Here is a vaguely related excerpt from an obscure work:

In a lively argument regarding diction, gloating by the opponent did not last long after it was determined that condensate is a real word, but only a noun. Another debater who years before was backing connotate as a real word had lost his bet. Maybe there are some hillbillies who think tarnate must be a real word.

Maybe permutate is dregs produced from distilling by permutation?