Abstract: Oil based drilling fluids (muds) that include clays can be broken into at least three layers of their respective components (oil, water, and clay) by adding a few weight percent of a high HLB surfactant prediluted in water. Centrifugation can accelerate this separation process. The resulting oil, water, and clay layers can thereafter be more cost effectively recycled or disposed of following the process. In another embodiment an additional surface active agent is added to facilitate breaking the drilling mud into three or more phases without the centrifuge.