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That is the float Bowl you are pointing at. And the nipple on the bottom of it is a overflow and also a float Bowl drain. To drain the float Bowl loosen the screw there on the side and that will open it up and let gas drain out of the bowl through that nipple. And that nipple has a tube that goes up through the float Bowl up to the top of it. for when gas gets too high. And lets it run out of that hole as an overflow.
If it is leaking out of that nipple, then the needle seat is probably not turning the gas off when they float raises up.
And I have seen it come out of there on a few occasions because the tube on the float Bowl has a crack in it.
Hope this helps you
Have a good one ???
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