Most likely your carb float needle is leaking. A new float needle might help but the sure way to stop it is install an in-line fuel shut off valve and use it whenever the engine is not running. Many engine are ruined by what you describe - gas in the oil.

Walt Conner

Thanks Walt. How does the float keep fuel out of the oil? Please advise.

As walt describe the carb. attached to the intake manifold. when the needle valve leaks the pressure from the gas tank being it's above the engine on your model I think with no fuel pump gravity takes it course (even with fuel pump gas can still siphon from the gas tank through the fuel system and into the crankcase even though the gas tank maybe lower or equal to the engine).

Gas runs from the tank down the hose to the carb. the float maintains pressure on the set by the floating in the gas that in the bowl (hense the term float). This pressure prevents gas from gravity feeding inside the carb. running down the intake manifold which leads to the combustion chamber. Once gas this this far it leaks past the valves (which maybe open depending on where the engine stops when it cycles down) into the combustion chamber and on top of the piston. gas in circles the rings and leaks pass them into the crankcase. This gas in the crankcase will delute you oil causing the engine to lose it's ability to cool and lubricate which causes wear. enough heat and wear and the engine it toast. Usually the crankshaft to rod bearing journal goes first either seizing the engine or a loud bang heard when the connection rod lets go.

To correct the problem, clean the needle and seat (may just be a piece of dirty, gum causing it not to seal) replace the needle and seat, check the float for holes. Most will add fuel cut-0ff valve in the fuel line from the tank to the carb. This releaves any pressure that gravity applies to the carb. and stops any gas from floating down hill.

It it very important you fix this and change the oil or your engine will eventually Blow up due to the lost of cooling and lubrication. It should be clean as a whistle being some gas has leaked into the oil cleaning all the sludge out of the crankcase if you don't change the oil often. Hopefully as walt said no damage has been done yet.

Thanks rcmoser.
Will this allow fuel to leak out of the engine as well? I pulled the spark plug and the fuel spewed out. With plug back in, the fuel was still leaving the engine from somewhere. Perhaps gasket?

As walt said most likely it the needle not seating letting the gas to gravity feed all the way to the crank case through the comb. chamber (gas running out the spark plug hole) down the intake manifold, out of the carb. pass the needle and seat from pressure from weight of gas above the engine remove the gas hose from the tank and I bet the leak will stop. I don't have time to look you model up I suspect it don't have fuel pump? if it does then could be leaking down the vacuum tube into the head (the hose that goes from the pump to the head. IMO thats the only other path the gas can get to the comb chamber.? the gas is still leaking into the comb chamber after you put the plug back in cause you haven't fix anything yet. Got to follow the leak and fix whats leaking? if gas in the crankcase you better change the oil or you will eventually get the big bang theory!

You bet! Thanks for all the help Walt and rcmoser. I'll let you know what happens. Would it make sense to overhaul the carburetor at this time?

Carburetor is fixed. I ordered an overhaul kit and fixed it myself. Thanks for your help!!!

Why the rush? It's only 15+ months!