My grandfather had a shop in Eastern Montana where he worked on various pieces of machinery for his farm and for neighbors. At that time (in the 1920's and 1930's) about the only fuel they burned in that area was fairly crappy lignite coal that was mined locally. My grandfather had a fairly big coal stove that he kept going all winter.
His farming and working on others machinery generated quite a bit of waste oil, which my grandfather would carry up to the attic and put it in a couple of barrels. The barrels were plumbed to gravity feed a copper tube to the coal stove. Inside the stove, my grandfather had it plumbed so the oil would dribble down a piece of chain and burn over the burning coal. It got rid of the junk oil and really helped to heat the shop.
My cousins still own that farm and the stove is still there in Grandpa's shop. Various family members have used the shop all these years and the coal stove is used for heat if the shop is needed in winter. They haven't used the oil burning setup lately because they decided that it was too much work to carry the old oil up to the attic, and also because they don't generate that much junk oil any more.
There is a valve in the line to regulate the oil flow to the stove. I would imagine it was pretty important to turn off that valve when there was any chance that the stove might go out, but my cousins said they never remembered the oil system leaking all over.
It sure wouldn't be very hard to make such a setup, and it wouldn't cost much. On the other hand, it might very well not be legal if it makes any visible smoke, if you were in an area where that would matter. Good luck!
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