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A Buchholz relay is located in an inclined pipe between a tranformer's tank and its expansion tank. It has two purposes: (1) to set off an alarm in the event of a loss of oil or the formation of an excessive amount of gas bubbles (likely caused by minor arcing between the turns of a winding), and (2) to disconnect the transformer in the event of a continued loss of oil, or a catastrophic fault within the transformer.

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