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I will post the rest of his answer when I get it.

A partial answer, from my friend: "Waste oil has its own rules but when you decide to use it as a fuel it becomes a product. This is an important distinction as there may be rules on the storage of this of which I am unaware. I would think that what you should consider, strongly, is secondary...

I am not so worried about burning it as transporting and storing it! I have a buddy that is an EPA cop for the Texas Attourney General's office, I will ask him tomorrow.

You have a photo of the paper towel roll thingie? You have piqued my interest!