I'm using a modpack with custom ore generation (literally - Custom Ore Generation mod). I've written COG scripts to spawn Oil Sands in the desert, and disabled the oregen of Traincraft in the config file. End result, oil sand would not process in the Distillery.

Re-enabled it, and Oil Sands do process in the Distillery.

This is not a major issue for me as I can write a script into COG to dynamically remove ores on generation (though it does slow down the world gen). If this is not a bug, perhaps splitting the option to "Ore Gen:Y/N" and "Distill Ores:Y/N" (or better yet, a JSON with configurable item:yields!) might be worthwhile as an enhancement?

Thanks!