The clean-up operation to remove 2,000 gallons of toxic oil residue seized by customs officers earlier this week from a diesel "laundering" plant will run into thousands of euros, according to Louth County Council.
Customs officers found the barrels on Monday when they raided the plant at Carrickedmund, Kilcurry, a mile from Dundalk and half a mile from the Border.
The scale and sophistication of the operation indicates that the criminals behind it could have lost millions of euro in revenue to the State.
The 40 barrels will have to be transported outside the State, as there is no suitable facility in the Republic to safely dispose of the oil-based substance, which resembles tar. It is the end product of the washing process to remove coloured dye from diesel.
The process, which involves adding acids to the original coloured diesel, results in the residue which contains traces of the acid for which there is no suitable waste facility in the State.
"We are moving the barrels because of concerns about possible environmental pollution. We want to ensure that this goes to a proper facility and are employing a specialist contractor to do this," said a environment spokesman for the council.
The council is happy that the barrels found represent the total residue. A number are badly corroded and it appears they were in situ for some time.
There was no permit for any such activity on the site. This would have involved planning permission, two permits and possibly a licence from the Environmental Protection Agency.
Initial concerns that the waste could have leaked and possibly polluted the land or water table were unfounded.
However, the council expects the cost for the removal and safe disposal of the waste to run into thousands of euros.
It is considering legal action and, according to the spokesman, is intent on recovering its costs.
Meanwhile, it is believed that up to eight people were involved in the laundering operation and that at least one may have had subversive connections.