Upon signing a lease through August 2025, Vertex began renting the 40-acre site, which includes an approximately 1,400 barrels per day API Group II base oil plant, from Bango Oil, the landowner. Vertex is not required to pay rent until January 2016, and has the option to purchase all of Bango Oils equity – which includes the plant – at any time for an initial consideration of $8.5 million.

The rerefinery was previously leased by Bango Refining, a subsidiary of Omega Holdings Co. Last year, Vertex reached an agreement with Omega Refining to acquire its refining assets, including a lease for the Bango plant, but the deal was to be completed in two phases. In May 2014 Vertex acquired Omegas Cam2 lubricant blending plant in Bakersfield, Calif., and facilities in Marrero and Myrtle Grove, La.

The second part of the transaction called for Omega to sell its lease for the Bango rerefinery to Vertex, after restoring the facility to operational condition. Vertex said in a May 5 press release that Omega failed to meet that obligation by its deadline of March 31, 2015.

Speaking to investors on April 1, Vertex noted that Omega had been operating the plant for Vertex under a tolling and advisory agreement. We provide the technical support to the Omega staff thats running the refinery, CEO Ben Cowart said. The tolling agreement allows for us to provide all the feedstock into the refinery and take all of finished products and co-products on the back side of refinery and sell those into the market and then we provide a tolling feedback to Omega for the operations of the plant. Cowart added that the Bango facility is capable of processing around 23 million gallons of used oil per year.