Hey Jim,
Your problem is quite common.
The oil tank on an XT/TT is in the frame and above the motor so don’t worry about that. It really needs to be higher to feed a good supply of oil to the engine.
In the clutch cover is a spring loaded ball and rubber seat. It’s there to stop the oil running from the tank into the sump. When the motor starts the oil pressure opens the valve.
The rubber seats do harden and perish. It’s a couple of hours work to change it and the seat and ball cost about $10.00, you’ll also need a clutch cover gasket.
Hope this helps
Brent