Correct way to install pan gasket

Pan gasket was leaking oil on my Farmall 350. Pulled the pan off today and it appeared that the front left corner was leaking. It was a cork gasket that was pasted to the pan, but not to the engine side. Is this the right way?

I'm picking up a new gasket tomorrow from the IH dealer. Do I "butter" one side or both? And, how much torque on the bolts? What is the best brand of gasket sealer to use? Sure would appreciate the advice any of you guys have.
 
Gordy: In an ideal situation, no sealer would be needed. the truth is these tractors are old and have seen lots of work. First off, I'd put a straight edge along the contact surface of the pan and straighten those areas that are are not true (carefully). I use Permatex black #2 non hardening gasket maker. A thin coat on the pan, set gasket on it, let it sit a few minutes and then "butter" on top another thin layer before putting pan back on engine. Tighten uniformly and carefully - these bolts shouldn't need a great deal of torque to seat everything. I'm sure others have other ideas, but I hate oil leaks. Craig
 

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