NOVELTY - An apparatus for biological degradation of oily sludge comprises a receiving tank (24) for receiving oily waste; a trash pump (34) having an inlet port connected to outlet port of receiving tank; a sequencing batch reactor tank connected to discharge port of trash pump to receive homogeneous slurry from the tank; a recirculation pump (56) located within a recirculation line (58) for circulating homogeneous slurry; a nutrient tank; and a pH controller to monitor slurry.    USE - The apparatus is useful for biological degradation of oil waste including oily sludge, hydraulic oil, contaminated diesel fuel, lube oils, solvent based paints and water based paints (claimed), in food processors, feed lots, paper industry, and oil refineries.    ADVANTAGE - The apparatus degrades oily sludge within two weeks from 20000 ppm to less than 100 ppm and a degradation cycle requires 5 days. The apparatus is relatively simple yet highly effective and performs cost effective on-site treatment of oily sludge and similar industrial waste. The bioreactor tank is capable of treating 3000 to 4000 gallons of raw oily sludge per month. Use of ultrafiltration unit allows a 3 - 4 fold reduction in the size of the apparatus and eliminates the need for land filling and results in complete degradation of hydrocarbons and other organic components in the sludge, leaving only process water and biomass as non-toxic byproducts.    DETAILED DESCRIPTION - The apparatus also comprises a storage tank supply pump; a storage tank connected to inlet port of storage tank supply pump; an ultrafiltration unit (26) having membrane within discharge line; and a bag filter located within discharge line upstream from the ultrafiltration unit for removing larger particles.    DESCRIPTION OF DRAWING(S) - The figure shows a schematic diagram of the bioreactor system for biological degradation of oily sludge.    Bioreactor system/installation (20)    Receiving tank (24)    Ultrafiltration unit (26)    Trash pump (34)    Recirculation pump (56)    Recirculation line (58)