Abstract: An oil separation method and apparatus for the continuous separation of acceptable oil from contaminated oil containing solids and liquids withdrawn from an oil well. Three separate settling tanks are partitioned and provided with skimmers, as appropriate, to enable contaminated oil to dwell sufficiently within the tanks. After sufficient dwell time, the skimmers remove separated oil from the top layer and move it to an oil tank. Liquids such as water and emulsified oil are separated into an intermediate layer and moved to further settling tanks to provide sufficient dwell time for oil separation and collection. The first settling tank has a rotating jet spray header for agitating the solids accumulated in the bottom of the first tank and a series of suction headers for withdrawing the solids without interruption of the top oil layer or the separation operation.