That's the carb combination overflow/drain hose. Overflow happens when the float valve sticks, allowing an uninterrupted flow of gas into the upper chamber of the carb. Often, a stuck float can be fixed by tapping on the bottom of the carb with a screwdriver handle. If the carb drain screw is leaking, fuel will drip from the nipple under the carb. To see which it is, disconnect the hose from the nipple. If the nipple leaks, tighten the screw or replace the O-ring on the screw. If the disconnected hose still leaks, it's coming out of the overflow, and likely the float valve is stuck. If tapping on the bowl doesn't correct an overflow, you'll need to remove the carb and fix the float valve problem.

If it's been overflowing for a while, gas can make its way past the pistons and into the oil. Check the oil level before starting the engine. If it's high, or the oil smells strongly of gas, drain the crankcase and replace with fresh oil. It's good to develop the habit of turning the petcock to the off position when parking the bike. It will prevent a stuck float valve from causing an overflow.

The end of the pictured hose should be placed back with the bundle of hoses behind the right rear of the engine. You don't want gas dripping on a hot engine!

 

Thanks a bunch! So just place em where the puke valve goes? I was worried I missed a hose lol, after putting the new carb she started like a dream!

 

Yes, the end of that hose goes next to the puke tube and other hoses. Did you find the source of the gas drip?

 

Yes! The flathead screw at the bottom of the carb (you can see it in the picture) was very loose so I tightened it, and it stopped leaking, is there any purpose for that particular screw to do that? Lol

 

Yes! That screw allows the carb to be drained when stored for long periods. If gas is left in the carb, it turns into varnish over time, and the carb won't function well, if at all, when the bike is taken out of storage. If everyone drained their carbs before storage, this forum would have a lot less questions as many threads are carb related, and it's usually due to a dirty carb.