The huge "fuel-washing" fraud discovered by Customs officers at the Border was creating a massive environmental hazard through toxic byproducts from the process of turning home heating and agricultural oil into vehicle fuel.
The plant, hidden in farm buildings about half-a-mile from the Border on the Armagh-Dundalk road, was producing an estimated 300,000 litres of "washed" fuel a week. It was possibly making as much as €100,000 profit a week.
Some 9,000 litres of toxic byproduct was found at the scene. It is believed that much more has been secretly dumped, possibly in the Border area.
Three well-known smuggling families, with past known connections to both the Provisional IRA and "Real IRA", are believed responsible for the operation. Customs officers are preparing files for the Director of Public Prosecutions (DPP). No arrests were made yesterday.
The washing operation, which is believed to use sulphuric acid and a distillation process, produces a highly toxic sludge.
According to local sources two members of one of the families involved are suffering severe health problems as a direct result of their exposure to the washing process.
A team of 20 Customs officers supported by gardaí raided the plant, in a large outbuilding on a farm at Carrickedmond about four miles from Dundalk, at 6 a.m. yesterday. On the site they found four lorries loaded with the illegal fuel and ready for transport to outlets in the Republic, Northern Ireland, England, Scotland or Wales.
Customs officers estimate there was about 100 thousand litres of washed diesel in the four lorries.
It had been put into large oil tankers which in turn were concealed by either a curtain cover on the lorry or by straw. Bales of straw also hid the pipes leading into the massive shed from which the operation was working, and it was obvious to Customs officers that the gang had extensive experience in avoiding arrest.
Mr Sean Brosnan, in charge of the Customs Enforcement Unit in Dundalk, said: "There are two aspects to this crime. Aside from the serious loss of revenue to the Exchequer, this oil retains a percentage of acid that damages motor vehicles. It is a highly dangerous operation. These people just don't care."
Garda and Customs officers said the most worrying aspect of yesterday's seizure was the discovery of about 40 50-gallon drums containing the thick black residue of the chemical operation that removes the dye from the diesel.
Officers said the 2,000 gallons discovered yesterday would be capable of causing large-scale pollution if not disposed of correctly.