Sorry!! The article you are trying to read is not available now.
Politics And Regulation
Trading And Investing
How To Trade
How To Invest
Wall Of Worry
Hoofy & Boo
From The Buzz & Banter
MV Education center
t3 live subscriptions
Buzz And Banter
Cooper's Market Report
The Options Strategist
Men Accused of Stealing Used Cooking Oil (And It's Not As Crazy As It Sounds...)
September 22, 2010 11:49 AM
DEPT. OF WE SAW THIS COMING
The AP reports that two New York City men, Youngil Kim and Byung Ho Choi, have been accused of trying to steal 700 gallons of used cooking grease from two storage tanks behind a North Bergen, NJ Five Guys Burgers & Fries restaurant.
Waste oil can be turned into biodiesel fuel. The restaurant sells its grease to a contractor for a little more than $1 a gallon.
Police said the Queens, N.Y., residents attached a hose to a pump in a canary yellow van. The oil was stored in a plastic bladder.
Back in May,
we looked into
rising cases of grease theft (no, seriously!) and determined that, when people start stealing something, that's when you know it's got a future.
In 1996, an article in the
Wall Street Journal
quoted one Tres Dausey, who, with his father George, ran a struggling grease outfit in St. George, South Carolina, called Dausey By-Products.
“To tell you the truth I don't see why anyone would want to get in the business," he said. "My dad's been in the business I can't tell you how many years long. Right now the market for our finished product is the lowest it's been in 30 to 35 years.”
That was then. Today, while biofuels still have a ways to go before keeping ExxonMobil executives awake at night, used frying oil, or yellow grease, which can be rendered by companies like Darling International into a substitute for diesel fuel, is a traded commodity that has tripled in price over the past two years, leading to what
calls the “ever-increasing theft of grease.”
“Grease is no different from diamonds,” Christopher Griffin, director of legal affairs for Cold Spring, Kentucky-based Griffin Industries Inc., which collects raw grease, told a reporter. “They both have value, they’re both a commodity.”
As diesel costs rise, grease thefts do too, with grease being illegally carted away from storage areas behind fast-food restaurants like McDonald’s, Burger King, and Wendy’s by everyone from biodiesel “homebrewers” to organized grease-theft rings with their own tanker trucks.
“Obviously, I think there’s some linkage there,” Michael Frohlich, director of federal communications for the National Biodiesel Board, told Minyanville when asked about the correlation between diesel prices and grease theft. “While 70% of biodiesel used to come from virgin vegetable oils, it’s now down to 50%, with a corresponding rise in the use of waste grease. At one time, used grease required restaurants to implement costly disposal programs. Now, it’s something they can profit from.”
If there’s a positive takeaway to be found in the rise in grease theft, Frohlich said, it’s that it illustrates “the growing size and acceptance of the biodiesel industry.”
Tim Norman, VP of sales & marketing at Mahoney Environmental in Joliet, Illinois, said of grease theft, “Oh yeah. We see quite a bit of it actually.”
“It’s one of those things you can never really stop,” he told Minyanville, “but we try to make it a little more cumbersome for the grease thieves to get at. Particularly on the outside containers, we’re putting on locks and clips, though anyone with a boring saw can cut a hole in the side and suck the grease right out.”
Norman said Mahoney stepped up security measures as a result.
“More and more, you’re seeing the containers being kept inside, with a port the drivers can open up and collect the grease,” he explained. “We’ve got security cameras up, really anything that can act as a deterrent. It helps, but it’s certainly not going to stop the problem.”
Houston attorney Jon Jaworski, known in legal circles as “The Grease Lawyer,” defends people accused of grease theft. (He started making clients promise to clean up before coming to his office after the nauseating odors got to be too overwhelming.)
“I had a guy who was paid with a bottle of vodka and a couple cartons of cigarettes to steal grease,” Jaworski told Minyanville in an interview. “I also get a lot of calls from biodiesel companies wanting to know how to protect themselves from people stealing their grease.”
Being a defense lawyer, Jaworski isn’t sure he agrees that, under the law, grease theft is actually theft.
“If it’s rancid oil, a pollutant, sitting in a garbage container, is it really theft?” he asked. “Under supreme court law, if it’s in a trash can, it’s trash.”
That’s something to be argued in a court of law, not here. However, one thing not up for debate is Jaworski’s passion for grease.
“I love a good grease case -- they’re always very interesting.”
No positions in stocks mentioned.
LOCK UP THE FRY-O-LATOR!
See All Tickers »
More From Minyanville
Trading and Investing
MV Education Center
Buzz & Banter
Cooper's Market Report
The Options Strategist
Directory of Terms
T3 Live Subscriptions
Buzz and Banter.com
Ruby Peck Foundation
Terms and Conditions
Follow Minyanville on Facebook
Follow minyanville on Twitter
Follow Minyanville on Linkedin
Subscribe to Our RSS Feed
©2017 Minyanville Media, Inc. All Rights Reserved