It will never separate sitting in a bucket or tractor. It has emulsifiers in it that bind the water to the additives.
I think it was last spring that another owner of a 300U successfully cleaned his tractor fluid. He reported on the process with alot of posts and pictures. I have forgotten his name already and he no longer posts here as he sold the tractor shortly thereafter. It shouldn't take long to find his post in the archives.
He used a hotplate and saucepan to drive off the water. I would just buy 10 gals of new oil and convert the old oil into BTUs in a potbelly stove.
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