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In Reply to: 318 oil leak posted by Jeff Wall on Saturday, April 12, 2008:
Jeff - I would pull the black shrouds off the motor on the oil filter side of the engine. Check the oil pressure switch mounted near the oil filter.
Also check around the top mounting bolt that holds the oil filter/pressure switch adapter plate to the block. Oil leaks from this area often are overlooked. The oil leaking from this area is pulled toward the back of the engine and can often give the appearance that the leak "may" be coming from the flywheel.
If it's the pressure switch, a new one is in order. If the top bolt is leaking, sometimes a simple tightening will resolve the problem, but sometimes removal of the adapter plate and a new gasket are needed. The top bolt is supposed to have sealant on the threads because it enters into an oil passage within the block.
If there are no signs of leakage from the pressure switch or the top mounting bolt, then you may be in for removing the motor. It's not difficult to remove the motor, just have to disconnect wiring, some linkages, bolts, fuel line, most of the body work, disconnect the drive shaft. Take photos!!! Those will help put things back correctly. - Dave