Originally Posted by Robfike
... Much to my very happy surprise they found that the oil filter adapter was the culprit...
I had the same leak on my 7.4 liter engine repaired just a month or so ago. Apparently it is a fairly common leak path. I'm with Rob though - it looks a whole lot like a leaky rear oil seal.
I had planned to let the shop replace the oil cooler lines Terry mentioned because one of the lines was obviously leaking at the flex-to-hard-line union near the cooler itself. To my surprise, the shop said the leak was power steering oil dripping on the line and not motor oil seeping out.
After later verifying the shop was in error, I went by the local Chevy Dealership and asked for new lines to install myself, "Sorry, but those lines are NLA - No Longer Available."
Deciding to get a seasoned, honest professional's opinion on the lines' availability, I emailed overlander63 with my tale of woe. Within an hour he had replied with the telephone number of a Chevy Dealer on the west coast who had the lines and had already set aside two for me.
Mrs. Claus ordered them for me, and I installed the lines this past weekend.
Thanks Terry - I really appreciate your "up & beyond" help with the oil lines.