It is a fuel pump. Oil emitted from that or lines means one of several issues. The breather controls crankcase vacuum. If it fails as a check valve, excessive loss of crankcase vacuum happens and flow increases with it able to carry a mist of oil out the line thru the pump and usually on to the air filter cavity as well. Another possible problem is a head gasket failure which then adds compression pressure to the crankcase over powering the breather. Another most common problem is oil over full or diluted by gas. If over full or very thin put a drop of oil on a piece of paper and wait 5 min to see if one consolidated ring is shown or gas creates a secondary ring which indicates gas dilution caused by a carb float problem. some find a flammability test of the oil defining as well. A lighter to the freshly dipped metal dipstick is ok for a badly diluted oil. The fact that oil appears under PTO load is a sign that all of the above are possible. Another quick test requires two people. remove the dip stick and seal the opening with your hand. Have someone start the cold engine and sense a vacuum or pressure. The only value of this test is proof of pressure or lack of vacuum, now you have to find the cause. Also make sure the oil is not hot for this test and not over filled. A compression test is not truly valuable to prove a bad head gasket, in stead a leak down test is needed. Short of that, prove all else not at fault and replace the head gasket. You can buy a manual for the engine. Enjoy.