I tried getting plug loose but its flush with the housing so someone really tightened it and i dont wanna break the housing any more than it is.The dipstick only goes in the oil about an inch, the water is at the very bottom, there is a drain to empty it out open it till oil flows out.
Hydraulic fluid is oil , oil is used because it does not compress, as the moisture level increases the the efficiency of the hydraulic is reduced due to the fact that water compresses. As the water level increases hydraulics work less efficiently . I have a 60 hp that requires a change out (16 gal ) every few years because of water absorption. Front end loader and power steering just don't work .Could this be why the power steering barely worked ?