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We need to dispose of oily rags - is there a certain way these item go.. ie certified waste?

The following guidance can found in the EPA’s Industrial Waste Resource Guidelines

Waste oils and used oil filters

Waste oils are prescribed industrial wastes. They include: used engine (sump) oil, gear oil, differential oil, automatic transmission fluid, brake fluid and other related products. Prior to collection by a contractor, they must be securely stored in good quality bulk tanks or 200 litre drums, in an enclosed (bunded) area, preferably under a roof, or on spill containment pallets or other self-bunded storage units.

They must never be tipped down stormwater drains or sewers, tipped on to soil or burnt (only EPA licensed incinerators can be used to burn PIW). Used oil filters are prohibited from disposal to landfill and must be recycled. They should be stored in drums for collection in the same way as waste oils

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