That's an excellent question. and I spend time on every rebuild looking at this. I think the long part goes to the bottom. There is the wide section of the groove in the cylinders I believe the lip is designed to help seal that area perhaps to keep water out. I've seen a few channels broken maybe due to freezing water? It's gonna seal whichever way you install it. I use waterproof grease on all the O-Rings except the one on the top of the head. Not much help I know. LOL