It is possible engine oil is seeping into the combustion chambers. Oil is being mixed with the fuel & air mixture, leaving behind high amounts of carbon, seen as excessive black or blue smoke; being emitted from the tailpipe. Oil seepage may occur due to defective piston rings, valve seals, Positive Crank Ventilation (PCV) system, and/or loose spark plugs; if the engine has worn out valve cover gaskets.
You can sell this Mitsubishi Montero out-of-state without a California smog check however you will need to follow the smog check laws of the state where you plan on selling the vehicle.
As far as the vehicle retirement program... if your Mitsubishi Montero is eligible you may receive up to $1500 for it, depending on your income status.
More information on the California Vehicle Buy Back Program.
