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For as long as I can remember, my power steering system has leaked and I always suspected the cap, so I replaced the cap but this didn't fix the problem. I've just been reinstalling the power steering ram, valve and pump onto my chassis and the pump fell onto its side for 10 seconds before I realised. Fluid came out through the cap seal (slowly) while the pump was on its side.
I've dismantled the cap to find out why it could be leaking:
Moulded into the underside of the cap are two grooves. I'm guessing these are breather ducts to allow the PS fluid to expand when hot and contract when cold. Thing is, I reckon they're also the source of the leak when the engine is running, even though the level of the PS fluid is correct according to the dipstick on the cap.
Question is, what would happen if I sealed the rubber washer to the underside of the cap and blocked these grooves? I think that would fix the leak. Would that cause a problem with the running of the hydraulic system?
You don't want to seal it so that air can't get in or out. Your problem is likely that the fluid level is too high when the unit gets to operating temperature. Or, the pump is malfunctioning and needs to be rebuilt. Check fluid level first....then do a pump rebuild. Chances are that the pump pressure regulator is not working as it should.