Can't really tell from the pics, but it looks like it's the unloader valve. It bleeds off air in the pipe from the compressor to the tank when the compressor shuts down so the compressor doesn't start under load when it re-starts. There should be a check valve at the tank to prevent air flowing out towards the compressor and that's what is probably leaking.
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Today's Featured Article - Engine Valves - Some Helpful Information - by Staff. Intake - On the intake stroke the piston moves doward, sucking in carburized fuel through the open intake valve. Exhaust valve is closed. Compression - With both the intake and exhaust valves closed, the pistons upward stroke compresses or squeezes the fuel into the combustion chamber. Firing - Ignited by the spark, the compressed fuel explodes and forces the piston downward on its power stroke. Intake and exhaust valves are closed. Exhaust valves and seats are exp
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