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I received some red worms that I am currently keeping in a plastic container. I would like to make a hole in the ground and keep them there, lining the hole with something breathable so the worms stay there.

The issue is that where I want to make the hole (a corner in my backyard) is right next to a huge Schinus molle tree. I remember reading somewhere that this tree produces some oils that could be toxic for insects or something like that.

Does anyone knows if an in-ground vermicompost bed next to a Schinus molle will be affected by its roots, leaves drops, etc?

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Although Schinus molle does contain two compounds with mildly allelopathic properties (Myricetin and Quercetin), the tree has not been found to have any pesticide or vermicide properties. You should be fine siting the vermicompost bed under your tree.

See here for a PDF containing an analysis of the chemicals in that tree species (note - this link will automatically download the PDF).

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