Alright thanks for your input. I will verify again but am pretty sure its coming out right where the picture is pointing. I have pulled that apart in the past to check the IP timing after I changed the timing chain. So figured that's what caused it to start leaking now. I tried to tighten it down some more but it seemed pretty tight and I couldn't find the exact torque spec so didn't wanna over tighten. I remember that I did torque it when I checked the timing. Just don't recall what the torque was.

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1982 300D