Oil like residue in panel

[KWH]

I was working in a existing GE panel, remove breaker and about drop it. I had what seems like machine oil on my hand, alot of the breakers are covered in it with some pooling on the side and at the terminal screw. I checked the wires entering thru the top and everything is dry, there is some oil on one of the feeders but only where wrapped in phase tape. I am concerned about a hazard there is enough to cause a problem. The panel is mainly A/C loads and have know idea what is causing this.

 

[jim dungar]

It is from 'defective', or at least poorly formulated, wire insulation.

http://static.schneider-electric.us/docs/Electrical Distribution/0110DB0301.pdf
"Tests have shown that the oily residue is actually the plasticizer that is a component of the resin used to make the thermoplastic PVC wire insulation. The plasticizer is added by the wire manufacturer to make the insulation more flexible."

 

[GoldDigger]

It is from 'defective', or at least poorly formulated, wire insulation.

http://static.schneider-electric.us/docs/Electrical Distribution/0110DB0301.pdf
"Tests have shown that the oily residue is actually the plasticizer that is a component of the resin used to make the thermoplastic PVC wire insulation. The plasticizer is added by the wire manufacturer to make the insulation more flexible."

That is one serious bulletin!
Since the residue will migrate along surfaces into the inside of the breakers as well as coating the busbars and insulators, I can see why they take it so seriously.
Looks like the OP is going to have a costly fix ahead.

It sounds like it could be coming mainly from the overhead feeders, but it could also be coming from individual branch wires running out onto the roof.
The phase marking tape could just be trapping some of the plasticizer where it can be seen instead of letting it sweat off unimpeded.

 

[jim dungar]

That is one serious bulletin!

Here is another reference, from Southwire via NFPA - Page 55, 6-71 Log #2936:
http://www.nfpa.org/Assets/files/AboutTheCodes/70/70_A2013_NEC-P06_ROPballot.pdf
Thermoplastic insulations, such as PVC, can have plasticizer migrate between the conductor and insulation. Plasticizer may drip from conductor ends onto electrical equipment and compromise the equipment if incompatible. This change also removes the incorrect term “electroendosmosis”. Plasticizer migration is not an electrical phenomenon and is not limited to dc circuits or wet locations. "

 

[KWH]

This equipment I think was installed in the 90's, all repairs would be an extra but what I am not clear on is if you installed all new equipment would'nt this problem keep coming back or are they saying to replace all conductors also.

 

[GoldDigger]

This equipment I think was installed in the 90's, all repairs would be an extra but what I am not clear on is if you installed all new equipment would'nt this problem keep coming back or are they saying to replace all conductors also.

They are saying to contact the manufacturer of the wire and see if they will replace the wires for you. Of course you might have to do all of the work....
Yes, if the conditions that caused the plasticizer loss are not changed, or even if they are once the breakdown process has started, it will continue.
If the wiring can still be safely used, you might have to terminate it in a separate box or in such a way that the plasticizer cannot get to the equipment.

 

[jim dungar]

...are they saying to replace all conductors also.

The source of the problem is the conductors.

From the Southwire reference, it appears it is a manufacturing problem. Changing conductors seems to be the only solution.