Yes, you have to keep it in a well sealed container or the solvent will evaporate out, leaving a thick mass of oil and lanolin. I have not had that problem because I use air tight containers to store it in.Works great! If stored, the mineral spirits needs to be added before use - I keep mine in an old whiskey bottle, and after half a year it started to leave a residue like lanonlin typically does.
Not sure I would rely on it without the humidity control, though. Then again, without the dehumidifier the shop gets mold. Quite a bit different from that half-desert climate you guys got in the central valley,
I built my shop in an unheated barn. The shop itself is an enclosed and insulated space, about 12x24 ft.
To address humidity, I bought one of those wheeled dehumidifiers with a tank and a hose hookup. It's plugged into a timer which runs for an hour twice a day at peak humidity times (2-3pm, 3-4am around here). Costs very little by way of electricity.
Winter turns every hunk of metal into a condenser. I put a cheap oil-filled electric radiant heater from the hardware store, keep it on the lowest setting. Keeps the shop at 40F, and again doesn't eat up much power. I no longer walk in to machines dripping with water. Some people put electric coffee cup warmers under or in their machines, but I haven't found those to be terribly effective.
On top of those systems, I filled a sureshot mister with Bob Korves' version of Ed's Red (basically ATF, odorless mineral spirits, and lanolin), and use that periodically (maybe once a month). Search around for forums thread on lanolin and you'll find a lot of discussion on different rust prevention approaches.
There are a few, Fluid Film being the most readily available here (the local hardware store even carries it - the real hardware store I mean, not the big-box store), LPS-3 being a pricey but effective variant. The problem with these, as mentioned in a different thread, is that they leave a thick, tacky coating. Adding mineral spirits seems to thin the lanolin enough to leave more of a thin, dried-wax coating.You can buy a ready made rust preventer based on lanolin, called Lanox MX4 I have found it to be very good for protecting clean metal. It's great in a marine environment.
There are a few, Fluid Film being the most readily available here (the local hardware store even carries it - the real hardware store I mean, not the big-box store), LPS-3 being a pricey but effective variant. The problem with these, as mentioned in a different thread, is that they leave a thick, tacky coating. Adding mineral spirits seems to thin the lanolin enough to leave more of a thin, dried-wax coating.