Jennifer,
The Bendix installation manual for the air compressors mounted on the Series 60 engines clearly indicates that the discharge line from the compressor to the dryer should have a downward slope to allow oil to drain back into the compressor.
There is mention if a couple of tests to perform on the discharge line to see if you have excessive oil discharge. Google around and you find plenty.
If you do decide to replace, the more recent designs use a replaceable cartridge that looks like a great big oil filter.
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Richard Rhonda Ty and Alex Entrekin
1995 Newell # 390 DD Series 60, Allison World Trans
Subaru Outback toad
CoMotion Tandem
Often wrong, but seldom in doubt
Rhonda's chronicle https://wersquared.wordpress.com/
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