I do an old Citizen L20 machine that doesn't have a chip conveyor in it. So I let them sit in the bottom of the machine, then scoop them out whenever, then put them in a bucket. After that, I tilt the bucket over another bucket and let the coolant drain into that bottom bucket.
I might let it sit overnight or for however many hours, but theres my coolant. And then dump the chips in someone elses barrel accordingly.
I could tell there was a lot of coolant going with my chips when I used to not do it this way and put the chips straight in a barrel, and come in the next morning and a coolant puddle would be dripped from that barrel, haha.
I have personally been wondering about the options of using oil based coolant as compared to water based coolant in these machines. I've seen both and didn't know what circumstance permitted which option. I didn't even know if all these machines could flip flop from one to another either.