Why is gear oil leaking out of lower unit when running?

[Kranjack20]

Hello. On my 1998 Mercury 40hp tracker the gear oil is leaking out of this hole and it looks watery. I just changed the gear oil. A little bit of oil was seeping out of that hole when the motor was sitting but I didn’t think anything of it but when the motor is running it’s a straight stream of watery oil coming out of that hole. Here’s a video.

 

[Chris1956]

You need to smell that oil. It could be unburnt 2 cycle oil or gearoil, likely 2 cycle oil. If it smells like gasoline or oil it is 2 cycle oil. If it smells like rotten eggs, it is gear oil.

2 cycle oil is pretty normal. You might see if a carb is leaking.

 

[racerone]

oil is mixed with the gas.-----Some oil / gas mixture goes right through the motor.----I say it is normal.----Was there any water INSIDE the gearcase that drained out with the gear oil ?

 

[Kranjack20]

oil is mixed with the gas.-----Some oil / gas mixture goes right through the motor.----I say it is normal.----Was there any water INSIDE the gearcase that drained out with the gear oil ?

So I drained out the gear oil and it was perfect. No water in it.

 

[Kranjack20]

You need to smell that oil. It could be unburnt 2 cycle oil or gearoil, likely 2 cycle oil. If it smells like gasoline or oil it is 2 cycle oil. If it smells like rotten eggs, it is gear oil.

2 cycle oil is pretty normal. You might see if a carb is leaking.

I put it back on the muffs and had it running and after a few minutes no more oil was coming out but just water but then after having it running an alarm started going off from the throttle lever on the console. High pitch ringing. So great now I gotta figure out what that’s about.

 

[Texasmark]

I'm going to say that your water supply to/at the engine water pickup is inadequate on the muffs, if you don't have water impeller pump problems or sticking shut thermostats or if running at higher speeds on the hose, the pop-off valve stuck shut.

 

[QBhoy]

Not sure that’s actually oil. If it is..make sure you aren’t overfilled in the sump.
Was she fogged before winter and maybe that’s all it is ?
Other than that, maybe your muffa aren’t sealing right and it’s aerated water ? Possibly some salt water gunk perhaps otherwise ?