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Found this info on a Subie search:

 

Oil leak: An oil leak between the oil pump and block is repaired by drilling out the oil return hole to 6mm diameter. (1995)
Anybody had any experience with this? I noticed some oil accumulation on the bottom back of my "new" 95 Legacy's engine, but have not noticed any oil drips in my driveway yet. Haven't had it long enough to see if it might be a bit of a leaker.

 

 

 

For the curious, here's the rest of the "issues" reported for 95-99 Legacy cars. I know a few new or possibly new owners of these cars have asked about some things like this. Long-term owners may want to comment...

 

Trouble Spots

 

Alternator belt: The company issued a (nonsafety) recall to replace the alternators. (1996 and some later)

 

 

Automatic transmission: Severely cracked secondary pulleys and pump drives cause the ECVT to slip. (1995)

 

Automatic transmission: The automatic transmission dipstick may break requiring the broken bits to be removed. (1995-97)

 

Brake noise: There may be a buzzing sound coming from the ABS (antilock brake system) hydraulic unit motor and/or an ABS warning light glowing, caused by a faulty ABS relay for which there is a revised part. (1995-97)

 

Brakes: Some of the ABS (antilock brake system) hydraulic motors were faulty, causing them to run intermittently even after the key is turned off. (1995-98)

 

Dashboard lights: If the check-engine light comes on in cold weather it is likely due to ice forming in the vacuum line between the engine and transmission. (1995)

 

Oil leak: An oil leak between the oil pump and block is repaired by drilling out the oil return hole to 6mm diameter. (1995)

 

Poor transmission shift: Hesitation or poor acceleration may be due to the powertrain-control module (PCM) misinterpreting normal engine vibrations as knock, and retarding the ignition timing requiring a replacement PCM. (1999) Rear axle noise: Vibration and noise from the rear when traveling over 65 mph on vehicles with AWD requires countermeasure dampers on the rear crossmember. (1997-99)

 

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The oil return hole is 6mm in diameter but apparently, on some engine blocks it was partially restricted by a casting flash which caused a build-up of oil pressure at the pump outlet. There's a mention of it in the Motor magazine's 3-part article on Subaru t-belts, cited a few times on this forum. The article says to clean the hole with a drill. Still there are other, more common causes for the leak.

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Like a leaking oil seal. Mine started leaking oil in the same general area. I thought it was something major. Only hard part was putting the timing belt back on correctly. Josh has the link to a site that basically walks you through it with pictures. I could even help you if you had any questions.

 

 

Hope this helps. Mine was so bad it covered the back window in oil and created it's own smoke screen.

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my '95 legacy leaks at the rear of my oil pan gasket.

 

And in order to replace that... I have to pull the engine. So... I've got this spare EJ22 sitting at a friend's house. New bearings, new gaskets, seals, and I think I'm good to drop it in. It's a pre '95, so I have to use my current throttle body. But I'll switch over all of the injectors, sensors, and wiring when I go to do it. That should take care of all oil related or engine mechanical problems for quite a while. ;) and I'm sure cams, decking the heads, new valvetrain, new water pump, lightened crank pulley and a lightened flywheel will help.

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