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My L98 has the lower oil seals (fit over the valve guides with a metal band around them) and the upper oil seals (O-rings) on intake & exhaust valves. My valve springs also have the tin "oil shedders" on top of the valve springs.
I'm not sure what purpose the O-rings serve; maybe to help seal under the oil shedders.
Anyway, I tossed the oil shedders and replaced both the lower oil seals and the upper O-rings with OEM parts from my local Chevy dealer.
Do you have a GM Shop Manual, as it will show the valve spring details for your year L98?
The seals are on intakes because the valve guides are exposed to vaccum, where as, the exhaust are not. Any oil trying to pass down the exhaust valve guides, gets pushed back up, by the exhaust pressure. The o-rings do stop oil from leaking through the guides, and should be used.
Correct...If they are good, and working correctly, they will allow only enough oil past to lube the stems. Of course when they're worn out, you get smoke. An ole' timers saying was...smoke on acceleration-rings....smoke on deceleration-seals or guides. Smoke on start up is usually seals or guides too.
When I was doing the cam on my car, I replaced the springs and seals also. The intake and exhaust seals were different part numbers. Can't remember which, but one set was red and the other were black. These were directly from GM.
the umbrella seals are the OEM setup; I installed a Fel-Pro set, with Viton seals, so both the intake and exhaust has the positive seals instead of just the intake. No real difference in performance, but I figure the Viton should last longer, and it just seemed less crude than the umbrellas.
A common misconception is that exhaust valve stem seals aren't as important as those on the intake side because they don't operate under a vacuum. On the contrary, exhaust gasses rushing past the valve create a low-pressure area near the lower end of the valve guide, which tends to draw oil into the combustion chamber.