c-263 oil pan find

Pulled the pan off my f656 with c-263 motor. Found a castellated nut in the pan. Looked all through the parts diagrams and can't find anywhere this could have come from. Any ideas? The motor has a knock, despite finding a loose valve seat and having the head redone. So it is back in the shop for a bottom end overhaul.
 
Oh, and it burned 6 quarts of oil in 4 hours of disking, but no visible smoke out the exhaust. No oil in the antifreeze. Very little smoke out the bottom breather. Rear main drips some oil but not that much. No major oil leaks anywhere visible on the motor. Even though no smoke out the exhaust, fouls #2 & #6 plugs with big goobers of oily carbon every 8 hours of use. Where could the oil be going? It's a hydro but did not see a rise in the hytran. Definitely time to pull the motor apart & do some detective work.
 
I remember when the oil consumption on my D282 in a 706 did that. When the motor came apart there was scored pistons and cracked sleeves. How big is the nut? could it be from the front of the timing gear area?
Good luck.
 
Take a close look and see if it is LH threaded. That would be the worst-case scenario.
 
Well at the moment i can not think of where it would be from . Your knock is piston slap or wrist pin . Your sucking oil is probably due to scoring in the cylinder walls due to piston swell due to preignition of either the total advance being off or improper fuel. The gas part has become a problem for the higher reving gas engines over the past couple years .
 
What size nut is it. The governor gear uses a 7/16 nut that is a locking nut and might be mistaken for a castellated nut.
 
well I got the engine apart. The piston skirts are badly worn & scored, and the oil control rings are pretty worn. Hard to believe it would burn that much oil without seeing it in the exhaust.
 

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