Waste transformer oil should be handled as regulated industrial waste. The process usually includes identification (including PCB screening for legacy units), segregation from other oils, safe storage in labeled sealed drums, and transport by licensed waste contractors. Depending on contamination and local rules, disposal options include approved incineration, hazardous waste treatment, or controlled recycling and re refining. Never discharge to soil, drains, or surface water. Documentation such as manifests and SDS records is typically required, especially if PCB content exceeds legal thresholds.