The unique floating pick-up skims the tramp oil and coolant mix from the top of the machine sump. As the liquid moves slowly through the patented steel coalescing plates, oil droplets as small as 20 microns are separated from the coolant and rise to the top of the PhaSep unit. When the oil layer builds up sufficiently in the unit, it passes over a specially-designed weir, and is trapped away from the clean coolant. The oil can then be removed periodically through the waste oil drain. Coolant, cleaned of 99% of contaminated oils, is returned directly to the machine sump.