arunmrao and gdodd- Thanks, the loading pattern was never a problem.
kieke - run a design of experiments with the soluble oils to see if you can turn on/off the problem. Good luck!
formulaross - exactly! The problem occurred after the ban on trichloethylene. I wish I had more research on the surface effect of cutting oils on steels. Also I agree, steel grade makes a difference.
rido - we wouldn't be in the heat treating business if we didn't use the right steel, temp, carbon pot, etc. (smile)