Well, it could possibly be oil added to the cylinders/fogging that is leaking out, but I don’t think so, not in that location….
I would get the unit pressure tested before using it…You don’t want to risk big gearcase damage…
Unfortunately, not even slight leakage is acceptable…Remember that when oil leaks out, usually water leaks back in…This is not like a car engine that seeps/leaks out a little oil…You can always check the oil level on a car engine and add if necessary. It’s pretty difficult to check the oil level on this gearcase….And even if it appears to be full, it might just be full of water….
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