That would be the high water vent that is puking out the hot oil likely.

On the Jeep auto transmissions I have seen, there is a hole under the
dipstick cap on the top side of the tube that is the high water vent.
If you pull out the dipstick, you should be able to see this hole. The
cap covers it and acts like those button vents by trapping air under it
if you get that deep.

Mike
86/00 CJ7 Laredo, 33x9.5 BFG Muds, 'glass nose to tail in '00
88 Cherokee 235 BFG AT's

DougW wrote:
>
> Coasty did pass the time by typing:
> > http://today.reuters.com/investing/f...01_N16147645:1
>
> The National Highway Traffic Safety Administration said the fire risk stemmed from increased transmission operating temperatures
> and the potential purging of transmission fluid into the engine compartment.
>
> Odd.. I've never seen a "purge" valve on a transmission. ;)
>
> Sounds more like one of the transmission cooler hoses is failing
> because they used cheap/poor material.