Leaking fluid but oil levels ok.

Here is a picture of the underside where the gas-like fluid is leaking:
Also, can anyone explain to me what the knob next to the blue circle is and what it's purpose is?
That knob is your oil pressure sensor. it turns on the oil light on the dashboard.

Seems your worried about oil coming out the bottom of the engine. I have a suspician that oil coming down the stator wires, if its not traced back to bad seals, is being leaked from the starter. The Starter o-ring will allow oil to pass, then it drops down onto the chain thou that hole under the starter. I picked up a new o-ring, from Fastenal. then doubled it up.

Even if you look at my petcock posting I found doubling up allowed for a better seal in the petcock. Fuel doesn't usually end up on that side of the engine. so if the petcock is still original type of petcock,the test is with the bike off, pull the hose off the carb if it continues to drip, then the seal is leaking. (engine off)

Fuel in the H-Tube, has been my experience a bad floats. I am sure that is not the last word on the subject. I remember when I was fighting that, I would get it functioning at really late at night, then the next day the air boxes were flooded again. so the next time I pulled out the floats, and shook it, found it it had a pin hole leak.

Cold is not an issue.

carb diaphragm isn't an issue in a leak. symptoms of a bad diaphragm is when its running, and at what rpm/speed. since your not running, diaphragm isn't the starting place for an issue. (as long as there is no hole its fine. I did replace mine thou with one from this web site, also got the carb holder from here too.) http://jbmindustries.com/yamaha650.html

There is a considerable amount of gas in the H-vent leading to both air filters, as well as what appears to be gas (smells like gas, kind of feels like oil) under the bike, coming from two cables near the kick stand.

Any time you have liquid over something, it has a chance to drain down. So the H-tube is connected to the breather, which will send fuel into the oil sump. of coarse its filling up your airbox with fuel. With out taking off the chain cover, its hard to tell what is leaking Like I said there is drive sprocket, it has a seal, the clutch actuator has a seal, then you have some seals for transmission parts that don't leak without some sort of abuse. So like I said earlier. one of the leaks if neither the clutch/drive shaft is not leaking then its being dropped down though the hole under the starter. which means only way for oil to there is if the bike is running.
Some info to keep in mind: the petcock was on Reserve for a couple weeks and the oil choke was pulled out to full choke for the same time (a mistake made by a frustrated past self that couldn't get the bike to start up); would this have any effect?
Not an issue. Provided your bike is using the vacuum petcock, unless the bike is running, its not drawing fuel anywhere. this bike doesn't have an oil choke. one thing I would suggest, is to use quality fuel. The cheap gas has ethanol, and as such in our bikes will block carburetor passages. I would use the cheap gas If I am driving daily. what would happen to me, is after 3 days of sitting around, I would have harder starting after day three. If I drive it regularly no issues. If you can find the fuel for classic cars, generally marked 100% fuel or ethanol free.

Hope that helps
Tobie
 
,
I appreciate your detailed response; it appears I have more than one issue on my hands. I now am feeling a bit foolish in my purchase of this bike in the condition that it's in for the amount I bought it for. Alas, you live and you learn.
The petcock seems fine; no gas coming from fuel line when bike is off and tube line is disconnected. The Starter O-Ring is where I'm going to begin my search for the source of the leak. Would this be the source for gas on my chain? I know that the breather line connects from the H-Vent to the oil sump and since there is gas in the H-Vent I'm going to assume that something in the carburetors is shot (going to take your word on the float bowls being the issue, although I might as well rebuild all parts of carb if I'm gonna change that out). That would put gas in my oil and engine, causing it to drip down the stator wires? It appears more likely that I have a problem with my Starter seal AND my float bowls/carbs rather than just one source to the problem- not what I wanted to hear.
It all seems to strange though, how quick the onset of the leak was. The bike had idling issues but no leaks anywhere; after I took off carbs, replaced some gaskets, adjusted idle mixture screws on carbs the bikes idling improved and would not die on me. However, about a week after this improvement is when I started to notice a puddling under my bike, smell of gas, and discovered the drops of gas forming on the stator wires.
Could it be possible that the float bowls in my carbs are the only cause to leakage?
 
I now am feeling a bit foolish in my purchase of this bike in the condition that it's in for the amount I bought it for. Alas, you live and you learn.
My wife owned this bike since 1996. about 1999 she stopped driving it, something about not safe for a mom to drive with a infant or something like that. it sat in storage until 2010 when I was able to start playing with it. I think we all learn something as life goes on.
The Starter O-Ring is where I'm going to begin my search for the source of the leak. Would this be the source for gas on my chain?
Like I said if you take the old o-ring from the starter, and you have a fastenal near you, just take it in there, you will get 10 o-rings for 2 bucks. so its easy to though one more behind to support the first one. perhaps you have a simuliar types of parts store. they typically take care of businesses, as oppose to someplace like menards, home depot where help may be helpful, or not.
Would this be the source for gas on my chain?
its possible, until you take off the clutch/drive gear cover its hard to tell. I keep opening it up, and thought I the last time I opened the case I put plenty of case adhesive hoping that will prevent any more leaks. When you look in there, the oil spray pattern will tell you where its leaking. if its caked,your going to have to clean it, and drive for a week, and check it then. At least the starter is easy. but you will have to have a gasket ready, or be carefull so you can use the old one. ie hope the previous PO didn't go nuts with the case sealant. So gas on the chain, The absence of issues with the carb, and all the intake boots, to carb, carb to H tube, H-tube to air filter. If fuel is still getting into the H-Tube, it is getting into the air filter. so the one filter is over the chain. so that just means its possible. typically I find the top of the stator wires are dry, so either fuel is evaporating really fast, or your really have a problem with that. My issue is typically oil collecting from any of the number of oil drains (two drains, one sump, and a filter) Then off the case there is drive shaft seal, and clutch rod seal. with the potential for leakage from the starter hole. Knowing that fuel is flooding the H-tube, that does mean fuel is getting into the oil pan. Not good. should change oil if it smells like fuel. you can disconnect the breather try to re-route that breather temporary. (just to keep the oil from getting into the crankcase.) as long as your not driving it, put a sponge on top of the breather for right now while your trouble shooting. Once its running Its not going to leak into the air filter.

is the carb shot, probably not. just take your time, open it up, find the floats, use the test from the manual, and If you have a bone yard near you, (motorcycle) get a new one. my boneyard seems they mail items, www.sportwheel.com. there is a lot of posts where noobs will accidentally break a float post. read up on that before you end up with a broken one. or maybe you have one that was not fixed right when this was last looked at? PO's they don't do everything right all the time. (It usually takes me 3 times to get it right)

However, about a week after this improvement is when I started to notice a puddling under my bike, smell of gas, and discovered the drops of gas forming on the stator wires.
Yea that seems like my issue. if it survived a week, my issue was over night. I would get it running at 10pm, or later. then the next day I was starting all over with not being able to start it again.
good luck
 
I was looking for something with definitive oil splatters. typically the chain will though oil very specifically, Oil dripping from clutch rod (under the yellow arrow) coats every below it. then the white thing with 3 screws that is your neutral safety switch. that has an o-ring that is also easy to break. (if you do anything with the clutch rod, make sure you don't lose the small bearings. there is two of them. my first experience want an issue then when others had mentioned that the 2nd bearing came out with the clutch rod, it happened to me too. (other one is in the cover). there is a second photo here, its just with the starter removed and you can see the hole that could leak oil, if it made it past the starter o-ring.

Starter drain.png
Starter drain2.png
 
Once again, I can't thank you enough for the information. A quick update, the carbs have been drained, H-Vent emptied of gas, pet-cock fuel line still disconnected, and I'm still getting a leak. The fluid leaking down the stator wires appears more oily to the touch and less smell of gas than before. This has to be coming from a faulty seal in my oil tank, right?
 
A lot of time these bikes get a oil leak from the grommet that the alternator wires go through. Best way to know is to clean the entire area and see where it is coming from.
 
Just now taking off the crankcase cover and whilst removing the forward-most cover, gas started spilling- a lot of gas started spilling, probably half a gallon's worth. The gas was being harbored in there and would drip down through the wires I'm guessing; but how did it get in the crankcase?!?! Still tinkering today, lots of cleaning to do.
 
Over flowing carbs. Drain the entire motor of all its oil including the filter and sump under the motor. That will get all the bad gas fouled oil out that could hurt the motor.
 
Just now taking off the crankcase cover and whilst removing the forward-most cover, gas started spilling- a lot of gas started spilling, probably half a gallon's worth. The gas was being harbored in there and would drip down through the wires I'm guessing; but how did it get in the crankcase?!?! Still tinkering today, lots of cleaning to do.

Under the alternator housing there should be oil from the motor. The four bolt flat cover is for checking /setting valves and timing. There only should be a little oil come out of that one when removed. All this should be done with the bike on its center stand so as little as possible come out. These things are all in the manual.
 
After removing crankcase cover and flat cover, draining bike of spoiled oil, and cleaning around where the chain is housed (which was EXTREMELY nasty) I noticed the rubber grommet for the alternator wires was wonky and the sealant the PO used had become un-sealed. I believe my accidental flood of the carbs led to the build up of fluid in the float bowls (possible one got stuck) and as a result my H-vent, allowing gas to creep down breather tube into oil sump, which then pushed it's way out of the mangled alternator wire grommet, down said wires and onto the ground. Does this series of events make sense, meaning I should replace float bowls possibly but definitely that pesky rubber piece housing alternator wires? Second question, where could I scoop up another; is this the right part?
Cannot thank you guys enough for your patience and information.
 
That is not the part you need. I would find the oem part number for it and try and find one.
 
After some looking that looks like a non-replaceable part. Maybe a hardware store or some electrical place might have something similar.
 
not exactly what I wanted to hear but at least I don't have to pay shipping for something!
anybody on here have experience with that little grommet and could shed some light on previous things they've tried?
 
:UPDATE/BUMP:
replaced a few gaskets, did some much needed cleaning, plugged the loose rubber piece housing stator wires, filled up fluids and after about an hour of trying to kickstart and screwdriver/solenoid start, keeping the battery on a tender, she finally came to life! still had same hanging idle issues and fluctuating idle and alas, this morning there is gas in my oil again. I've kept H-vent off so it's got to be my carbs right? I did leave petcock on reserve overnight with a nearly full gas tank but a good petcock shouldn't allow fluid to leak as far as i'm concerned. gonna check to see if the petcock is leaking out of either fuel line today while I purchase something to get these stripped screws off my carbs from PO (thanks...).

also, what does it mean to check the "plugs"? is this the spark plugs on the sides of the engine? when i disconnect them, the bike seems to want to start more so than when they are connected.
 
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