Just a thought. If there is a leak from the chain oiler especially if the adjustment screw in the neck is screwed down tight it may be that the pipe from the neck down to the exit from the rear of the tank is fractured inside the tank. If the oil level is above the fracture it will leak out. I had this on a section members bike and I blanked it off as described.
Brian
I worry that I am not describing the chain oiler well when someone mentions tightening the adjustment screw in the filler neck. The history of the UFM shows that there were two tubes used to deal with oil return and providing a breather. On the Series B machines, these two tubes were brazed to the filler neck of the UFM. The tube nearer the drive side was the oil return to the tank. The tube nearer the timing side was an atmospheric breather. The atmospheric breather would guide any oil that exited out the breather tube at the rear of the UFM to the chain.
This remained the same on the Series C models, but with a few refinements. Instead of brazing the return and the breather to the filler neck, a steel block was brazed to the filler neck. The two tubes entered the bottom of the filler neck. The return oil pipe passageway continued straight up to the top of the block, where an adjustment screw was fitted. A third hole was drilled at the bottom of the steel block to allow the oil to return to the tank.
The atmospheric breather tube passageway in the block was drilled halfway up where it stopped. A fourth hole was drilled crossways through the block from the timing side of the block, which is not visible. This hole joined the two passageways for the return oil and the atmospheric breather.
I believe that the adjuster screw for the chain oiler does not have a seat, so it cannot stop the flow of oil from the oil return passageway. It probably just acts as an obstruction in the passageway that gets larger or smaller. Screwing the adjuster down tight will not stop the oil flow to the chain oiler, it simply slows it down as there is no seat to be closed off. Additionally, the oil that is flying around in the filler neck can travel down the hole for the atmospheric breather on the timing side of the steel block. This 4th hole (I have called this a bypass) is a direct path to what we are calling the chain oiler tube (which cannot be blocked off) and the passage continues until it tees into the oil return hole. This is the passage that the adjuster screw is blocking or unblocking.
Apologies to all who understand how this system works as I am beating this dead horse mercilessly, but I did not fully understand how this system worked until Greg Brillus mentioned the Series B arrangement to me. Brian's experience with the fracture is instructive, but ultimately the bypass hole makes the chain oiler tube a breather that can only be blocked by running a drain plug (A26) in the threaded hole at the rear of the UFM. The chain oiler tube cannot easily be blocked from the filler neck.
David