Hello All - I will start with the problem, then get into my 2000 LR Disc. II history.
There is a black 1/4" hard plastic tube that comes out open ended just near the transmission. It spits out oil when I rev up to ~1500rpm or higher. It can pour ~16oz in less that 5 minutes. The oil smells of gasoline/fuel. The images I attached (1 - 3 )show three views.

1. Top engine view with fuel reset button on top left for reference. One tube J-hooks and is open ended. The other tube appears to loop/circle back under.
2. View from under the vehicle, passenger side just on top of the transmission. Three tubes on clip brace in view. One should be the J-hook/open ended at top. The other two, I would assume are the "loop/circle back under" tube, and as such should be the same tube coming back.
3. One of the three tubes under the vehicle is open ended (coming from the front towards the back) and ends just at the transmission oil pan. THIS IS THE ONE LEAKING OIL.

I'm not sure if it is visible in the close up (pic. 3), but the tube has a groove/lip on it. Almost like it was meant to push into an insert.

My oil light comes on, not my transmission light. It might be worth mention too. My oil dip stick sometimes shows oil to the "add" line and sometimes it comes up DRY! I've had this problem for nearly 2 years and did find some forum chats on the subject.....but never really found a remedy for this issue.

History of my 2000 LR Disc II - Hunter Green:

• Bought it from CarMax Monrovia, CA - Dec. 2004 with 36K miles. A fleet vehicle with company that went bankrupt in 2002. Vehicle ended up at CarMax 2 days before I bought it.
• Moved to the Bay Area in 2005 and used it to travel to & fro until 2008.
• Its been through 10 miles in 2ft of snow in Yosemite and crossed a river deep enough to touch water with my hand hanging out the window, ~30 yards across

Fast forward 10 years - speedy sleeve on harmonic balancer (my dad is a 50+ year master lathe/machinist), new timing chain, new water pump (all me with help from Youtube) marriage, 2 kids, house.....Now I sit at 222,000 miles, a bit of a hard start noise, oil leaks as expected, likely down to ~9 mpg, 3-amigos all the time but NO ENGINE LIGHT- Recently changed out all four O2 sensors.

This is my baby, the car I wanted when I was 12 years old. I bought it, and now despite all the issues and how easy it would be to just go and by a Tacoma....I can't see myself not looking at this amazing body style.







Help - please !

 

If fluid is coming out of those = Vent lines for the TC or Transmission. That will have nothing to do with your engine loosing oil.

 

So we can rule out motor oil. Am I bleeding transmission oil, and if so, what would cause the pressure to blow out the vent lines? I'm talking a stream of oil down the street. I ended up putting a 16 oz bottle with hose extension and tied the bottle to a hard line (to keep from staining the street while testing around the block). It filled the bottle in one city block. Parked back home now. Thank you for your help and interest in this matter. I want to get it back on the road but don't know where to start.

 

Curious to know why one of the vent lines is looping back. Did you ever had both u-shape ends showing by cylinder 8?

 

Since you collected the oil in a bottle, what type of oil was it? If you still have it, post a pic.

 

One of the vent lines has a loop in it = stock.

 

Ironically, I took the bottle of oil to work last night to have my employers diesel mechanic identify it. It's not motor oil viscous (I use 5W-30 full synthetic). Even when cold, it acts more like transmission fluid and had a slight gasoline odor to it. I suppose I can generate more oil this morning and post a clear image of the oil with sunlight. I guess what I am trying to sort out is this: If the vent lines are indeed leading from the transfer case or transmission (I have yet to find the end of the lines), then I should be able to say its not motor oil. However, there is a direct connection from when I add motor oil to when the tube spits out oil.
I hope I'm not jumping around too much here. I had mentioned on my first post "My oil dip stick sometimes shows oil to the "add" line and sometimes it comes up DRY! I've had this problem for nearly 2 years and did find some forum chats on the subject.....but never really found a remedy for this issue. I can literally add 1 quart of oil and the dip stick comes up dry, and the tube begins to bleed oil.
Could it be the Oil Separator is clogged and the vent tube is somehow connected to the valve cover/oil gallery? I might be talking apples to oranges here but I am at complete loss and cant sort out where the pressure would be releasing from, or from where oil could possibly be leading into the vent tube. Engine oil versus Transmission oil.....and why?

 

Ok that is weird those vent lines should not connect to any where you get engine oil.
The transmission line comes from the transmission body
The transfer case line comes from the transfer case body
There is one for each diff as well

My only thought is the the seals at the rear of the engine are completely shot and dumping oil into the bell housing. You can check that pretty easy there is a round inspection plate held on with 3 bolts on the bell housing.

Put a catch basin under there and remove the plate, you should see significant oil if that is the problem.

 

Further to my post even with engine oil in the bell housing it could not get to the transmission, too many seals way too high up.

But it sounds like you have 2 issues

Oil loss and transmission over pressure you need to get them both sorted out

 

Ok stupid question but are you topping up your oil with the dip stick removed, then inserting it into the tube to read the level? Or are you adding oil then pulling the dip stick to read the result? Only one of those ways is correct, the other will lead to a wrong measure.