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I started my 51 M38 up for the first time this year after getting new batteries. After warming it up. and taking it for a very short trip, I noticed a oil drip coming out of the bellhousing drain hole. The engine warmed up for about 10 minutes before the run and I did not originally notice the oil. I did close the fording valves for about a minute to check their operation/effect on the engine RPM before I took the 1/2 mile run. My question is, could closing the valves and pressurizng the engine have caused the oil to appear? I know that some oil should be pushed out of the engine but is this typical?

One way I could verify it is to let the oil drip derain out overnight and the do the same warm up and drive but not activating the fording system.

Just looking for somr guidance and advice.

Thanks Ken

Ken,
My comments:
1) Yes, activating the fording system will pressurize the crankcase and can push oil through seals.
2) You said this was the first run this year. It is possible your rear main seal was drier than usual and not up to its full ability to keep lube in its place. Depending upon the type of seal it may swell and seal with use.
3) Have you changed your oil recently? My GPW pushes oil if using 10-30. after changing to slightly heavier diesel engine lube it has stayed very tight. If your jeep has gone a long time between oil changes you may have some dilution that lets the light lube get by the seals a little more easily.
4) You are sure it is engine oil and not gear oil right? The T90 front seals tend to drip.

Change the oil and put plenty of miles on the jeep (without enabling the fording system) to get things back to normal operation.

Tom