water leak?
Water leaking through that hole is a sign that you have blockage in the orificed connector below the regulator. Disconnect the hoses, remember which one goes where, and then un-screw it off the tank. Then, with a wrench, remove the brass fitting. This is the part that will probably be stopped up.
DO NOT CHANGE the setting of this regualtor. This vavle can cause major engine damage if not operating properly. Good luck........:cheers: