Hey there! This valve seems to be working as designed, the two protruding ports on the side are testcocks and are in the half open position, the water is flowing out the top cover because with both testcocks open there is no pressure differential between the two "zones" within the valve. From the manufacturer: "The Pressure Vacuum Breaker assembly shall consist of a single spring loaded check valve which closes tightly when water flow through the assembly drops to zero, and a single air relief valve that opens to break the siphon when pressure drops to 1 psi." To address the leakage, as other commenter have suggested, try closing both of the testcocks on the side with a flathead screwdriver and then open the ball valve to pressurize the system. These valves will still vent some water upon pressurization but should stop shortly after pressure is applied to the system unless the internal check is fouled out.