The shop stated that I needed the oil filter gasket replace due to leaking oil. However, I see oil leaking around the value cover gasket along near the spark plugs. When I go up a steep hill, the oil drips and smokes up some.

Would it be obvious to see oil filter gasket leak? In other words, could the Valve cover gasket leak be the cause?

thanks

 

Your car may have both valve cover gasket leak as well as oil filter housing gasket leak.
Use brake parts cleaner/degreaser and cleanup the entire area and keep checking after few days of driving; you will be able to trace where the oil is leaking from.

 

I'm going to have to try this and see what happens. I was told I have an oil filter houseing leak today.

 

I would think they are both leaking.

 

If you've never replaced either, I can just about guarantee both are leaking. Both are typical sources of oil leaks for the M54 motor .