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You are here: Home / Lumber Memo / Proper Disposal of Oily Rags

Proper Disposal of Oily Rags

July 17, 2025 by PLM

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Proper Disposal of Oily Rags

In an industry where fire is a constant threat, even the smallest oversight can have devastating consequences. Hardwood businesses are no strangers to risk. You hear about fires at sawmills and manufacturing facilities far too often in the news. It’s a harsh reminder that working with wood, heavy machinery, and flammable materials comes with serious hazards. While not every risk is avoidable, some of the most dangerous incidents can be prevented with the right precautions. One often overlooked but significant threat is something as simple as oily rags. If improperly stored or discarded, they can ignite on their own and quickly lead to a catastrophic fire.

Fires caused by improper handling of oily rags happen every day in the wood niche. The exposure poses a significant fire hazard due to the potential for spontaneous combustion. As the oils oxidize, they release heat, which can accumulate in the rag and ignite the cloth or any other materials in proximity to the oily rags. This issue is especially present when rags are crumpled or balled up and thrown into receptacles that are not designed to handle this type of exposure. Proper handling, storage, and disposal of oily rags is necessary in every woodworking operation and crucial in preventing unnecessary fires.

Danger of Spontaneous Combustion

Some oils undergo oxidation, a chemical reaction that releases heat as they dry. If this heat isn’t dissipated, it can build up, potentially igniting the raw material, even without an external flame source. Petroleum products like motor oil, gasoline, kerosine, and hydraulic fluid are all flammable and pose the same risk of spontaneous combustion if not properly controlled. Flammable finishing products and more significantly products used in topcoats fall into this category, as well.

Proper Storage and Disposal Guidelines

Never store oily rags in a pile or crumpled up. Instead, spread them out on a nonflammable surface (like concrete) to dry, ensuring good airflow to dissipate heat. Lastly, always use a designated UL-300 approved metal container specifically designed to store oily rags and prevent fires. These waste cans should be made of metal, have self-closing lids, and be UL-listed for safety.

When disposing oily rags, it’s always good to review the manufacturer’s instructions regarding disposal. Check the labels of the products you use for specific disposal recommendations. As a general rule regarding oily rag disposal regulations:

  • Businesses must abide by certain regulations relating to oily rags and hazardous waste to remain compliant and minimize the risk of harm to people, animals, and property.
  • The United States Environmental Protection Agency (EPA) has specific requirements for managing oil cleanup materials. The agency states that businesses must regard rags with free-flowing oil as hazardous waste and treat them as such.
  • The Occupational Safety and Health Administration (OSHA) Standard 1926.252(e) mandates that you keep all oily rags, along with solvent waste and other flammable liquids, in a covered, fire-resistant container until removed from the site.
  • Your state and local municipality may also impose their own disposal regulations for throwing out combustible materials and waste.

Never dispose of oily rags in regular trash or recycling bin. Understanding the best way to throw out your rags is essential for combating potential hazards and keeping your facility secure. Before getting started, see if there is a local hazardous waste company that serves your area. These companies make the disposal of oily rags easy.

Here are some best practices for safely disposing of your shop’s used rags to help keep risk to a minimum:

Step 1: Gather Your Oily Rags

The first thing you’ll do is gather your soiled rags. Be sure not to leave them wrinkled or folded for any period of time, especially in sunlight or near another heat source.

Step 2: Locate an Airtight Container

You will also need to grab an empty container. Select one that is made of a fire-resistant material and features an airtight lid. It should be a self-closing UL-rated container. Ensure the container is clean and that there is no flammable residue present inside.

Size is another important consideration. Choose an option that is big enough to fit all your rags or grab multiple containers.

Step 3: Put the Rags in an Empty Container and Seal the Lid Tightly

Place your oily rags into the container. Do not leave them unattended. Place the lid on the container promptly. Sealing it securely is essential to avoid a potential hazard. You do not want any more oxygen entering the environment and giving the rags a chance to combust.

Step 4: Temporarily Store the Container in a Climate-Controlled Space

Once you’ve secured the lid on your container, take it to a safe location. You should keep these containers only temporarily while waiting for hazardous waste collection. Be sure to clearly label any containers holding oily rags. Keep them stored in a dry, climate-controlled space where they won’t be tampered with. Monitor your containers periodically to ensure they are secure.

Step 5: Contact a Hazardous Waste Company for Disposal

The last step is to contact a local hazardous material removal company that offers oil rag disposal services. They’ll have the expertise to safely transport and dispose of these materials for your business, so they do not harm the environment.

Here at PLM, we are committed to helping our insureds face safety challenges like this and many others. You can find a wealth of information on our website: Wood Industry Loss Control & Risk Management – PLM related to Loss Prevention methods and our vendor partners. We also have a new safety sign, “No Oily Rags in Trash,” available to download and print off our website.

Lumber Memo: Issue 3 – 2025

IN THIS ISSUE:

      • Presidents Commentary
      • Installation: A Risky Value Add
      • Proper Disposal of Oily Rags
      • Kitchen & Breakroom Fires – Incidents That Can Be Avoided
      • The Importance of Updated Information in Your Insurance Renewal
      • Spotlight On: Retiree Lunch & New Board Members
      • Spotlight On: PLM Wins Top Workplace Award
      • Spotlight On: Motor Carrier Forms
      • Spotlight On: Upcoming Events

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Installation: A Risky Value Add

NEXT:

Kitchen & Breakroom Fires - Incidents That Can Be Avoided

Filed Under: Lumber Memo

Pennsylvania Lumbermens Mutual Insurance Company
One Commerce Square
2005 Market Street, Suite 1200
Philadelphia, PA 19103

Toll Free: 1.800.752.1895
Fax: 215.625.9097
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