Update:
New parts showed up today. Put them on, installed new filter, and everything looks to be working perfectly now. Filling tanks, but air sample media won't get here until next week, then I'll send the air sample in for analysis. When I get the results I'll post them for reference. I would have liked Nuvair to make more of an effort to compensate me for the contaminated tanks than just sending correct parts and a couple filters, but it is what it is and I'm not going to inconvenience myself a ton more just to push back regarding this one issue with the compressor so long as the air test results come back satisfactory.
Those saying the mfg should pay for your tank cleaning are nuts. I ma not aware of any company that compensates people for the auxiliary damage from bad parts, it just doesn't happen. I understand the argument but it is too much liability for companies to support things beyond their own stuff......
It is commendable to work with the supplier instead of demanding it be returned, you should do that to some extent since you would expect they know their product and it could be a benign assembly issue fixed with parts. Keep in mind the limitation on disputing the charge on your CC. This may be your last line of defense and you should not let your cooperation with the distributor go beyond this point since you will be totally at their mercy after CC protections run out. My card is two months.
@iain/hsm Has some valid points but some totally invalid points.
Lose bolts don't mean rework was done, this is a budget compressor assembled during a labor shortage, what can you expect. Oil in there doesn't mean that either. I receive equipment all the time. equipment is almost always run at the factory so it gets filled and emptied during test. Every so often equipment comes in and has oil, it is just someone forgetting to empty it after test.... (labor shortage, rember? )
Recently, i have seen 5, 75HP motors from a top tier mfg, burn up in the first week of operation because someone on their line did a **** job assembling. Given the current situation it is pretty safe to assume it was a new guy hired because he showed up.
What I can agree on is that your comp probably is flawed, and oil in the separator is a huge sign of a major flaw, not O-rings or some filter cap issue.
There is a reason Bauer gets the money they do for equipment, this thing just doesn't happen with them because they spend more on production. Nothing wrong with the bargain guys stuff, especially for non professional use, but realize what you are dealing with and react appropriately. If they offer an exchange, I would ask that they refund the first and let you order another so you have a fresh charge on your card so the protection clock starts over. My guess is that they will oblige
Just my opinion, Good Luck.