Abstract: A method of treating and shaping drill cuttings for disposal, which includes the steps of providing initial separation of drilling fluid from the drill cuttings after the drilling fluid is returned from the borehole; drying the drill cuttings in a cuttings dryer; shaping the cuttings into pellets; granulating the cuttings pellets into granular material; and conveying the granulated cuttings for transport to an onboard bulk storage boat or to a dockside cuttings disposal site, so that the drill cuttings entering the cuttings dryer contain 20% to 40% or more of oil on cuttings (OOC) ratio of drilling fluids retained on the drill cuttings, while the cuttings are dried in the cuttings dryer have a moisture content of 1% to 8% total moisture. Next the cuttings are formed into highly compressed, spherical pellets, so that the pelletized cuttings can be transported more readily, and free of hydrocarbon cross-contamination during storage.