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The 1/2hp model holds around half a quart of oil so it may have just been over filled. What is worrying is that it leaked at all. Any small leaks can be patched with superglue gel if allowed to harden overnight. Make sure your patch will not interfere with the impeller and it should hold for years to come. If you can not locate a leak and no further oil is coming out monitor the unit for over heating for about 4 hours of running time.
I am sorry to hear your getting oil, this is not a good thing. If you remove the pump from water and disconnect it from any power source, try removing the lower housing and take a look around the impeller if you can. If the leak is coming from around the edge of the main housing your in luck, it is probably the main seal that can be replaced without too much trouble. If the housing is cracked or leaking near the bearing I am sorry to say it would be best to start looking for a replacement pump.
What looks like 'oil' coming out of your pump is actually water! It has leaked and is fully contaminated. The seal for the pump must have leaked and it filled up. Take the 'big screw' back out and drain it and let it dry for a couple days. Then use some silicone as a gasket and put it back together. You may run again! It will probably fail sooner rather than later with a bad bearings from the water damage. That's what gave it the oily appearance.
Magnetic Drive: In a magnetic-drive pump, an electrical charge creates a magnetic field that causes the magnet on the impeller to rotate and pump water. Magnetic drive pumps are completely sealed and do not require lubrication. Because they do not contain oil, magnetic drive pumps are safer for ponds with fish as oil leaks do not occur. This type of pump does not generate high head heights, meaning it is unable to lift pond water vertically, which you might need to supply water to a fountain.
Work best in cleaner environments with little or no debris Highly efficient, cost-effective operation Since they have no seals to wear out, they require little maintenance Occasionally clean the impeller and its chamber to ensure efficient operation
Direct Drive: Direct-drive pumps have an enclosed motor that is powered by electricity, which turns the impeller shaft. Direct-drive pumps achieve significant head height so they tend to work well for fountains or waterfalls. Some models seal the motor in an oil-filled shell with seals around the cord and impeller shaft. These are risky to use if you have a pond stocked with fish as there is an ever-present danger of water contamination if a leak occurs. Many newer pumps, however, feature alternative lubrication over oil that is safe for fish. Look for oil-free models if you house fish or other aquatic life in your water garden.
Typically more expensive to operate Ideal pump type for fountains or other accessories Pushes water rather than pulling it Not easily repaired by the user