The Oil Daily, April 15, 1992 n9969 p1(1) Old tires-to-oil recycling program launched in Texas. (Brief Article) Tom Stewart-Gordon. Full Text: COPYRIGHT The Oil Daily 1992 HOUSTON -- Those tire mountains which threaten to burst their fences along Texas highways may begin to erode into useful products thanks to a recent state law. However, the Texas Water Commission, which took over administration of the program on March 1, has a number of issues to iron out before it is fully operational. Effective April 1, Texas began paying 85 cents a tire to recyclers, provided 25 percent of their feedstock came from unauthorized dumps and the tires are ripped into pieces no bigger than 3 inches by 3 inches. The money is coming from a $2.00 a tire levy on every new and recapped tire purchased in the state. The fee has been in effect since Jan. 1 and is expected to generate up to $40 million a year. The reason for the disparity between what is charged new tire buyers and what is paid old tire recyclers is that most of the 200 to 300 million old tires in the state were replaced before the levy was in place. Currently only one company has been approved for the 85 cent incentive, although a large shredder is planned for Cleveland, Texas. Waste Recovery, Dallas, has a plant in Baytown which can reduce up to eight million tires a year into a sort of coalburner helper. Tires are shredded and the rubber bits are sold to coal burners, primarily paper and pulp companies, as a fuel supplement. Last year the Baytown plant processed almost three-quarters of a million tires. The facility is not profitable, although Waste Recovery's units in Portland, Ore., and Atlanta are. Other companies are hoping the new levy will be enough to tip them into investor favor and get them running. Global Tire Recycling, Houston, wants to return tires to their constituent parts. The company's president, Peter Pratt, hopes to buy a $4.5 million machine which will not only shred up to 60 tons of tires a day, but also turn them into 150 barrels of oil, 15 tons of carbon black, more than enough methane to run the plant and steel balls. The idea of converting tires back into oil has been around at least since the oil scare of the 1970s, but has never been commercial. Article A12150377