I'm going to assume that at one time everything was working the way it should. You could go out and dig with no problems. Then you were using it one day and all of a sudden oil started to flow out of the vent on the reservoir. Check your suction hose to the pump for air leaks. I think what's happening is the oil is getting air in it and the reservoir isn't large enough for all of the air to settle out. Then you have oil mixed with air which takes up more space than just the oil.