FINALLY THE ANSWERS WE HAVE BEEN LOOKING FOR!
Unkie George gets a second Daily Shout Out equipped with a Mad-Phat Big Ups.
He states and I quote:

"So where do the crayons come from......
I believe that Crayola has some volcanic mountain factory that they use. That could explain how they melt the wax, and the varying temperatures of heat can cause the color changes, which explains why they come up with such unusual color names... but you notice they never give you depressing color names, like flu mucus green or bad bruise yellow.
Crayons are a happy thing, that is why i believe they use rolling papers to wrap the melted wax. After the peeps finish the product they may be getting happy, which explains the names like sunset orange and sky blue....man!
My other question is: Why are children always so happy while coloring? THE CRAYONS ARE WRAPPED IN ROLLING PAPERS. Now the contents inside are non-habit forming, but one could only imagine the consequences."

How do you like them appies. Yeah I said Appies!