That is correct. That is where they belong, and there is no oil return at this location. That is why they are required. They also require acorn nuts and copper washers up top. These four studs were abandoned as oil returns because the new "F" model head castings exposed these four cylinder studs to the atmosphere where they pass through the head. If you do not seal these at the top and bottom then one or more of three things can happen:
>Oil can be pushed up from below and leak out onto the head where these studs are exposed
>The elements (rain, sand, mud, rust) can find their way into the crankcase if you don't seal these entry points down low
>Oil potentially can weep past the threads of a standard head bolt nut from above and leak out onto the head where these studs are exposed to the atmosphere where they pass through the head
Part number six is a fat little o-ring that gets pressed into a conical shape by the shape of the casting at the bottom of the barrels at these four stud locations.