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I had a K&N on my 95, and I kept it properly cleaned and oiled and had no problems. Silicon was low on oil analysis. But I felt the paper was doing as good, so I changed both trucks to the TYMAR. Now I don't worry about any maintenance on the air cleaner, just change it when dirty.
Boy did you open a can o`banter
I myself run a k&n and have no problems whatsoever, my thought is not to over oil the element as to suck oil into the turbo,doesn`t sound that hard not to do. Ive got damn near 130k on my rig (pullin alot of wt.) still doin great MYOP
Go back and read some of the old posts about the K&N, you will find both positive and negative info. All I will say is that K&N is the only filter recommended by Gale Banks engineering, that being said carries some weight. I have not had any problems with mine, return tube was always clean. I also run K&N in my gassers.
Check out some of the other threads on this topic. K&N filters aren't that good for turbo diesel applications and Cummins specifically says not to use them. I would tend rate information from Cummins a little higher than Banks regarding diesel engines.
One of the problems with using the K&N is the poor seal you get with the intake box for the filter. The OEM box isn't that good and without a good seal you risk the very strong chance of dusting the engine and ruining the turbo amoung other things. I ran a K&N for awhile but I could see where dirt was getting by and showing up in the intake between the turbo and filter. I would say use with caution because of the crummy air box if for no other reason. Hope this helps.