crankcase oil to cause contamination of a large fraction of the
crankcase oil being moved in the same line.

An analysis may be pursued after making certain assumptions.  If it is
assumed that the problem of cross-contamination is not a serious one,
and that the following conditions prevail:

     1)  All oily wastes are piped in same line,

     2)  Transport is from an intermediate site to plant,

     3)  Average annual system flow is 24,000,000 gallons
         of all waste fluids,

     4)  Average length of pipeline is 50 miles,

     5)  Flow takes place 24 hours/day, 330 days/year,

     6)  Five intermediate storage sites are used with separate
         lines from each to the plant, and

     7)  Optimum design pipe diameter is approximately 3" for
         peak use in later years.
Instantaneous flow rate is  2.4'0°0»000  ||5  =  5,300,000 gallons/year/line
                                 b      ^u                      (610 GPH).


            3" pipe --- 3 feet of right of way (25
-------
     Total  cost  less  pumping  station  =
     Pumping  stations   @   25%  **
50 miles  x  5,280 ft/mi, x  $8.50

$2,230,000

   557,500

$2,787,500
     Annual  D  &  I  (6%   &   20 years)    =   .087   x   2,787,500   =   $244,000/yr.
     Operating  expenses
$2,600/mi.      x  250 mi

$650,000/yr.
          TOTAL  ANNUAL  COST	$894,000
     Table  66  shows  the  variation  in  cost  with  volumetric  rate  in  the
     pipeline.
           Table  66.  UNIT COST OF PIPELINE WASTE OILS ***


Gals/Day
55,000
.10,000
15,000
20,000
25,000
40,000
60,000
70,000

Annual Volume
(Gal/Year)
1,820,000
3,600,000
5,460,000
7,280,000
9,100,000
14,400,000
21,600,000
25,200,000
Total Pipeline
Transport Costs
(4/Gal)
49.6
24.8
16.4
12.3
9.85
6.23
4.14
3.55

  *  R.  S.  Means,  "Building Construction  Cost Data".

 **  Based  on analysis  of Sohio Pipe Line Co., Annual  Report
     ending 12/31/72,  I.C.C.  #009395

***  Annual charges  assumed to remain approximately constant at
     $894,000 per  year.
                                162

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The cost factors of Table  66  may be compared with the cost of using
long-haul trucks (6,000-gallon capacity) to accomplish the same ends
as calculated using the PIP System Model.  The cost of using long-haul
trucks does not exceed 1.5<£ per gallon even using the most pessimistic
combinations of cost parameters.  Thus the use of pipelines for the
transport of waste oils does not appear economical  aside from other con-
siderations.

Barging is a viable transport alternative only in the case of oils
transported between the Eastern Shore region of Maryland and a reprocess-
ing plant located in the vicinity of a usable port, e.g., Baltimore.  The
cost of barging should then be compared with that associated with using
long-haul trucks (6,000-gallon capacity) to transport oil between the
Eastern Shore and a plant located in, say, the Baltimore Port region.
The PIP system long-haul trucking costs for this case range from about
1<£ per gallon under the best estimate combination of cost parameters to
over 4<£ per gallon using the most pessimistic combinations of cost para-
meters.   These costs compare with the barging costs of less than l/2
-------
                       Table 67.  BARGE COSTS
Assumptions:
          No split load - composition "uniform"
          Minimum pumping rate = 105,000 gal/hr
          Standard barge sizes used for this analysis:
                     840,000 gals, or 1,750,000 gals.

Rates:
          Washington to Baltimore ----- 25<£/bbl = 0.6<£/gal.
          Crisfield, Md. to Baltimore 	 19<£/bbl = 0.45^/gal.
          Cambridge, Md. to Baltimore - - - 15<£/bbl = 0.36<£/gal.
          Demurrage due to lost time at terminal is $70.000/hour
          for 20,000 bbl barge.
          Split Discharge Rates, e.g., Washington 10,000 bbl's,
          pickup, Crisfield 6,000 bbl's, Cambridge 6,000 bbl's
          would involve costs which lie between the rates shown
          above.
          Barge pump discharge pressure maximum = 125 psi.,
          Barge size = 240' x 50'  	 -  Tug = 90' long

There is a good probability that the load can be picked up within 10 days
notice.  Terminal cost is the function of storage volume.  However, mini-
mum is 20,000 bbl's with the added uncertainty of fill rate and wait time.
                                164

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      DETERMINING THE SIZE OF AN INTERMEDIATE STORAGE TANK (1ST)
Theoretically, the intermediate storage tank (1ST) in the PIP system should
be of the same capacity as the long-haul vehicle (IP).  Any additional
capacity is unused if the system works perfectly and therefore represents
an unjustified expenditure.    In practice, however, this will not hold
exactly.  Since the calculated delivery frequency of the local collection
vehicles (PUP) to the 1ST is an average frequency, the delivery rate is
bound to vary about the mean, and when the rate becomes higher than the
average by a significant amount, an 1ST tank of the exact efficient size
could be in an overflow mode.  Also, the IP system picking up the waste
from the 1ST and delivering it to the reprocessing plant may fall behind
schedule for any of a number of reasons.  Finally, in densely populated
regions, where the rates of PUP deliveries and IP pickups are high, the
mere traffic density may keep the system from operating at designed ef-
ficiency.  Therefore, it seems prudent to purposely design some excess
capacity into the tanks.

Even though the PUP's are scheduled in their deliveries, their arrival
rate will undergo variations which will appear random, particularly if
observed over short periods of time.  It has been established in a number
of situations that this sort of phenomenon follows the Poisson distri-
bution rather well'(Refs.: Student, Rutherford and Edie Geiger).  The
frequency of PUP deliveries at an 1ST in region z is:


                               X*arrivals/week
                             52

The rate of PUP deliveries in relation to IP pickups is:

                               r  =  ———
                                      VPUP

Then the mean number of PUP deliveries in the interval between IP pickups
is r, and the probability that k PUP deliveries will occur within this
interval is:

                           P(k,  -  -^-
                                166

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If a one-week excess capacity is accorded each 1ST tank, the probability
that the waste arriving during the interval

                                Vlp52
                                 X'z
weeks, will equal or exceed the one-week reserve capacity is:
                             r   = k=RPUP +

It would be desirable to keep this probability at or below 10 percent.   At
the ratio of Vjp/Vpyp = 2, the following probabilities may be calculated:
Average Number of
PUP Arrivals at
1ST per week
1
1
1
2
2
3
4
Total Annual
Waste Generation
Rate in Region z
145,600
145,600
145,600
291,200
291,200
436,800
582,400
1ST
Capa-
city
8,400
11,200
14,000
11,200
16,800
14,000
16,800
Weeks of
Excess
Capacity
1
2
3
1
2
1
1
Probability that 1ST
Capacity Will Be
Equaled or Exceeded
.3233
.1429
.0527
.1429
.0166
.0527
.0166
It is clear from the above that more than one week's excess capacity
is required to maintain the probability of an overflow at less than
10 percent in the case of regions that have low generation rates of
waste oil.  Also, in any region, the probability of overflow can be
maintained at a low level by providing additional 1ST capacity.

A suggested rule for selecting 1ST tank size, which maintains the
probability of an overflow below 10 percent and does not result in
excessive unused tank capacity is:

                            VIST         xz
                          12,000 gal. <145,000 gal./yr.
                          15,000 gal. = 145,000 to 440,000 gal./yr.
                         6,000+
                                52
440,000 gal./yr.
                               167

-------
It may be noted from the 1ST cost function that there is  a break  in  tank
cost such that there is a rapid drop in the cost per unit volume  for tanks
exceeding 50,000 gallons.  However,  it may be seen from the above dis-
cussion that tanks of larger than 50,000-gallon capacity  do not appear  to
be necessary.
                                 168

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                   SELECTION  OF  DISTRIBUTION  REGIONS

                           -  QUESTIONNAIRES -
A problem encountered in conducting and evaluating the survey was  the
establishment of a practical  yet precise method of geographically
locating the waste oil  generators.   Location by counties  appeared  to
be too imprecise;  location by cities lacked homogenity;  while
location according to such things as census tracts was too  difficult
to handle in a practical sense.   Consequently, the Postal  Service
zip code was chosen as  the basic geographical  location device for  the
survey.  Zip codes have the double advantage of being easily obtain-
able and commonly understood, and of being relatively precise indicators
of geographical location.  Moreover, zip codes offer finer locational
differentiation in densely populated areas than they do in  more sparsely
populated areas which was desirable in this case.   Each of the more than
700 five-digit zip codes were located to the nearest 10,000 geet by
means of the Coast and Geodetic Survey Northeast Quadrant Grid System,
and stored in a computer.  Following this, each recipient of a question-
naire could be located according to his zip code in terms of a north
and south grid system,  and such things as straight line distance con-
necting two zip codes was easily calculated.

As the study proceeded, it was found that location by five-digit
zip codes resulted in an overly-refined and cumbersome degree of
locational accuracy for most of the study's needs.  Therefore, all
of the zip codes within squares 20,000 feet on a side were combined
into a so-called Master Zip Code.  The Master Zip Code identifying
a Master Zip Code Region was simply the five-digit zip code of the
center of population mass within that region, or, in some cases,
the geographical center of the 20,000 foot square.  These Master Zip
Codes and their associated Master Zip Code Regions are displayed on
the map shown in Figure   7.  The Master Zip Codes and their
associated Master Zip Regions form the basic locational index used
throughout the MES Waste Oil Survey, and are given in Appendix A.

Even the Master Zip Regions were found to be overly definitive for
purposes of the waste oil collection and distribution models, in that
the Master Zip Regions produced solutions requiring unrealistically
small fractions of trucks and other non-divisible commodities to ser-
vice an individual Master Zip Code Region.  This problem was alleviated
by combining several Master Zip Code Regions into one of five Collection
and Distribution Regions.  The geographical extent of the five Collection
and Distribution Regions and the included Master Zip Code Regions are
shown in Figure  2  (page 21).
                                 170

-------
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                                                   171

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Figure  8.  INDUSTRIAL  WASTE OIL SURVEY QUESTIONNAIRE
                                 INDUSTRIAL
                              WASTE OIL SURVEY


1. Type of faolity (check appropriate box)
I marine service
railroad equrpme
j metalworking
power generating
other (please de





Your Zip Code
I 1 aeromotive service
i si— — J
nt service chemica manufacturing
j 	 food processing




2. Average monthly oil c
Dgear and t racism*
J 	 hydraulic oils
D water soluble cu
pnsumption. (check apprc
sion
2 2
2 a
ting oil
straight cutting oils
14 1.0
turbine oils
other type(s) of
« i ,. ,..,
other (please de
<> £
oils
S 2
cnbe)
pr.ate box and estimate usage rate).




gallons/month





















gallons/month
gallons/month
gallons/month
gallons/month
gallons/month
1





-Id ,LLLiJ .
3 Waste oil generated
hydraulic oils
D water soluble cu
straight cutting
turbine oils
D other type(s) of
other (please ce




1 S
: o
ttmg oils
2 S
3tlS
} 0
1 S
oils
<• 0
You







1






















r SIC Code

gallons/month
gallons/month
gallons/month
gallons/month
gallons/month
gallons/month







4, Do you refine or pun
D gear and transm
hydraulic oils
D water soluble ci
straight cutting
S )l 	 I
D turbine oils
other type! s) o
other (please de
y waste oils and reuse th
issiort oils
i. S
5 0
tting oils
oils
i o
l i
oil
7 0
m row?



























gallons/month
gallons/month
gallons/month
gallons/month
gal Ions/ Tionth
gallons/month




                        172

-------
Figure   8  (Continued).     INDUSTRIAL   WASTE   OIL  SURVEY   QUESTIONNAIRE
                 H  I
                5.   How are waste oils not being purified and reused presently being disposed of?

                                        picked up by collector

                                        gallons/pickup
                     i si	1	1	L	1

                             , J    I    | pickups/year

                                                                gallons/month
D burned                 |   |
                    2 2<	L_
                6    Do you have holding (storage) tank facilities for waste oiP


                                                                gallon capacity
                                      J      281	1	1	1	1
                     if yes, please describe	
           r>
         ?71	1      28
                 7   Do you segregate waste oils by type?
                      t yes, please describe  ,
                8   Do you purchase reclaimed or re-refined oil'
                        Dyes             I no    If yes,
                                3 si	1          ae
                                            gallons/month
                     Pleasedescirbe use
                 9   IL waste oils are picked up by a collector, please give name and address of collector
                     What is cost of pickup? 	
                     I f collector pays you, how much is paid?
                                                        . (cents/gallon)
                                                        . (cents/gallon)
                10.   Are your current arrangements for storing, handling or disposing of waste oil satisfactory?
                     If not, what improvements would you like to see made?
               11     Any additional comments you might have are invited
                     Upon completion, please forward m the enclosed envelope to

                                    ENVIRONMENTAL QUALITY SYSTEMS, INC.
                                           6110 Executive Blvd  Sum 760
                                             Rockvilto, Maryland 20852
                                                        173

-------
      Figure  9.     WASTE   OIL  SURVEY  QUESTIONNAIRE
                                                         WASTE OIL SURVEY
 1. Tyoe of facility                  Your Zip Code


          gasoline service station
                                             i


          fleet service/repair
                                             1

          gasoline truck service
          diesel bus service
                                            2 1
                                                      diesc! truck service
                                                      propane bus service
          non-highway vehicle or construction equipment service



          other, (please describe!	
 2 Approximate number of oil changes performed per month
 3 Approximate average volume of oils sold per month (includes transmission oil, hydraulic oil, etc)


                            total gallons/month
28	
                            percentage of above resulting from oil changes
                            gallon s/'month
               il disposed of at present7 (please check appropriate boxes)


                            picked up by collector



                            gat Ions/pick up



                            pickups/year



                                                        gallons/month
                                                        gallon capacity
7  If your waste oil is picked up by a collector, please give name and address of collector
   Cost of pickup (cents/gallon}	


   If collector pays you, please describe payment (cents/gallon)_
   Are your current arrangements for storing, handling, or disposing of waste oil satisfactory' If not, what improve

   ments would you like made*
9  Any additional comments you might have are invited
  Upon completion, please forward in the enclosed envelope to
                        ENVIRONMENTAL QUALITY SYSTEMS, INC
                                6110 Executive Blvd. Suite 750
                                  Rockville, Maryland 20852
                                             174

-------
               CRANKCASE AND INDUSTRIAL WASTE OIL SURVEY
The responses to the automotive waste oil  survey were tabulated for
each of the Master Zip Code Regions.   An example of the tabulations
of the response received from one Master Zip Code Region (Master Zip
Code 20760 - Gaithersburg) is shown in Table 68.  It may be noted that
70 Survey questionnaires were sent to retailers of gasoline in this
Master Zip Code Region, and 32 questionnaires were returned, for a
return percentage of 45.7 percent.

Down the left side of Table 68 are listed the quantitative questions
contained in the questionnaire.  Reading to the right, on a line with
each question, are tabulations of the answers to each question.
First appears the sample low.  This is the lowest value reported in
any responses to the question.  Following the sample low is the sample
high, the highest value reported in any response to that particular
question.  The sample total follows to the right and is simply the
total of all responses to the question.  The number of replies is the
number of replies received to that question.  Note that the number of
replies to any one question may differ from the number of whole
questionnaires returned.  The sample average is the sample total
divided by the number of replies.  The sample standard deviation falls
under the next column heading,"Sample Std. Dev." and is a measure of
the variation among the replies received to that question.

The estimated population total is a statistical estimate of what
the sample total would have been had every questionnaire recipient
in the Master Zip Code Region responded to that question.  The
estimated population total is calculated by multiplying the sample
average by the number of surveys sent within the Master Zip Code
Region.   As is the case with all of the estimates of population
characteristics, this assumes that the replies of that portion of
the population that did respond to the questionnaire are typical
of those that the non-responding portion would have made had they
responded.

The right most column on Table 68shows the estimated standard
deviation of the estimated population total "Std. Dev. of Est. Pop.
Total".   This is an estimate of the precision of the estimated
population total.  The difference between this statistic and the
sample standard deviation is worth noting.  Whereas the sample
standard deviation is a measure of the variations experienced in
the replies received, the estimated standard deviation of the
estimated population total is a measure of accuracy of another
                                 176

-------
statistical estimate - specifically the estimated population total.   If
the proportion of replies is small  and a great deal  of variation is
experienced in those few replies that are received,  the estimated popu-
lation total is likely to be off its true value, and the estimated
standard deviation of the estimated population total will  be large.
Conversely, if a high proportion of replies is received to the question
of interest and little variation is experienced in those replies, the
estimated population total is likely to be very accurate,  and the
estimated standard deviation of the estimated population total will  be
small.

Some of the line descriptions on the left side of Table 68 do not corres-
pond to specific questions of the questionnaire but rather are derived
from combinations or manipulations of the responses.  The first such line
description, entitled "Blowby and Leakage Loss (34%)", is the value  for
consumption indicated by A. D. Little in a study prepared for the State
of Massachusetts.  This value was used to compare with the values obtained
by the Maryland Survey which showed much higher rates of consumption.  The
Maryland value is also substantially different than the value for con-
sumption of 50 percent of the combination of automotive and industrial
lubricants given in the American Petroleum Institute study, "Final Report
of the Task Force on Used Oil Disposal".

Following blowby is a line description entitled "Total Recoverable as
Waste (66%)".  These two lines, therefore, are the result of multiplying
the answers to Question Three of the survey by 0.34 and 0.66, respectively.
The answers received in Question Four of the survey, "How much waste oil
do you accumulate per month on the average?", are generally much less
than 66 percent of the quantities of oil sold.  In the example shown in
Table 68 and in Table 69, "Automotive Waste Oil Survey" results, the
extrapolated "Actual Waste Oil Accumulated" is only 34 percent of the
oil sold.  This apparent discrepancy can be interpreted in a number  of
different ways, either:  1) more than 34 percent of the automotive crank-
case oil is lost due to blowby and leakage (some independent studies show
this to be the case);  2) the quantities of oils sold are overstated by
the respondees to the survey;  3) the amount of waste oil  accumulated by
the respondees is understated; or  4) some combination of 1), 2), and 3).

Though it cannot be stated as a conclusion, it is felt that, for the
above reasons the volumes of automotive waste oil that can be affected
will probably be greater than the volumes extrapolated from the data
recovered in the survey.

Following the line description for Question Six ("Do you have holding
[storage] tank facilities for waste oil?") of the survey, are three  lines
showing information that is derived from answers to Questions Two through
Six of the questionnaire.  The first of these lines is entitled, "Ave.
Max. Pickup Freq-Pickups/Yr".  This statistic is calculated by dividing
12 times the reported amount of waste oil accumulated per month by the
reported waste oil storage capacity.  This provides an indication of the
number of times waste must be collected from a source over the course of
                                  177

-------
a year and is an important consideration in structuring the collection
network.  The next line description, entitled, "Ratio of waste oil  accum
to oil sold", is the ratio of the answers to Question Four ("How much
waste oil do you accumulate per month on the average?") and Question
Two ("Approximate number of oil changes performed per month?").  The
line entitled, "No. of times oil changes x 1 gal. = gal. accum.", is the
number of times the assumption that each oil change produces one gallon
of waste crankcase oil would be consistent with information reported on
the survey questionnaires.  In the example of Table 68, this is seen to
be the case in 5 percent of the responses.

Tables 69 and 70 compare exactly with Table 68 except that Tables 69 and
70 tabulate the overall, State-wide answer's to the questions contained
in the survey of automotive waste oil.  Here it may be noted that the
State-wide response to this questionnaire was 41  percent or 1,675 ques-
tionnaires returned out of the 4,077 sent.  The estimated total amount
of waste oil accumulated per month by gasoline retailers is 459,640
gallons, which equates to 5,515,680 gallons per year.

Questions Seven, Eight, and Nine of the automotive waste oil questionnaire
were not posed in such a manner that their answers followed a rigid format.
Accordingly, their answers were not amenable to computer processing.
These qualitative and variable form answers were read and analyzed by
members of the study team and the results were used to provide background.
                         INDUSTRIAL OIL SURVEY

An example of the survey results for one SIC code (355 - Special Industry
Machinery Manufacturing) within one Master Zip Code Region (21055 —
Pikesville) is shown as Table 71.  The description lines for the Indus-
trial Oil Survey results are self-explanatory or the same as for the
crankcase survey and the columnar headings are the same as those used in
presenting the results of the crankcase oil survey.

Table 72 is an example of the results of the Industrial Oil Survey results
for the Pikesville Master Zip Code Region, summed across all SIC codes.
It may be noted that sample totals, averages, etc., are not shown in
Table 72.  Such statistics tend to lose their meaning after stratified
combination has taken place.
                                   178

-------

















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                                                    180

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                             NETWORK MODELS *
THE PUP COLLECTION NETWORK

This discussion describes the development of that part of the model
which generates the cost of pickup and delivery using local  collection
trucks to deliver waste oil to the reprocessing plant (PUP system).

The cost of picking up waste in region z and delivering it to the plant
in the same vehicle as used for collection (PUP) is:
(1)
    CPUPz   =  DCPUPz
                           OH
                                              PUPz
     where:
             DC
               'PUPz
               PUPz
             OH
               PUPz
Overhead Cost
     =  The annual  cost of picking up waste in
        region z and delivering it to the plant
        for processing ($/yr).

     =  The annual  direct cost  of operating the
        pickup system ($/yr).

     =  The annual  overhead cost associated with
        operating the pickup system ($/yr).
Cost of overhead is estimated as a fraction of the direct cost.  Let
this fraction be 0 .   Then:
(2)
(3)
     where:
     and:
OH
PUPz  =  0PUP
 0
  PUPz
 PUPz
      =   The  overhead  factor  for  the  PUP  system;
  *  Refer to Tables 46 and 56 (pp. 139, 149 and 150) for the
     "PUP and PIP System Numerical Parameters".
                                 185

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Direct Cost

Direct cost of operating the PUP system is:


(4)      DCPUPz  =  EpuPz  +  CLPUP2  +  INSPUPz


     where:    E      =  The cost of the equipment required for
                 upz     operating PUP in region z ($/yr).

              CLpypz  =  The cost of labor for operating PUP in
                         region z ($/yr).

             INSpnp   =  The cost of insurance on equipment used
                 u       for PUP in area z ($/yr).

The collection system model was applied by dividing the state into a
number of mutually exclusive geographical regions and operating both
the PUP and PIP models to pick up the waste pil generated in each region.
Then, with respect to a particular region, the system incurring the
least collection cost is the preferred system for that region, and the
preferred statewide system is the aggregate of preferred regional systems.

The factors that determine preference for PUP or PIP within a particular
region are:  distance from the plant, volume of waste oil  generated in
the region, and the waste oil storage capacity available at the local
sources within the region.   The farther a region is located from the
plant, the more economical  the PIP system becomes with respect to PUP.
This stems from the fact that when long transit distances  to and from
the plant are involved, the local collection vehicles of the PUP system
spend a great portion of their time in transit so that the larger long
haul tractor-trailer combination of the PIP system becomes more attrac-
tive, despite the added cost of the intermediate storage tanks.
Increased volume of waste oil in a region also has the effect of making
the PIP system more attractive, as does small storage capacity for
waste oils within a region.  Both of these factors tend to increase
the time that must be spent by a driver on the local collection circuit
and the time spent in transit to and from the plant by local collection
vehicles.

In some cases it may be found that PUP will be more economical than PIP
in a region located further from the reprocessing plant than another
region in which PIP is the more economical system.  This situation
occurs when the volume of waste oil and pickup frequency in the more
remote area is not sufficiently high to justify the PIP system despite
the relatively distant location of the region.  When this anomaly
occurs, it indicates that the more remote PUP region should be combined
with the closer PIP region to form one local collection region.  This
                                   186

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allows the local  collection vehicles from the remote PUP region to take
advantage of the  already justified intermediate storage tanks located
between the region and the reprocessing plant.

Both the PUP and  PIP models produce fractional  answers to the number of
local collection  and long haul  vehicles required.   Although obviously
not realistic, the fractional  number of vehicles provides more insight
into the economics of the problem than does an  answer in which the
number of vehicles required is  rounded up to the next whole number.
First, fractional numbers of vehicles provide an insight into which
regions should be combined with each other from larger, more realistic
collection regions.   For example, two adjacent regions, each requiring
less than one-half of the capacity of one local collection vehicle
should realistically be combined into one region that would utilize
the capacity of one whole collection vehicle.  Secondly, fractional
numbers of collection and hauling vehicles required provide insight
into the "do in-house" or "contract out" decision that must be made.
For example, there may be arguments against combining adjacent
collection regions even though  the individual regions require only a
small part of the capacity of one collection vehicle and/or long haul
combination.  In  such a case, contracting out for the collection and
hauling function  is obviously attractive from an economic standpoint
since it permits  the State to purchase only that amount of capacity
it needs.

The model can also be run with  a provision that all vehicle numbers
are rounded to produce an integer answer should this be desired.

In application, the State was initially divided into the 45 master zip
code regions (as  described in the section on waste oil surveys)and the
PUP and PIP systems  operated competitively within each region.  These
collection areas  turned out to individually utilize only a small  frac-
tion of the capacity of one collection vehicle, or, in the case of the
PIP system, of one collection vehicle and one long haul tractor-trailer
combination.  Therefore, it was more realistic to combine these small
regions into a few larger collection regions.  Five regions were chosen
as being of realistic size and geographical homogeniety.  These are
portrayed graphically on the outline map of Figures 2. and 1.

Equipment Cost

Cost of equipment required to operate PUP in region z is:


(5)    E      =  NpUp2FCpUp  +
     where:    ND     =  The number of vehicles required to operate
                HUPZ     the PUP system.
                                   187

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                      =   The fixed annual  charge  for operating  a
                         local  collection  vehicle required to support
                         PUP in region z ($/vehicle  year).

              Mlpyp   =   The cost per mile of operating a  PUP
                         vehicle ($/mi).

                      =   The total  distance that  must be traveled to
                         make one pickup from all sources  in  region  z
                         and deliver the waste oil  picked  up  to the
                         processing plant  (miles/circuit).
              FREQZ   =   The average frequency at which waste must be
                         picked up from sources in region  z,  if
                         holding tanks are collected only  when full.

Distance Traveled by PUP Vehicle in One Collection Circuit

Let:           CAPZ1-   =   The holding capacity for waste of source  i  in
                         region z (gallons).

                 XZ1-   =   The average quantity of waste generated by
                         source i in region z, within a year  (gal/yr).

                  z   =   The number of waste  oil  sources in region z
                         (sources).

Then the average holding capacity in region z is:


(6)            CAPZ   =   —L  Y~  CAP,.-
                           mz   £r    Z1

The interval  at which source i  must have its  waste collected  is:

                             CAP_,
(7)             INT    -         Z1
                   zi

The frequency with which source i must have its waste collected is;


 (8)

The average maximum pickup interval in region z is:


                 INTZ  =  J- X INTZ1-
                          mz i = i
                                   188

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And the average minimum pickup frequency in region z is:

                            mz
c\n\           FREQy  =  — 5! FREQzi
*   '                     m7 v^i

                                                 2
Let:              A   =  The area of region z (mi )

                  dz  =  The average distance between sources in
                         region z

Then an approximation for dz is (see  Appendix B):
(11)
                           mz
Let:             RZD  =  The distance between the center of mass
                         in region z and the plant

Then:

                                    +  (Yz-Yp)2]l/2
     where:   Xz,Xp   =  The x locations of the center of mass of
                         region z and the plant, respectively.

              YZ,Y    =  The y coordinates of the center of mass
                  p      of region z and the plant, respectively.

During one collection circuit a local pickup vehicle may collect
from Vpyp/CAPz sources, on the average.  Then, if the capacity of
the local collection vehicle, Vpyp, is greater than the entire
holding capacity of the region, one vehicle may collect wastes
from all sources.  However,  if:
                     Vpup  <  CAPzmz

 the vehicle must make more than one trip to collect wastes from  all
 of the sources.  In fact, it must make:
 (13)                            CAPzm7
                                 VPUP

 complete  trips  to  collect  all  of  the  waste.
                                  189

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The total distance traveled between points during a collection
circuit by one local  collection vehicle is:
(14)                        d   [
                             z    CAP
and empirical evaluations have shown that about 3dz additional
distance is traveled in initial and final positioning within a
region.  Therefore, the average distance traveled by a local
collection vehicle within a region during the course of a collection
circuit is:

                              VPUP
(15)                     dz  [=_  + 2]
                          z   CAPZ
                          VPUP  <  CAPA
      and,
      If.                 Vp(Jp  >


These. expressions for distance traveled within a region during a
collection circuit assume a uniform row and column distribution of
sources within a region z.   If the deviation from uniformity is high,
the expression,
(11)
will overestimate the distance between sources.   Appendix C compares
this expression for dz with the expected dz in the case of a random
distribution of sources.

3d  was determined experimentally as a factor representative of the
additional distance a truck must travel to begin and end work in com-
pleting a circuit; e.g.,  going to and from an overnight truck parking
area.
                                  190

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The distance traveled between region z and the plant during each
collection circuit is 2R  .   Therefore, the total distance traveled by
one local collection vehicle during one collection cycle is:
                                            if Vpup
      and,


(18)       <{Fc7d>7+2)    +  2FcDZRZD J.    if Vpup

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Time Required for One Collection Circuit

In this section are derived expressions for the time required to complete
one circuit collection from each source in a region, using the collection
vehicle to deliver to the plant.  The circuit time is comprised of time
spent traveling, time spent pumping and time spent waiting, hooking up,
unhooking, etc. at each source and at the plant.

The time spent traveling per circuit is:
(21)


and:
(22)

CAP2mz f Fczdz
VPUP ISLPUPZ

Fczd?(m2 + 2)
SLPUPz

( VPUP + 2) +
CAPZ
if Vpup <
+ 2Rp/Cpz
SRpupz
if VDI,D >
2RzpFcpz
SFPUPz
CAPzmz


CAP mz
       where:   SL      =  The average speed of the collection
                  PUPz     vehicle within region z (mi/hr).

                SRp,|p   =  The average speed of the collection
                    Pz     vehicle between region z and the
                           plant  (mi/hr).

  The  total time spent pumping during one collection circuit and at the
  plant is:
  (23)
                               2m7CAP
                                    z
                                PRPUP

        where:     PRnn    =  The  pumping  rate  of  the  collection
                    PUP     vehicle  (gal./hr).

  Time spent waiting is:
                         mzCAPz
  (24)          mzws  +  ~i	~  Wp    if VPbP <  CAPzmz
                          VPUP

        and,
                                 192

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  (25)
                                                 CAPzmz
        where:     w    =  The average waiting  time  at  a  source
                    5      (hrs/visit).

                   W    =  The average time at  the plant
                    p      (hrs/visit).

The total  time required  to  complete one circuit may now be calculated
as:
(26)     Tpyp
                         (m2  +  2)  +  2RzpFcpz
                                      SR
                                        pupz
                                   •}•
                        2mzCAPz  +  m w   + vi
                                                  1
                         PR
                                     zws   T  "p    8760   '
                           PUPz
         and
                                if Vpup  >, CAPzm   ,
(27)
PUPz
[cAPzmz  f1
  VPUP  V
                            SLPUPz
                                            2)   +   2R7pFcpz
              2mzCAPz

               PRPUPz
                                               m CAP
                                                 V,
                                                  PUP
                                                            1
                                                           8760
                               if V
                                   PUP
     where:
              8760
                        The constant required to convert hours  into years,
                                 193

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The Number of Local  Collection Vehicles Needed Under the PUP System to
Service a Region, z.

The number of vehicles needed to service a region z may now be calcu-
lated by dividing the time required to service all  of the sources in
region z by the required interval at which these sources must be ser-
viced.  Therefore,
(28)
                    N
                    w
                     PUPz
     where:   N
               p,.p
                  2
                         The number of vehicles required to
                         service region z.
But this assumes that the vehicles are available for use 24 hours per
day and that, on the average, a source is serviced just as the waste
holding tank is full.  It seems reasonable to assume that sources can
be serviced no more than during some fractional  part of each day, and
that a collection safety factor should be applied to reduce the number
of times a vehicle must be dispatched on an emergency basis to a
source to prevent its waste holding tank from overflowing.  Provision
may be made for these allowances by computing Npypz as:

                                  T

(29)                Npupz  =
                                   PUPz
      where:    y     =   The utilization factor for the vehicles.
                PUP
                            overdesign factor
     It may be noted in this and subsequent expressions that a small
interval (INTZ) and the corresponding large frequency (FREQ^) tends
to increase the cost of- the collection system; in other words, make
the model more conservative.  In this interest, the following compu-
tation for FREQZ was used in actual application of the model:
(30)
             FREQ,   =  max {-I  E FREQ . ;  i x_,/Z CAP..}
                 z           mz  i     zi    i  ZT 1    zi
                                  194

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Sufficient information is now available to compute the equipment cost
(Ep,,p) for the PUP system in accordance with expression (5).


Cost of Labor

The cost of labor may be calculated, on an annual  basis, as the time
required to make one circuit, multiplied by the frequency with which
the circuits must be completed; times the hourly labor rate; all
multiplied by the number of workers required to support one local
collection vehicle.  Thus:
(31)     CLpupz  =  [Tpupz FREQZ]  •   [NDpLJpLDpUp+LSWpup] (8760)


      where:   NDp||p  =  The number of drivers/vehicle.

              NSWpyp  =  The number of support workers/vehicle.

               LDpyp  =  The hourly labor cost of drivers ($/hr).

              LSWnnD  =  The hourly labor cost of support workers
                 PUP     ($/hr).

It may be preferable to have more than one driver per vehicle for
training and other contingency purposes.   However, it should be remem-
bered that the hourly labor cost includes costs accrued due to sick
leave and vacation times normally encountered.  Another equivalent
computation of labor costs that may be used is:
(32)     CLPUPZ  •  NPUPZYPUP(NDPUPLDPUP+NSUPUPLSUPIJP> (8760)
Insurance Cost

The total cost of insuring the local collection vehicles is a constant
charge per vehicle.  Thus:
(33)                        INS
                               pupz
      where:   INS     =  The cost of insuring a local collection
                  PUP     vehicle.
                               195

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Overall  PUP System Cost

All of the components necessary to compute the total  annual  cost for
operating the PUP system within a particular region,  in accordance
with expression (1),  have now been developed.   Costs  for all  regions
using the PUP system may be calculated by summing over z.   Thus:
(34)
                            PUP
                                       PUPz
Should separate PUP systems be used to collect different types of
waste, the elements of the cost equation developed thus far should
be appended with another subscript j for the jth category of
wastes and:
(35)
                                        PUPjz
(36)



(37)
                           CPUP   =  ? E CPUPjz
                                     J ^
                           CPUPJ  =  z CPUPjz
                                     J
                                  196

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          Table  73.   TABLE OF SYMBOLS FOR THE PUP SYSTEM
PUP SYSTEM:    A system whereby local collection vehicles pick up
               wastes at the sources and deliver the wastes to the
               reprocessing plant.

               The annual operating cost for the PUP system in
               region z.  ($/yr.).

DCp.jp :         The annual direct cost of operating the PUP system
               in region z.  ($/yr.).

OHD1ID :         The annual overhead cost of operating the PUP system
  HUHZ         in region z.  ($/yr.).

0pup:          The ratio of PUP overhead to PUP direct costs.


                    0PUP  =  °HPUPz/DCPUPz  f°r a11 Z'
               The annual operating cost of equipment required to
               support the PUP system in region z.  ($/yr.).

               Labor cost for operating PUP in region z.  ($/yr.).

INSp..p :       The annual cost of insurance on PUP vehicles in
   KUPZ         region z.  ($/yr.).

Np.jp :         The number of local collection vehicles required to
  •             support PUP in region z.

FCDIID:         The fixed annual lease charge for a local collec-
 'PUP
               tion vehicle.  ($/vehicle yr.).
MID  :          The lease cost per mile for a local collection
  HUP          vehicle.  ($/mi.).

Dp |p :          The total distance traveled by local collection
               vehicle to collect from all sources in region z
               and deliver to the reprocessing plant,  (miles/
               circuit).

 FREQ :          The average  waste collection frequency required
     z           at a waste  source in region z,  if the waste tank
                is collected when full.

 CAP •:          The waste storage capacity of source i in region z
    21           (gal.).
                               197

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   Table 73  (Continued).  TABLE OF SYMBOLS FOR THE PUP SYSTEM
X . :            The average generation rate of waste oil  by source
               i in region z (gal./yr.).

mz:             The number of waste generation sources in region z.

CAP :           The average holding capacity of waste sources in

 z
 s
               region z.  (gallons).
INT :           The average interval  between collections at sources
               in region z, if collections are made only when the
               waste storage tank is full.  (yrs. /collection) .

A ;            The area of region z (mi^).

d :            The average straight line distance  between waste
               sources in region z (mi.).
R  :            The straight line distance between region z and
  P            the reprocessing plant,  (mi.).

Fc :Fcpz       A circuitry factor representing the difference
               between travel over an actual road and the straight
               line distance between sources on a collection
               circuit in region z, and between region z and the
               plant, respectively.

               The capacity of the local collection vehicle used
               in the PUP system,  (gal./vehicle).

               The average speed of a local collection vehicle
               between stops in region z.   (mi./hr.).

               The average speed of a local collection vehicle
               between region z and the reprocessing plant.
               (mi./hr.).

PRmiD:         The pumping rate for a local collection vehicle.
  PUP          (gal./hr.).

w :            The average waiting or dead  time spent by a local
               collection vehicle connecting and disconnecting
               at each local source,  (hrs./collection).
                              198

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  Table  73 (Continued).  TABLE OF SYMBOLS FOR THE PUP SYSTEM
w :            The average waiting or dead time a vehicle spends
 P             at the reprocessing plant in off-loading.  This
               includes analysis time,  (hrs./load).

               The utilization factor for local collection
               vehicles.  The percentage of time vehicle is in
               use.

               The overdesign factor.  The ratio of the number
               of vehicles required to support the PUP system
               on the average to the number actually employed.

               The number of drivers maintained for each local
               collection vehicle,  (drivers/vehicle).

LDP1IP:         The labor cost for drivers of local collection
   w          vehicles.  ($/hr.).

NSWp..p:        The number of supporting workers maintained per
               local collection vehicle,  (workers/vehicle).

LSWp.]p:        The labor cost for local collection vehicle
               support workers.  ($/hr.).
                            199

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THE PIP COLLECTION NETWORK

The annual cost of having local  collection pickup vehicles deliver to an
intermediate storage tank, with  long haul  vehicles delivering to plant
from intermediate storage tanks  (the PIP system), in a region z, may be
written as:
(38)
CPIPz     CPIz
      where:  C
               PIPz
             'ISTz
               'IPz
                        ISTz
                                                  IPz
        The annual  cost of operating the PIP
        system in  region z ($/yr).

        The annual  cost of operating the local
        collection  system supporting the PIP
        system in  region z ($/yr).

        The annual  cost of the intermediate
        storage tank for region z ($/yr).

        The annual  cost of the long haul system
        for hauling waste oil  from the inter-
        mediate storage tank in region z,  to
        the plant  ($/yr)
Cost of the Local Collection System

The cost of the local collection system (PI system) may be written as
(39)'
(40)
      or,
      where:  DC
              OH
PIz

PIz

0PI
      Cn    =  DCn    +  OH
       PIz       PIz       PIz
  cPIz  =  DSlz (1 + epl)

  -  The direct cost of the PI system ($/yr).

  :  The overhead cost of the PI system ($/yr)

  :  The overhead multiplier - that is:


          OHPIz  =  0PIDCPIz
                               200

-------
Direct Cost

The direct cost for the PI system in region z is:
                    DCPIz  -  EPIz  +  Slz  +  INSPIZ


      where:    Epl   =  The annual cost of equipment required
                        for the PI system in region z ($/yr).

              CLpjz  =  The cost of labor for operating the PI
                        system in region z ($/yr).

             INS     =  The cost of insurance on local  collection
                        vehicles ($/yr).
Cost of Equipment
                 EPIz  =  NPUPzFCPUP + MIPUPDPIzFREQz


      where:  Np..p   =  The number of local collection vehicles
                        required to support the PI system in
                        region z (vehicles).

              FCp| p  =  The fixed annual charge for operating a
                        local collection vehicle ($/vehicle year)

                     =  The cost per mile of operating a local
                        collection vehicle ($/mi).

                     =  The total distance that must be traveled
                        to make one collection from all sources
                        in region z using the PI system (mi/
                        circuit).
             FREQ    =  The average waste collection frequency
                 z      required at a waste source in region z,
                        if the waste tank is collected when
                        full.
                               201

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 Distance  Traveled  by  PI  Vehicle  In One Collection Circuit
 The distance  traveled  by  a  local  collection  vehicle during one circuit
 under the  PI  system  is  derived  similarly to  that for the PUP system
 except that the  local  collection  vehicle does not deliver to the plant
 each circuit,  but  rather  delivers  to  an intermediate storage tank  (1ST)
 located in the region.  Thus, the  distance traveled during a complete
 circuit is:
 (43)    Dplz  =
                         Fc
                     PUP
                            •»}
 if Vpup<
       and,
 (44)
               PIz
        =  Fc
if Vpup> CAPzmz
       where:    The  symbols  are  defined  in  the Table  of  Symbols.
Time Required for a Local  CollectionCircuit

The expression for time required to complete one  circuit,  collecting
from each source in region z and delivering to the  1ST is  derived  next.
It is similar to that for the PUP system except that  those factors
associated with delivery to the plant are omitted.
(45)
      and,
(46)
'PIz
                (m
CAPzmzFczdz vpup ^
VpupSLpupz CAP2
1 )w 1 ]
U sj 8760 '
H 2)
if
2mzCAPz
PRpUp
Vpup < mz
'PIz
                 (m
Fczdz(mz+2) +
SLpUPz
1 )wl ]
' s 8760
2mzCAPz
PR
™PUP
, if V
                                               PUP
      where:   The symbols are defined in the Table of Symbols.
                                202

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The Number of Local Collection Vehicles Needed for the PI  System

The number of local collection vehicles needed to service  region z
under the PI system is:
                            -
(47)                  PIz    "    YpI«pIINTz
      where:  Npl   =   The number of local  collection vehicles
                        required to service  region z under the
                        PI system.  The remaining symbols are
                        defined similarly, as in equation (29).
Cost of Labor
The cost of labor for the PI system may be calculated as:


(48)      CLpIz  =  Tpl2 FREQ2 [NDpupLDpup+NSWpupLSWpUp]  8760
      or,
(49)      CLpIz  =  NpuTzYpUp (NDpUpLDpup+NSWpupLSWpup)   8760


      where:  The symbols are defined in the Tables of Symbols,
              (PUP and PIP).
Insurance Cost

Cost of insuring the local  collection vehicles required for the PI
system is:
                             INSP!z  =  INSPUPNPIZ
Overall PI System Cost
Sufficient information is now available to compute the local
collection system for the PIP concept according to expression (39),
                               203

-------
 Cost of the Intermediate  Storage Tank  (1ST)

 All  financing costs  for the  IST's are  accumulated  in  the  profit  model
 Refer to Appendix  J  for determination  of the  size  of  intermediate
 storage tanks.

 The  annual  cost  of the  intermediate  storage tank (1ST)  to service
 region z under the PIP  system  is expressed as:


                  CISTz   =  WlSTz  +  DEPISTz
    where:    ITC-T   =   The capital  cost of the 1ST,  its  land
                        and attentant facilities required to
                        serve region z under the PIP  concept ($).

             *IST   =   A multiplier used to calculate annual
                        operating and maintenance cost of an
                        1ST based on the original  investment
                        in the 1ST (1/yr).

            DEPT<-T  =   The annual depreciation allowance for
                        the 1ST serving region z under the PIP
                        concept ($/yr).
The 1ST investment cost may be expressed as:
(52)           IlSTz  =   ISTz       ISTz
SD      +  En9lTz- +  LandIST
                                                                z
    where:   ET_T   =   The cost of materials and construction ($).
              *o I £

                    =   The cost of site development ($).

                    -   The cost of engineering and fee ($).
                                204

-------
Cost of Construction and Materials

The cost of the construction and materials required for the 1ST
required to service region z under the PIP system may be calcu-
lated as:


                  EISTz  =  aio  +  ai!VISTz
    where:     a^0  =   A constant for the ith range of volume ($).

               a-n  =   A constant for the ith range of volume
                        ($/gal).

                    =   The volume of the 1ST required to
                        service region z (gal).

There are two ranges of volume that are of interest to the PIP system:
0 to 100,000 gallons and 100,000 to 1,000,000 gallons.  These two
ranges are important because once a tank becomes greater than 100,000
gallons in capacity, the cost per unit volume drops significantly.
The values of a-jj and their corresponding range of volumes are shown
below:
                1ST Construction and Material Cost Constants

             Volume Range    i    aio, a^

          0 - 100,000 gal.   1    0.0    .392

  100,000 - 1,000,000 gal.   2  14,262   .0511


Site Development Costs, Engineering. Costs, and Fee

The cost of site development, engineering and the fee charged are
computed as percentages of the construction and material costs.
Thus:

(54)                SDISTz  =  EI EISTz




 (55)                E"9lSTz  =   £2EISTz


        where:      ej:     j = 1,2 = constants
                               205

-------
Cost of Land

The cost of land is computed as a function of the tank diameter and
the set back around the tank.  The cost of land required for the 1ST
in region z is discussed next.

The height of the 1ST is taken  to be 1.2 times the diameter.  Thus,
diameter can be expressed as a  function of volume such that:


(56)          Diameter  =  .521V1/3  (V in gals.)

Using this relationship, the cost of 1ST land may be written as:


(57)      LandISTz  =
    where:    C1T      =   The  cost  of  lapd  in  region z  at  the
               1STz      1ST  site  ($/ft2).

             SB      =   The  set back  around  an  1ST (ft).


 Cost  of  Parking Area

 The size of  the parking area  is  taken as a  function  of  the volume of
 the 1ST  such  that the  land  area  of the parking lot is calculated as:

 (58)                     9lSTzVISTz

                                      ij
    where:     9-i^r-,   = a constant  (ft /gal).
 Then  the  cost  of the parking  area  is:


 (59)              PLjSTz  =  C1ISTz9isTzVISTz
 The  total  initial  investment  associated with the  1ST serving  region  z
 is  calculated  as:

                         3
 (60)     JISTZ  =  [ ] +AejJ (aio + ail
                                 206

-------
Depreciation Allowance

Depreciation allowance is determined on a straight line basis over
the estimated life of the 1ST.   Thus:


(61)         DEPISTz  =  EISTz  
-------
Direct Cost

The direct cost for the IP system in  region  z  is
(64)
where:  E
       CL
         Tp
         rpz
                        The annual  cost of equipment  required
                        for the IP  system in region ^ ($/yr).

                        The cost of labor operating the IP
                        system in region z ($/yr).
                        The cost of insurance on the IP vehicles
                        operating in region z ($/yr).
Cost of Equipment

(65)    ER    -  NIpT2FCIpT  +
                                             (MI
                                                IpT
                                                            MIIPR)
    where:
        N
         IpT
         jpz
      FC
        rpRz
                       The number of long haul trailers (IPT)
                       required to support the IPI system in
                       region z (trailers).

                       The annual  fixed charge for operating a
                       long haul trailer ($/trai ler yr).

                       The cost per mile of Operating a long
                       haul trailer ($/mi).

                       The distance traveled by long haul
                       vehicle between the 1ST in region z and
                       the plant, over the course of a year.
                       (Note that this definition of distance
                       traveled differs from that used in the
                       local collection calculation) (mi/yr).

                       The number of long haul tractors (IPR)
                       required to support the PIP system in
                       region z (vehicles).

                       The annual  fixed charge for operating
                       a long haul tractor ($/tractor yr) .

                       The cost per mile of operating a long
                       haul tractor ($/mi).
                               208

-------
Distance Traveled by Long Haul Vehicles Between Intermediate Storage
Tanks in Region z and Plant

The distance traveled on one round trip between ISTz and the plant is:
                                 2FcpzRzP


The quantity of waste carried in this trip is Vjp, the capacity of the
long haul vehicle.  The amount of waste that must be transported
between the 1ST and the plant during one year is:
                                 xz


    .  where:   x^  =  The total quantity of waste oil  generated
                      by all  sources in region z.
Thus:
(67)                         x'  =  l  x ,
      where:  x •   =  The average amount of waste generated by
                      source i  in region z within a year
                      (gal ./yr) .

It follows that the number of trips made by the long haul  vehicles is
                                 "IP
                                  xf
                                 \

      so that:


(68)
                               209

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 Time Required for Long Haul  Vehicles  to Transport  Waste  from 1ST to  Plant

 The time required for one round trip  of the  IP  vehicle  is:



         2Fcn7  .   2VIp  +            -i

                                    P J "8760"


 Then,  the  total  long  haul  vehicle  time  required  per year  is:
                     x^
 (69)      Tlpz   .
     where:   T     =   The  time  long  haul  vehicle(s) must  spend
                      transporting waste  from  the  1ST  to  the
                      plant  over  the course  of a year  (years).
Number of Long Haul  Trailers  Required

The number of long haul  trailers  required to support the PIP  system
in region z is:


(70)                  W       '    TlPZ
                                YIPT«IPT

     where:  NTpT   =  The number of long haul  trailers  required
                       to support the IP system in region z .
              YTPT  =  The utilization factor for IP vehicles.

              jj     =  The overdesign factor.
                                210

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Number of Long Haul Tractors Required

Since  the long haul tractors may be detached  from the long haul
trailers, a savings will  accrue if tractors are  detached and dispatched
immediately on the next leg of their journey  during their available
hours  while the trailers  wait to be pumped out.  The number of
tractors required is:


                  T     -  XzK + "p  +  pR.p
(7D     NIPR  -   J^—isn^n^
         1PK          ^IPR"IPR
     where:  NTp   =  The  number of long haul  tractors required
               *     to support the IP system in region z.


Cost of Labor

The cost of labor required to operate  the IP system  in region z is:
(72)     CLIpz  =  {NIpTzYIPT  [(NSWIpT) (LSWIpT)]

                           NDIPR)  (LDIPR) +

                      (NSWIPR)  (LSWIPR)] }  8760
    where:   NSWjpj  =  The number  of support workers  required
                      per trailer (workers/trailer).

                   =  The number  of support workers  required
                      per long  haul tractor (workers/tractor).

                   =  The number  of drivers required per long
                      haul tractor (drivers/tractor).

            LSWjpy  =  The labor cost per support worker on a
                      trailer  ($/hr).

            LSWjp£  =  The labor cost per support worker on a
                      tractor  (5/hr).

            LDTpp  =  The labor cost per driver of a long haul
              irK     tractor  ($/yr).
                               211

-------
Costof Insurance

Insurance costs for the IP system are calculated for region z as:


(73)
     where:  INSjpT  =  The cost of insurance per long haul
                        trailer ($/yr trailer).

             INSTPR  =  The cost of insurance per long haul
                        tractor ($/yr tractor).
Total IP System Cost

Sufficient information has been developed through expressions (64)
through (73) to compute IP system operating costs in accordance with
equation (62).
Total PIP System Cost

Equations (39), (51) and (62) may be summed in accordance with
equation (38 ,) to calculate total annual PIP system cost.
                               212

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     Table 74.   TABLE OF SYMBOLS FOR THE PIP COLLECTION NETWORK
PIP System:
PI Subsystem:



1ST Subsystem:



IP Subsystem:




CPIPz:
 'ISTz'
CIPz:
DCPIz:
°HPIz:
A system whereby a local collection vehicle
picks up waste from sources within a region,
and delivers the waste to an intermediate
storage tank within the region.  Larger, long-
haul vehicles then pick up the waste from the
intermediate storage tank and deliver it to the
reprocessing plant.  The PIP system is comprised
of three subsystems:  1)  the PI system;  2)  the
1ST system; and 3)  the IP system.

That component of the PIP system that involves
picking up waste from local sources and deliver-
ing it to the intermediate storage tank.

That component of the PIP system that involves
storing the waste collected in a region in an
intermediate storage tank.

That component of the PIP system that involves
picking up waste at an intermediate storage
tank and delivering it to the reprocessing plant.

The annual cost of operating the PIP system in
region z.  ($/yr.).

The annual cost of operating the PI subsystem in
region z.  ($/yr.).

The annual cost of operating the 1ST subsystem
in region z.  ($/yr.).

The annual cost of operating the IP subsystem in
region z.  ($/yr.).

The annual direct cost of operating the PI sub-
system in region z.  ($/yr.).

The annual overhead cost of operating the PI
subsystem in region z.   ($/yr.).

The ratio of PI  overhead to PI  direct cost,  i.e.,
                                213

-------
Table  74 (Continued).  TABLE OF SYMBOLS FOR THE PIP COLLECTION NETWORK
 PI    :            The initial  investment cost of the  intermediate
   i^z            storage tank and its  facilities supporting  the
                   1ST subsystem in region z.   ($).

 DEP    :           The annual  depreciation allowance  for the  inter-
     blz            mediate storage tank  in region z.   ($/yr.).

 E    :            The cost of material  and construction for  the
   ^ 2             intermediate storage  tank supporting  the  1ST
                   system in region z.   ($).

 SD    :            The cost of site development for the  intermediate
                   storage tanks and its facilities  in region  z.
                   ($).

 ENGT_T :           The cost of engineering services  and  fee  associa-
                   ted with construction of the intermediate  storage
                   tanks in region z.   ($).

 Land    :          The cost of land on which the intermediate  stor-
      ^ z          age tanks are located.  ($).

 EpT :             The annual  cost of equipment required to  support
   lz              the PI system in region z.   ($/yr.).

 CLpT :            The cost of labor required to operate the  PI
                   system equipment in  region z.  ($/yr.).

 INSpT :            The cost of insurance on PI system vehicles in
                   region z.  ($/yr.).

 N    :            The number of local  collection vehicles  re-
  Pl-)'z             quired to support the PI system in region  z.
                   (vehicles).

 D   :             The distance traveled by PI vehicles  in  the
                   course of collecting  from all sources in  region
                   z once,  (mi./circuit).

 T   :             The time spent by PI  vehicles in collecting
  "                from all sources in region z once,   (yrs./
                   circuit).

                   The annual  cost of operating the 1ST system in
                   region z.  ($/yr.).
                                 214

-------
Table 74 (Continued).  TABLE OF SYMBOLS FOR THE PIP COLLECTION NETWORK
                    The ratio of annual  cost of maintenance and
                    operation of an intermediate storage tank to the
                    investment cost of an intermediate storage tank.
  PLT   :            The cost of peripheral  land (used for parking,
                    etc.) for the intermediate storage tank located
                    in region z.   ($).

  V    :             The capacity  of the intermediate storage tank in
   iblz             region z.  (gal .).

  A.  ,A.,:          Construction  and material  cost constants asso-
   10               ciated with an intermediate storage tank of
                    the ith capacity range.   ($, and $/gal.).

  £,,£„,£„:         Site development, engineering and fee cost
                    constants associated with  an intermediate
                    storage tank.

  C1_  :            Cost of land  used for the  intrmediate storage
                    tank used in  region z.
  SB   :             The set back required around an intermediate
    IbT             storage tank.   (ft.).

  g   :             The intermediate storage tank parking lot
   1ST              size contant.   (ft2/gal.).

  X   •             The ratio of salvage value  to initial investment
                    cost for an intermediate storage tank site.

  y   :             The expected usedful life of an intermediate
                    storage tank facility,   (yrs.).

  DC.p :             The annual  direct operating cost for the  IP
                    system in region z.   ($/yr.).

                    The annual  overhead  cost of the IP system in
                    region z.
                                 215

-------
  'IPR
Table 74 (Continued).  TABLE OF SYMBOLS FOR THE PIP COLLECTION NETWORK
                  The ratio of IP overhead cost to direct cost,  i.e.


                            °HIPz  =  QIP  DCIPz-
E   :              The annual  cost of equipment required to support
                  the IP system in region  z.

                  The annual  cost of labor required to operate the
                  IP system equipment.  ($/yr.).

 INSTn  :           The cost of  insurance on IP  system  vehicles.
    IPZ            ($/yr.).

 NTPT  :            The number of  long-haul trailers  required to
 .                 support  the  IP system in region  z.

 FCTpT:            The fixed annual  lease  charge for a  long-haul
     1             trailer.   ($/trailer/yr.).

 MITnT:            The lease cost per  mile for  a long-haul  trailer.
   I'I             11- /,«•:  \
                   The  round trip distance  traveled by  a  long-haul
                   tractor-trailer combination  between  the  inter-
                   mediate  storage tank  and the reprocessing  plant
                   in one trip,   (mi./circuit).

                   The  number  of  long-haul  tractors required  to
                   support  the IP system in region z.

 FCTDD:             The  annual  fixed  lease cost  for one  long-haul
                   tractor.   ($/ yr.)
 MIjpp:             The  lease  cost  per mile  for  a  long-haul  tractor.
 X' :               The  total  quantity  of  waste  generated  within
                   region  z  in  one year,   (gal./yr.).

 T    :             The  total  long-haul  trailer  time  required  to
  IPRz             support the  IP system  for a  year,   (tractor yrs.)

 V  :               The  capacity of one long-haul  trailer.
  1H               (gal./trailer).
                               216

-------
Table 74 (Continued).   TABLE OF SYMBOLS FOR THE PIP COLLECTION NETWORK
  T   :             The overdesign  factor.  The ratio of the number
   ^               of vehicles  required to support  the IP system,
                  on the average, to the number actually employed.
     :             The utilization factor for long-haul vehicles.
  IP'              The percentage  of time the vehicle is in use.
                  The overdesign  factor.  The ratio of the number
                  of vehicles  required to support  the IP system,
                  on the average, to the number actually employed.
                  The utilization factor for long-haul tractors.
                  The percentage  of time the vehicle is in use.
 T    :            The total long-haul trailer time required to
  IPTz             support the  IP  system for a year,  (trailer yrs.)
 N   :             The number of long-haul trailers required to
  *p'              support the  IP  system.
 NSW    :           The number of support workers required per
   IP'            long-haul trailer.
 N   :             The number of long-haul tractors required to
  IPR              support the  IP  system.
 NSW-    :           The number of support workers required per long-
   IPR            haul tractor.
 ND    :            The number of drivers required per long-haul
   IPR             tractor.
 LSW    ,LSW    :    The hourly labor cost for long-haul trailer and
   IPT    IPR     tractor support workers respectively.  ($/hr.).
 LD    :            The hourly labor cost for long-haul tractor
   1PR             drivers.  ($/hr.).
 INS    :           The annual cost of insuring a long-haul
   *p'            trailer.  ($/trailer yr.).
 INS    :           The annual cost of insuring a long-haul
   IPR            tractor.  ($/tractor yr. ).
 Y :               The utilization factor for short-haul trucks.
                                P  .  v_ui
                                      VPUP
                               217

-------
Distribution System

The distribution system is the collection system in reverse.   It is
envisioned, however, that products will  be distributed only to large
volume users of the reprocessed products so that a local  distribution
system will not be required.  It seems most likely that only the long
haul portion of the PIP system will be used to deliver the products
produced by the waste oil reprocessing system directly to large volume
users.

In the case where long haul vehicles are used to deliver products
directly to users, the annual  cost of delivery to this rth customer is:
(74)
      where:  C[)£Lr  =  The annual  cost of delivery to the rth
                        customer ($/yr).
               0PLr  =  ^e delivery system overhead factor

             DCnn    =  The annual direct cost of delivery to
               utLr     the rth customer ($/yr).

The direct cost of delivering to the rth customer is given by:


(75>          DCDELr  =  EDELr  +  CLDELr  +  INSDELr


The symbols used in this equation are the same and have the same
meanings as those used in the collection system model except for
the subscripts.  This convention will be used throughout the delivery
system cost model.  New symbols will be defined where used.

The components of equation (75) are defined as:


(76)          INSDELr  =
 (77)          CLDELr  =   {NDELTrYDELT [(NSWDELT)  (LSWDELT]



                  +  NDELRrYDELR ^NDDELrLW   +


                          +  (NSWDELR)  (LSWDELR)j
                                 218

-------
(78)       ED£Lr  -   NDE[_TrFCDELT   +   NDELRrFCDELR


                        +   DDELr (MIDELT + MIDELR)
                            Y'
                            Tr
™       NDELTr  =    v_^rtTV^.   * "~SR
^ELr
                                                    ,	I,
                                                    '8760J
                           Yr
(8°)       NDELRr  =   Ynr, n^,, ,Vnr,    '  SR^/'   (sTlo)
      where:    Yr  =  The amount of oil  delivered  to  customer  r
                      (gal./yr).
      and, finally:

                              V ?Fr  R
fsn               n           r   rpKrp
(,oU               unn r         u
                    utLr         VDEL
This formulation assumes that deliveries  are  made  to  customers  in
trailer load lots; that is to say,  small  users  of  oil  who  are able
to take only partial  trailer load lots  are  not  supplied  with this
system.  This assumption is consistent  with the findings of the market
survey, which indicates that a viable market  for reprocessed oils is
the fuel oil market,  and that there are a sufficient  number of  large
users of fuel oil  in  the State of Maryland  to absorb  all of the output
of the waste oil reprocessing system.   This is  probably  true for
most states, particularly northern  states.

Should it be desired  to service a market  of small  customers, however,
the delivery cost model may be expanded to  a  full  service  model
equivalent to the PIP and PUP systems used  to collect waste oil.
                                219

-------
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                                         220

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Table 76.  SUMMARY OF COST,  REVENUE & PROFIT (CRP) MODEL EQUATIONS


  REPROCESSING PLANT AND TANK FARM COST
  Cost of Land for Plant and Tank Farm
                      UndPLTFi  =  C1PLTFi APLTFi
  Plant and Tank Farm Construction Cost
           EPLTFi  =  EPLi+ETFi  =  (1+6PLi>UPLi
                             ^] [EpLj -
  Plant and Tank Farm Depreciation

  (15)           DEPpLTM  =  DEPpL.

                   -  "-A^)EPL1
            PLTFl'

  Plant Operating
   (6)     CPLTFi   =   HPLTFi +  CVPLTF1
                  +   EPLTFi  (BPLTFi  + "PLTFi)   +   ™PLTFi
                               222

-------
  Table 76 (Continued).  SUMMARY OF COST, REVENUE & PROFIT (CRP)



                         MODEL EQUATIONS
 (7)







 (14)    CVpLTFi =



                  4        n


               +  z \  +  E
                 k=2 k    j=l
 (20)           TAX.  =  n(LandpLTF1
Investment Capital






 (24)          !i  =  !PLTFi  +  !IST  +  !TRAN  +  SUi







 (2)                  IpLTFi  -  '--       '  '







 (25)          SUi  =  (CCQL  +  CDIST  +  CpLTFi)






Annual Cost of Investment Capital






                           (EPM + SU^         I

(26)   Cli  =  (1-CS) PQ { -
                    +  ETFi + LandPLTFi  +  	\
1ST
                          - (l+P0)-YTFi      ! . (l+Po)-YIST
                              223

-------
   Table  76(Continued).   SUMMARY  OF COST,  REVENUE & PROFIT (CRP)

                          MODEL  EQUATIONS



Annual Cost of Operating Capital


(21)          COC-j  =  [CCOL +  CDIST + CpLTFi] tfpoc



Annual System Cost


 (])         Ci  =  CPLTFi   +  CCOL   +  CDIST  +   COCi   +  CIi


Operating  Revenue
 (31)                 Rsi    =   rX]  £ f. .  Sj
 Investment Revenue
                     [DEPPLTF1  + DEPIST + DEPTRAN][(Hpd)YPL1
 (29)         RT,   =	5-j	
 Other  Revenue
  (32)
         Where:   q^i   =   collection  revenue

                       =   virin oil  tax
                 X-j(l-r)  =  incinerator revenue

                   Sr  =   incinerator charge ($/gal.)
                              224

-------
Table 76 (Continued).  SUMMARY OF COST, REVENUE & PROFIT  (CRP)
                       MODEL EQUATIONS


 Annual  System Revenue

 (28)                RT   =   RSi   +  RIi   +  Roi

 Annual  Operating Pjofit

 (33)       OP-j   =  Rsi  - [CpLTFi + CCQL + CDIST +


 Net Profit Before Taxes
 (34)                     NPBTi   =  R.
 Cash Flow
(36)            CFi   =  NPBTi   +  DEPPLTFi   +  DEPIST  +  DEP
                                     PLTFi        IST        TRAN
 Discounted Value of Cash Flow
                    _   =   _________
 (37)             H     "   [l-(Hp*)"YPLi
 Break Even  Sales  Price

                               ^i  - (Roi
 (38)                   S*  =
                           225

-------
         Table 77.   SUMMARY OF CASH  FLOW,  REVENUE  &  PROFIT  (CRP)
	BREAKEVEN PRICE  PER GALLON OF  PRODUCT  PRODUCED	
CASE     I
TYPE OF PLANT     Mechanical-Chemical Plant
SIZE OF PLANT     19,800,000 gallons per year
FINANCING      100%  (?  7.25%  interest rate
TAXES      None
INCINERATORS     2
PRODUCT VALUE  ($/gal)  - Fuel  Oil  0.122—Lube Stock  0.20—Cutter Stock 0.12

COLLECTION FEE ($/gal)                      -0.02	0	+0.02
     COST OF LAND ($)                        653j400    ^3^    653>4QO
     PLANT - CONSTRUCTION  COST  ($)         5,700,000  5,700,000  5,700,000
     DEPRECIATION ALLOWANCE ($/yr)           463J25    463J25    463J25
     PLANT OPERATING COST  ($/yr)           1,610,781  1,610,781  1,610,781
     INVESTMENT CAPITAL REQUIRED  C$)       7,539,636  7,539,636  7,539,636
     'COST OF INVESTMENT CAPITAL  ($/yr)       972>562    972j552
     COST OF OPERATING CAPITAL  ($/yr)         28s000     28j000
     ANNUAL SYSTEM COST ($/yr)             3,236,125  3,236,125  3,236,125
     OPERATING REVENUE ($/yr)              1,848,622  1,848,622  1,848,622
     INVESTMENT REVENUE ($/yr)               -,70,328    170,328    170,328
     OTHER REVENUE ($/yr)                     49,500    445,500    841,500
     SYSTEM REVENUE ($/yr)                 2,068,449  2,464,449  2,860,449
     NET  INCOME BEFORE TAXES  ($/yr)       -1,167,676   -771,676   -375,676
     CASH  FLOW ($/yr)                       -701,551   -305,551     90,449
     BREAKEVEN AVERAGE SALES  PRICE  ($/gal)   Q.20         0.18       0.15
                                227

-------
Table 73.  CRP MODEL - SYSTEM PARAMETERS FOR CASE I
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (1 /YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR (S/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR ( S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE ($/GAL)
UNIT - VIRGIN TAX (S/GAL^
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE ($/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF TANKS ($/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR)
UPLi

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                       228

-------
         Table 79.  SUMMARY OF CASH FLOW, REVENUE & PROFIT (CRP)

	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED	
CASE     II

TYPE OF PLANT     Mechanical-Chemical  Plant

SIZE OF PLANT     22,000,000 gallons per year

FINANCING     100%  @  6.53% interest  rate

TAXES      None

INCINERATORS     2 required

PRODUCT VALUE ($/gal) - Fuel Oil 0.15—Lube Stock 0.20—Cutter Stock  0.15


COLLECTION FEE ($/gal)

     COST OF LAND ($}                                   65,400

     PLANT - CONSTRUCTION COST  ($)                   4,560,000

     DEPRECIATION ALLOWANCE ($/yr)                     255,360

     PLANT OPERATING COST ($/yr)                     1,426,799

     INVESTMENT CAPITAL REQUIRED ($)                 5,418,765

     COST OF INVESTMENT CAPITAL ($/yr)                 541,918

     COST OF OPERATING CAPITAL  ($/yr)                     9,687

     ANNUAL SYSTEM COST ($/yr)                       2,280,706

     OPERATING REVENUE ($/yr)                        2,673,775

     INVESTMENT REVENUE ($/yr)                         188,704

     OTHER REVENUE ($/yr)                            1,182,499

     SYSTEM REVENUE ($/yr)                           4,044,978

     NET INCOME BEFORE TAXES ($/yr)                  1,764,272

     CASH FLOW ($/yr)                                2,022,132

     BREAKEVEN AVERAGE SALES PRICE ($/gal)              0.06
                                  229

-------
Table 80.  CRP MODEL - SYSTEM PARAMETERS FOR CASE II
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (1 /YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR (S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX (S/GAL ^
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE ($/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF lANKS ($/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR]~
UPLi

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4nc;nnnn.
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-------
         Table 81.   SUMMARY OF CASH FLOW,  REVENUE & PROFIT  (CRP)
	BREAKEVEN PRICE PER GALLON OF  PRODUCT PRODUCED	
CASE     III
TYPE OF PLANT     Mechanical-Chemical  Plant
SIZE OF PLANT     18,000,000 gallons  per year
FINANCING     100%   @  7.98% interest rate
TAXES     None
INCINERATORS     2  required
PRODUCT VALUE ($/gal) - Fuel Oil 0.10-^Lube Stock  0.20— Cutter Stock  0.12

COLLECTION FEE ($/gal)
     COST OF LAND ($)                                1,306,800
     PLANT - CONSTRUCTION COST ($)                   6,839,998
     DEPRECIATION ALLOWANCE ($/yr)                   1,048,799
     PLANT OPERATING COST ($/yr)                     2,384,910
     INVESTMENT CAPITAL REQUIRED ($)                10,527,703
     COST OF INVESTMENT CAPITAL  ($/yr)               2,184,111
     COST OF OPERATING CAPITAL ($/yr)                   81,055
     ANNUAL SYSTEM COST ($/yr)                       6,195,118
     OPERATING REVENUE ($/yr)                        1,513,266
     INVESTMENT REVENUE ($/yr)                         136,226
     OTHER REVENUE ($/yr)                             -360,000
     SYSTEM REVENUE  ($/yr)                           1,289,492
     NET INCOME BEFORE TAXES  ($/yr)                 -4,905,626
     CASH FLOW ($/yr)                               -3,851,327
     BREAKEVEN AVERAGE SALES  PRICE ($/gal)              0.47
                                 231

-------
Table 82.  CRP MODEL - SYSTEM PARAMETERS FOR CASE III
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($}
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND (S/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (1 /YEARS)
MAINTENANCE FACTOR (I/YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/6AL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR ($/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX (S/GAL ^
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE ($/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS (S)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF TANKS (S/YEAR)
DEPRECIATION OF TRUCKS (S/YEAR)
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                      232

-------
         Table 83.  SUMMARY OF CASH FLOW, REVENUE & PROFIT (CRP)

	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED	
CASE     IV

TYPE OF PLANT      Mechanical-Chemical  Plant

SIZE OF PLANT      19,800,000  gallons per year

FINANCING     100% capitalization   @  0.0%  interest rate

TAXES     None

INCINERATORS     2 required

PRODUCT VALUE ($/gal) - Fuel Oil 0.122—Lube Stock 0.20—Cutter  Stock  0.12


COLLECTION FEE ($/gal)                      -0.02	0	+0.02

     COST OF LAND ($)                        65,340     65,340     65,340

     PLANT - CONSTRUCTION COST ($)       57,000,000  5,700,000  5,700,000

     DEPRECIATION ALLOWANCE ($/yr)          463,125    463,125    463,125

     PLANT OPERATING COST ($/yr)           1,610,781  1,610,781  1,610,781

     INVESTMENT CAPITAL REQUIRED ($)       7,539,636  7,539,636  7,539,636

     COST OF INVESTMENT CAPITAL ($/yr)       0.0       0.0        0.0

     COST OF OPERATING CAPITAL ($/yr)        28,000     28,000     28,000

     ANNUAL SYSTEM COST ($/yr)             2,263,563  2,263,563  2,263,563

     OPERATING REVENUE ($/yr)              1,848,622  1,848,622  1,848,622

     INVESTMENT REVENUE ($/yr)              170,328    170,328    170,328

     OTHER REVENUE ($/yr)                    49,500    445,500    841,500

     SYSTEM REVENUE ($/yr)                 2,068,449  2,464,449  2,860,449

     NET INCOME BEFORE TAXES ($/yr)         -195,114    200,886    596,886

     CASH FLOW ($/yr)                       271,011    667,011  1,063,011

     BREAKEVEN AVERAGE SALES PRICE ($/gal)   0.14       0.11       0.08
                                 233

-------
Table 84.  CRP MODEL - SYSTEM PARAMETERS  FOR  CASE  IV
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SO FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (1 /YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR (S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -'LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX ($/GAL>
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE ($/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF TANKS (S/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR)
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                       234

-------
         Table 85.  SUMMARY OF CASH FLOW,  REVENUE & PROFIT (CRP)

	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED	
CASE     V

TYPE OF PLANT      Mechanical-Chemical  Plant

SIZE OF PLANT      19,800,000  gallons per year

FINANCING     100%  @  7.25% interest rate

TAXES      None

INCINERATORS     Bottoms Sold  --  1  incinerator  required

PRODUCT VALUE ($/gal) - Fuel Oil 0.112—Lube Stock  0.20—Cutter  Stock  0.12


COLLECTION FEE ($/gal)                      -0.02	0	+0.02

     COST OF LAND ($)                        653,400    653,400    653,400

     PLANT - CONSTRUCTION COST ($)          5,400,000  5,400,000  5,400,000

     DEPRECIATION ALLOWANCE ($/yr)           434,625    434,625    434,625

     PLANT OPERATING COST ($/yr)            1,554,436  1,554,436  1,554,436

     INVESTMENT CAPITAL REQUIRED ($)        7,213,964  7,213,964  7,213,964

     COST OF INVESTMENT CAPITAL  ($/yr)       925,656    925,656    925,656

     COST OF OPERATING CAPITAL ($/yr)         27,357     27,357     27,357

     ANNUAL SYSTEM COST ($/yr)              3,137,231  3,137,231  3,137,231

     OPERATING REVENUE ($/yr)               1,848,622  1,848,622  1,848,622

     INVESTMENT REVENUE ($/yr)               159,914    159,914    159,914

     OTHER REVENUE ($/yr)                     49.500    445,500    841,500

     SYSTEM REVENUE ($/yr)                 2,058,035  2,454,035  2,850,035

     NET INCOME BEFORE TAXES  ($/yr)       -1,079,196   -683,196   -287,496

     CASH FLOW ($/yr)                       -641,571   -245,571    150,429

     BREAKEVEN AVERAGE SALES PRICE  ($/gal)    0.20       0.17       0.14
                                  235

-------
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SO FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (I/YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR (S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -'LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX (S/GAL ^
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE ($/GAL)
UPLi

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INVESTMENT IN STORAGE (S)
INVESTMENT IN TRUCKS ($)
              '1ST-
                      68455.
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST (S)
DISTRIBUTION COST (S)
DEPRECIATION OF TANKS (S/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR)

YTPAN

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236

-------
          Table 87-  SUMMARY OF CASH FLOW, REVENUE & PROFIT (CRP)
 	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED	
CASE     VI
TYPE OF PLANT      Vacuum  Distillation  and Hydrofining
SIZE OF PLANT      30,000,000  gallons per year
FINANCING      100%  @  7.25%  interest  rate
TAXES      0.0122
INCINERATORS      Bottoms  Sold --  1  incinerator  required
PRODUCT VALUE ($/gal) - Fuel Oil 0.122—Lube Stock  0.20—Cutter  Stock 0.15

COLLECTION FEE ($/gal)                     -0.02	0	+0.02
     COST OF LAND ($)                        653,400    653,400    653,400
     PLANT - CONSTRUCTION COST ($)         5,700,000  5,700,000  5,700,000
     DEPRECIATION ALLOWANCE ($/yr)           463j125    463,125    463,125
     PLANT OPERATING COST ($/yr)           1,794,919  1,794,191  1,794,191
     INVESTMENT CAPITAL REQUIRED ($)       7,635,461  7,635,461  7,635,461
     COST OF INVESTMENT CAPITAL ($/yr)       986,364    986,364    986,364
     COST OF OPERATING CAPITAL ($/yr)         30,400     30,400     30,400
     ANNUAL SYSTEM COST ($/yr)             3,443,977  3,443,977  3,443,977
     OPERATING REVENUE ($/yr)              3,154,187  3,154,187  3,154,187
     INVESTMENT REVENUE ($/yr)               170,328    170,328    170,328
     OTHER REVENUE ($/yr)                     129,000    729,000  1,328,999
     SYSTEM REVENUE ($/yr)                 3,453,514  4,053,514  4,653,514
     NET INCOME' BEFORE TAXES ($/yr)             9,537    696,574  1,209,537
     CASH FLOW ($/yr)                        475,662  1,075,662  1,675,662
     BREAKEVEN AVERAGE SALES PRICE ($/gal)    0.16       0.13       0.10
                                 237

-------
Table 88.  CRP MODEL  -  SYSTEM PARAMETERS  FOR CASE VI
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND (S/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST (S)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST (S)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (I/YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR (S/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR (S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX (S/GAL ^
WASTE RECOVERABLF FRACTION
UNIT INCINERATION PRICE (S/GAL)
INVESTMENT IN STORAGE (S)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST (S)
DISTRIBUTION COST (S)
DEPRECIATION OF TANKS ($/YEAR)
DEPRECIATION OF TRUCKS (S/YEAR)
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                      238

-------
         Table 89.  SUMMARY OF CASH FLOW, REVENUE & PROFIT (CRP)

	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED	
CASE     VII

TYPE OF PLANT      Mechanical  Chemical Plant

SIZE OF PLANT      30,000,000 gallons  per year

FINANCING       100%  @  7.25% interest  rate

TAXES      0.0112

INCINERATORS      2 required

PRODUCT VALUE ($/gal) - Fuel Oil 0.122—Lube Stock 0.20—Cutter Stock  0.12


COLLECTION FEE ($/gal)                     -0.02	0       +0.02

     COST OF LAND  ($)                        653,400    653,400    653,400

     PLANT - CONSTRUCTION COST  ($)         6,585,000  6,585,000   6,585,000

     DEPRECIATION ALLOWANCE  ($/yr)           539,362    539,362    539,362

     PLANT OPERATING COST ($/yr)           2,157,394  2,157,394   2,157,394

     INVESTMENT CAPITAL REQUIRED ($)       8,709,749  8,709,749   8,709,749

     COST OF INVESTMENT CAPITAL ($/yr)     1,133,206  1,133,206   1,133,206

     COST OF OPERATING CAPITAL  ($/yr)          35,142     35,142     35,142

     ANNUAL SYSTEM COST ($/yr)             3,974,137  3,974,137   3,974,137

     OPERATING REVENUE ($/yr)              3,197,321   3,197,321   3,197,321

     INVESTMENT REVENUE ($/yr)               198,187    198,187    198,187

     OTHER REVENUE ($/yr)                   -102,000    498,000   1,098,000

     SYSTEM REVENUE ($/yr)                 3,293,506  3,893,506   4,493,506

     NET INCOME BEFORE TAXES ($/yr)         -680,631     -80,631    519,369

     CASH FLOW ($/yr)                       -138,268    461,731   1,061,731

     BREAKEVEN AVERAGE SALES PRICE ($/gal)     -.15        -.13       0.10
                                 239

-------
Table 90.  CRP MODEL - SYSTEM PARAMETERS FOR CASE VII
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (1 /YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR ($/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPTTAI T7ATTON FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (5/GAL)
UNIT - VIRGIN TAX (S/GAL ^
WASTF RFCOVFRARI F FRACTION
UNIT INCINERATION PRICE ($/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (/EARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF TANKS (S/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR)
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190894.
0.45
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0.0725
0.167
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0.1694
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0.0675
0.112
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0.1500
0.0219
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                       240

-------
         Table 91.  SUMMARY OF CASH FLOW, REVENUE & PROFIT (CRP)

 	BREAKEVEN PRICE PER GALLON OF PRODUCT PRODUCED
CASE     VIII

TYPE OF PLANT     Mechanical-Chemical  Plant

SIZE OF PLANT     30,000,000  gallons per year

FINANCING      100%  @  7.25% interest rate

TAXES     0.0112

INCINERATORS      2 required

PRODUCT VALUE ($/gal) - Fuel  Oil 0.15 — Lube Stock  0.25 — Cutter Stock 0.15


COLLECTION FEE ($/gal)                     -0.02	0	+0.02

     COST OF LAND ($)                        653,400     653,400   653,400

     PLANT - CONSTRUCTION COST ($)          6,585,000   6,585,000 6,585,000

     DEPRECIATION ALLOWANCE ($/yr)           539,362     539,362   539,362

     PLANT OPERATING COST ($/yr)            2,292,502   2,292,502 2,292,502

     INVESTMENT CAPITAL REQUIRED ($)        8,777,303   8,777,303 8,777,303

     COST OF INVESTMENT CAPITAL ($/yr)      1,142,936   1,142,936 1,142,936

     COST OF OPERATING CAPITAL ($/yr)          36,835     36,835    36,835

     ANNUAL SYSTEM COST ($/yr)              4,120,667   4,120,667  4,120,667

     OPERATING REVENUE ($/yr)               3,944,896   3,944,896 3,944,896

     INVESTMENT REVENUE ($/yr)               198,187     198,187    198,187

     OTHER REVENUE ($/yr)                    -102,000     498,000  1,098,000

     SYSTEM REVENUE ($/yr)                 4,041,081   4,641,081  5,241,081

     NET INCOME" BEFORE TAXES  ($/yr)          -79,585     520,414  1,120,414

     CASH FLOW ($/yr)                         462,776   1,062,776  1,662,776

     BREAKEVEN AVERAGE SALES  PRICE ($/gal)    0.16       0.13       0.11


                                 241

-------
Table 92.  CRP MODEL - SYSTEM PARAMETERS FOR CASE VIII
PLANT INVESTMENT COST ($)
TANK FARM INVESTMENT ($)
PLANT - CONTINGENCY FACTOR
TANK FARM CONTINGENCY FACTOR
COST OF LAND ($/SQ FT)
PLANT SIZE (SQ FT)
SALVAGE VALUE FACTOR
TANK FARM SALVAGE FACTOR
SYSTEM LIFE (YEARS)
TANK FARM LIFE (YEARS)
ADMIN LABOR COST ($)
ADMIN LABOR OVERHEAD FACTOR
PROD LABOR COST ($)
PROD LABOR OVERHEAD FACTOR
START-UP PERIOD (YEARS)
CAPITAL DEBT INT RATE
OPERATING FLOAT (YEARS)
INT ON OPN CAPITAL
YIELD OF MOTOR OIL
YIELD OF FUEL OIL
YIELD OF CUTTER STOCK
YIELD OF LUBE OIL
DEMAND ACCT INT RATE
TAX RATE (I/YEARS)
MAINTENANCE FACTOR (1 /YEARS)
INSURANCE FACTOR (1 /YEARS)
MOTOR OIL ADDITIVE FACTOR ($/GAL)
CUTTER STOCK FACTOR (S/GAL)
PROCESS FUEL FACTOR (S/GAL)
POWER FACTOR (S/GAL)
CHEMICAL FACTOR (S/GAL)
SUPPLY OVERHEAD FACTOR
UNIT PRICE - MOTOR OIL
UNIT PRICE - FUEL OIL
UNIT PRICE - CUTTER STOCK
UNIT PRICE -' LUBE OIL
CAPITALIZATION FACTOR
VOLUME WASTE OIL INPUT
VOLUME VIRGIN TAXED (GALLONS)
UNIT - COLLECTION FEE (S/GAL)
UNIT - VIRGIN TAX (S/GAL >
WASTE RECOVERABLE FRACTION
UNIT INCINERATION PRICE (S/GAL)
INVESTMENT IN STORAGE ($)
INVESTMENT IN TRUCKS ($)
LIFE OF STORAGE TANKS (YEARS)
LIFE OF TRUCKS (YEARS)
COLLECTION COST ($)
DISTRIBUTION COST ($)
DEPRECIATION OF TANKS ($/YEAR)
DEPRECIATION OF TRUCKS ($/YEAR)
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                      242

-------
   Table 93.  SPILLS OF OILY MATERIAL TO BALTIMORE HARBOR
Date
07-26-71
08-12-71
09-17-71
09-27-71
10-14-71
11-05-71
11-15-71
12-20-71
12-28-71
01-03-72
01-04-72
01-17-72
01-20-72
01-24-72
01-25-72
01-27-72
02-05-72
02-08-72
02-09-72
02-17-72
02-18-72
02-24-72
02-26-72
03-02-72
03-07-72
03-08-72
03-13-72
03-15-72
03-16-72
03-28-72
03-29-72
Type of
Oil
Thin waste
Lt. black
Bunker C
Bunker C
$5 Heating
Bunker C
Medium weight
#2 Heating
Waste oil
Bunker C
#2 Diesel Fuel
#6 Heating
#6 Heating
Waste oil
Bunker C
Waste oil
#2 Diesel Fuel
Waste oil
#6 Heating
Thin oil
#6 Heating
#4 Fuel oil
Bunker C
#2 Heating
Molassas
#2 Heating
#2 Diesel fuel
Waste oil
Waste oil
Foam & Haste
Bunker C
Approx. Oil
Spilled
150 gals.
1,200 gals.
150/200 gals.
50/100 gals.
800 gals.
400 gals.
100 gals.
1 ,500 gals.
30 gals.
50 gals.
50 gals.
75 gals.
10 gals.
undetermined
20 gals.
50 gals.
200 gals.
10 gals.
50 gals.
10 gals.
1 gal.
100/300 gals.
200 gals.
300 gals.
undetermined
6,000 gals.
3,500 gals.
100 gals.
200 gals.
100 gals.
100/200 gals.
Approx. Oil
Recovered
150 gals.
undetermined
150/200 gals.
50/100 gals.
undertermined
400 gals.
90 gals.
undertermined
30 gals.
50 gals.
50 gals.
75 gals.
10 gals.
none
20 gals.
50 gals.
none
10 gals.
50 gals.
10 gals.
l gal.
none
recovered by company
none
none
800 gals.
3,500 gals.
100 gals.
200 gals.
100 gals.
recovered by company
From Maryland Port Authority
                           244

-------
Table 93 (Continued).  SPILLS OF OILY MATERIAL TO BALTIMORE HARBOR
Date
04-04-72
04-05-72
04-05-72
04-06-72
04-10-72
04-18-72
05-03-72
05-03-72
05-07-72
05-08-72
05-09-72
05-10-72
05-12-72
05-12-72
05-12-72
05-18-72
05-22-72
05-24-72
05-25-72
06-01-72
06-02-72
06-06-72
06-14-72
06-14-72
06-14-72
06-15-72
06-20-72
06-27-72
07- -72
07- -72
07- -72
07- -72
07- -72
07- -72
07- -72
08-12-72
08-24-72
08-28-72
08-30-72
08-31-72
Type of
Oil
#6 Heating
Waste oil
Waste oil
Oil & gasoline
#4 Heating
Waste
Waste
Bunker C
Paraxylene
#2 Fuel oil
Waste oil
Waste Oil
Bunker C
#2 Fuel oil
Bunker C
#4 Fuel oil
Bunker C
Waste oil
Light fuel oil
Gasoline
Hvy. used oil
Gasoline
Waste oil
Bunker C
Paint product
Fuel oil
#2 Fuel oil
Waste oil
Detergent
#5 Fuel oil
Waste oil
Waste oil
#2 Fuel oil
#2 & #6 oil
White liquid
Gasoline
Asphalt
Bunker C
Light waste oil
Waste oil
Approx. Oil
Spilled
30 gals.
5 gals.
100 gals.
6,000 gals.
200 gals.
10/15 gals.
5 gals.
5 gals.
30 gals.
10 gals.
5 gals.
5 gals.
30 gals.
30/50 gals.
20/50 gals.
200 gals.
100 gals.
50 gals.
10 gals.
100 gals.
25-50 gals.
5,700 gals.
30 gals.
50 gals.
_ _ _
50 gals.
25 gals.
- _ _
undetermined
3,000 gals.
_ _ _
750 gals.
500 gals.
50 gals.
10 gals.
50 gals.
4,000 gals.
30 gals.
small traces
small traces
Approx. Oil
Recovered
recovered by company
none
recovered by company
none
200 gals.
10/15 gals.
none
cleaned up by ship crew
undetermined
cleaned up by company
5 gals.
5 gals.
15 gals.
30/50 gals.
recovered by company
150 gals.
90 gals. + 6 tons debri
50 gals.
none
none
none
none
30 gals.
cleaned up by company
_ _ _
none
none
- - .
cleaned up by company
2,300 gals.
- _ _
250 gals.
none
25 gals.
none
none
cleaned up by company
cleaned up by company
none
none
                             245

-------
Table 93 (Continued).  SPILLS OF OILY MATERIAL TO BALTIMORE HARBOR
Date
09-19-72
09-22-72
09-26-72
09-28-72
10-02-72
10-03-72
10-17-72
10-24-72
10-27-72
11- -72
11- -72
11- -72
12-02-72
12-05-72
12-06-72
12-06-72
12-14-72
12-29-72
01-08-73
01-09-73
01-10-73
01-10-73
01-10-73
01-10-73
01-11-73
01-17-73
01-24-73
01-30-73
02-03-73
02-07-73
02-15-73
02-20-73
02-21-73
02-23-73
02-27-73
03-01-73
03-05-73
Type of
Oil
Unknown
Waste oil
Fuel oil
Bunker C
#6 Heating
Gasol ine
Waste oil
Waste oil
Diesel oil
Asphalt
Bunker C
#5 Heating
#2 Fuel
#4 Fuel
Diesel fuel
#6 Bunker fuel
#15 Intermediate
#5 Heating
Waste oil
Waste oil
Bunker C
Bunker C
Waste oil
Waste oil
Soluble oil
Bunker C
#2 Fuel
Bunker C
#2 Fuel
#6 Fuel
Asphalt
r6 Low sulfur
#6 Fuel
n Fuel
Gasoline & #2 Fu<
#2 Fuel
Bunker C
03-05-73 Heavy oil
Approx. Oil
Spilled
50 gals.
undetermined
265 gals.
30 gals.
20 gals.
3,000 gals.
30 gals.
10 gals.
700 gals.
20 gals.
50 gals.
undetermined
900 gals.
150 gals.
200 gals.
100 gals.
2,000 gals.
10 gals.
150 gals.
25 gals.
6,500 gals.
100 gals.
1 ,200 gals.
5 gal s.
10 gals.
5 gals.
100 gals.
30 gals.
400 gals.
4,000 gals.
400 gals.
42 gals.
25 gals.
10 gals.
>1 10 gals.
600 gals.
5 gals.
50 gals.
Approx. Oil
Recovered
25 gals.
5 gals.
none
cleaned up by vessel's ere
none
none
20 gals.
none
none
15 gals.
25 gals.
cleaned up by USCG
none
125 gals.
150 gals.
75 gal .
1,500 gals.
5 gals.
125 gals.
none
6,000 gals.
50 gals.
1 ,000 gals.
none
none
none
100 gals, (by company)
30 qals. (by company)
300 gals.
3,500 gals.
300 gals.
42 gals.
none
none
none
500 gals.
none
50 gals.
                                 246

-------
Table 93 (Continued).  SPILLS OF OILY MATERIAL TO BALTIMORE  HARBOR
Date
03-06-73
03-08-73
03-09-73
03-12-73
03-13-73
03-14-73
03-16-73
03-16-73
03-18-73
03-22-73
03-25-73
03-30-73
04-01-73
04-01-73
04-10-73
04-11-73
04-12-73
04-16-73
04-16-73
04-16-73
04-17-73
04-19-73
04-23-73
04-23-73
04-23-73
04-23-73
04-24-73
04-25-73
04-25-73
04-27-73
Type of
Oil
n Fuel
Waste oil
Coal dust
Lube oil
Fuel oil
Blue liquid
Waste oil
Waste oil
#2 Fuel
Waste oil
Bunker C
Waste oil
Waste oil
#6 Oil
Waste oil
Approx. Oil
Spilled
1,800 gals.
10 gals.
_ _ _
30 gals.
small amount
20 gals.
20 gals.
250 gals.
100 gals.
200 gals.
15 gals.
10 gals.
20 gals.
500 gals.
5 gals.
Transmission oil 100 gals.
#4 Fuel | 4 gals.
Approx. Oil
Recovered
700 gals.
none
_ - _
15 gals.
none
none
20 gals.
250 gals.
none
150 gals.
none
none
5 gals.
none
5 gals.
50 gals.
4 gals..
- - - Investigated - - ,- Could not find any oil - - -
Waste oil
Waste oil
Waste oil
Paint product
Waste oil
Waste oil
#6 Heating

Oil & debris
Oil & debris
Diesel fuel
Waste oil
5 gals.
300 gals.
400 gals.
60 gals.
10 gals.
20 gals.
1,500 gals.
4,000 gals.
200 gals.
100 gals.
70 gals.
300 gals.
none
300 gals.
400 gals.
60 gals.
none
none
none
2,000 gals.
200 gals.
100 gals.
70 gals.
300 gals.
                              247

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            Figure  10.   REPORTED  OIL  SPILL AND RECOVERY  INCIDENTS

                        BALTIMORE  HARBOR   7/26/71  - 4/27/73
                                                        X	X Approx. quantity spilled

                                                        O— —O Approx. quantity recovered

                                                          ®   Number of recorded spills
                                                               with data
7/26-   J
 12/31
1971   1972
                                                              1973
                                           — DATE --
                                             248
UUS GOVERNMENT PRINTING OFFICE 1974  546-316/275 1-3

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 SELECTED WATER
 RESOURCES ABSTRACTS

 INPUT TRANSACTION FORM
                  w
  STATE OF MARYLAND WASTE OIL RECOVERY AND REUSE PROGRAM,
                   S, K.  ssrtO- r

                   6

                   8, Pirformii*1-- 0tg$r>'>'ation
  Martin, E. J. and Gumtz, G. D.
  Environmental Quality Systems, Inc., Rockville, Maryland
    under contract to Maryland Environmental Services,
    Annapolis, Maryland
                       S-800650
                     .Type ; : JR«pe; -sd
                     Period C'cvwed
                        U.S. Environmental Protection Agency, Office of R&D
                          U.S.  Environmental  Protection Agency Report
                            Number  EPA 670/2-74-013, January  1974.
             This report supplements the findings of a 1971  study conducted by the
Maryland Environmental Service and the Department of Health and Mental Hygiene, which
concluded that the discharge of waste oils to state waters produced a problem within
the State of Maryland.  The report recommended a comprehensive program of collection,
storage, and reprocessing for pollution prevention and for resource recovery.  The pro-
gram was guided by the premises that al1 categories of waste oils generated within the
State were to be managed, recovered, or disposed of, that fuel oils would be the princi-
pal products produced, and that current state-of-the-art technology would be used in the
design of the program elements.
Using questionnaires and interviews, it was estimated that 18.5 million gallons of waste
oils were generated in Maryland in 1972.  Mathematical models determined the most effec-
tive collection systems and economics for the waste oil program.  Preliminary designs
were developed for different scales of pr9cess plants.  Heavy emphasis was placed on pro-
tecting the environment.  Plant costs varied between $3 million for a 7.3 million gallon
per year (mgy) plant, to $7.5 million for a 30 mgy plant.  Management, legislative and
regulatory approaches to the waste oil problem were also delineated.

A waste oil recovery and reuse program can be initiated immediately using existing tech-
nology, collection and storage resources.  Because of a need to consider all sources of
waste oils, the program requires subsidization at lower plant throughputs.  At the 30 mgy
capacity, the program economics can be self-sustaining.
         •-.v-  *0il Wastes, *Maryland, *Management, *Planning, *Control, Recycling,
     Surveys, Regions, Economics, Waste Treatment, Waste Disposal, Industrial  Wastes,
     Cost Analysis, Design Data, Oil Spills
              *Waste Oil, *Waste Crankcase Oil, Waste Lube Oil, Waste Oil  Collection*,
     Waste Oil Re-refining*, Waste Industrial  Oils, Implementation Plan, Recovery and
     Reuse
                       05E
• >:
20.

fjtejwrt)
Sfcufny Ci»ss.
(F«e*>
' • Psgea '
22. Price
"*v:
Send To :
WATER RESOURCES SCIENTIFIC INFORMATION CENTER
US DEPARTMENT OF THE INTERIOR
WASHINGTON, D C 2O24O
          Dr. Edward J.  Martin
Environmental  Quality Systems, Inc.

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