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Gotta agree with Paul. I've never oiled the inside of a sheath. Little over 16,000 sheaths now. If not oiling the inside was bad, I'd of heard about it by now. This is just a normal batch around this Rancho.
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I do this about every two weeks. Each one was treated with pure neatsfoot oil on the outside and a very light coat at that. Allowed to set and then finished with BagKote. 62 in this batch if I count right.