oil leak help

[mnz28]

Hey people,
Im having major problems with my 87 full size blazer 4x4. I have a nice steady drip of oil coming down near the filter area. I thought at first a fitting for the oil cooler was loose. I looked into it somemore and got oil dripped all over me. Above the filter on the block I have a roughly 3/8th inch pipe thats about 3 inches long with a 90 deg fitting on the end. Threaded into it is a sensor of some sort with a wire coming out of it. If I pop the hood it is directly behind the ds exhaust manifold. Well anyway the oil appears to be coming out of this sender. I dont think this has anything to do with the oil pressure gauge as the sender for that is behind the throttle body. What is this "sender" ? Can I just plug it off and be good to go?