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Hi Hank, my name is Jason.
That 2nd hole that you are feeling is called an idle relief hole. The outboards exhaust system runs through the middle section, and then down and out of the lower unit, through the propeller. When the outboard is in the water, this entire cavity is flooded with water. This water creates back pressure on the exhaust, which makes the engine have to work harder to obtain a proper idle. Because of that, the engineers "add a hole" in the exhaust system above the water line. This is the idle relief hole. When the engine runs, 99% of all cooling water comes out of the exhaust system. The idle relief hole is part of that exhaust system, so it is normal to see it spit a little bit of water here and there. Does that all make sense to you?