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kgrant, A carboned up spark arrestor screen -or- the frozen ice blocked breather tube likely caused the excess crankcase pressure that caused the oil burning and crank seal leakage. The breather tube ice-up tells me you only run it for short duty cycle runs. The engine doesn't run long enough to boil/evaporate away the normal cold engine running water condensation.
The way to minimize that icing up is to store the genny in a heated living space. If you drain the carb floatbowl before storage, it does not smell or emit fuel odors. My EF1000iS is in an unheated basement, but when it runs, it runs for at least a half hour. If you must run it for a short time like 10 minutes, for whatever the reasons, let it run at full RPM's with the Eco Idle OFF.
The spark arrestor screen requires regular wire brush (and propane torch) cleaning as the very fine screen openings get carboned up. I leave mine out unless a quiet overnite runtime is needed, but that's rare! The 2 screen spark arrestor assembly diminishes power available for heavy electrical loads.
2009 EF1000iS, 2011 EF2000iS, 1987 Honda EM-3500. (ready for anything!)