It looked like the air hose had been rubbing on the oil filter housing and had created a hole. Strangely, the hose wasn''t really touching the oil filter housing at that time. I decided to check our online technical information impact source for a BMW factory technical tools service bulletin that could shed some light air on this problem.Great! There was a bulletin that covered this exact problem and here''s what it described:Some BMW M3 models, produced from impact and tools September 1995 through June 1996, equipped with the M54, S50, air or the S52 engine, may have an upper impact radiator hose that can come in contact tools with the oil filter housing only when the engine air coolant is at operating temperature. The contact is due to coolant system pressure and expansion of the hose.Checking the clearance between the upper radiator hose and the oil filter housing must be performed when the impact engine is cold.

It looked like the air hose had been rubbing on the oil filter housing and had created a hole. Strangely, the hose wasn''t really touching the oil filter housing at that time. I decided to check our online technical information impact source for a BMW factory technical tools service bulletin that could shed some light air on this problem.Great! There was a bulletin that covered this exact problem and here''s what it described:Some BMW M3 models, produced from impact and tools September 1995 through June 1996, equipped with the M54, S50, air or the S52 engine, may have an upper impact radiator hose that can come in contact tools with the oil filter housing only when the engine air coolant is at operating temperature. The contact is due to coolant system pressure and expansion of the hose.Checking the clearance between the upper radiator hose and the oil filter housing must be performed when the impact engine is cold.