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The catch tank does simply this. The part of emissions systems require crank-case gasses to escape through the intake system to make sure any pollutants will be fed back through the engine, and burned up so that it can be cleaned before it shoots out of your muffler. In practice, and in normal driving, by design, this is fine, and works well as designed.
However, in the case of sustained high rpm use on the raceway, this gas flow in the EGR and CVS is so much, and oils being shaken around with lateral and longitudinal forces, that a lot of engine oils can blow through, making the intake plenum a bit greasy or even oily.
The catch tank simply filters and separates the oil when this happens, so that the EGR/PCV gasses returning to the intake can be free of heavy oils.
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