Is the oil cooler next to the oil filter. If it is I have water coming out of the plug by the oil filter. I was going to install a manual oil gauge at that location. When I started taking the plug out, water started dripping. I didn't take it all the way out.

 

I change out this sensor plug on the 89 I had a while back. Normally you need to drain your oil or oil pours out of this plug. I would pull the dipstick and check to make sure it isn,t white creamy. Hopefully you do have a outside source for your water and its not coming out of the oil.

 

The oil is not milky. I have heard if you let truck set for a long time condensaion will build up. I am new to the 6.9. I bought the truck about 2months ago and it had been setting for a long time. Thanks for your reply.

 

Like you said I've heard condensation can build up in a motor which sets up a long.