case back hoe

Recently purchased 780B Case backhoe. While changing hydraulic fluid filter, fluid looks milky. "water"? Question is how do I change fluid. Reservoir holds 15 gallons - system holds 28. What should be my next step? Thank you, GP
 
Very tricky situation because it's in all the cylinders and lines. If it is milky the water may be emulsified in the oil which on one hand may save the pump from seizing up. if you drain the tank first see if any clean water comes out first. If you get pure water there is high risk of ruining the pump. You may want to send in an oil sample to ge it tested. Someone may have got a good deal on cutting oil for drilling and cutting threads and put it into the hydraulics, at least it wouldn' be water. You may have to do several oil changes unless go to endless task of trying to drain every cylinder.
 

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