I see oil leaking from the bottom near the oil pan and oil pressure gauge goes up to 60 psi when pressing on gas petal. Any ideas?

Did you verify oil pressure with an oil pressure gauge besides the one on the instrument cluster?

near the top of the engine is the sensor that reads your oil pressure, it is probably corrupt. I bought one for $10usd at Autozone...

You need to have the oil pressure checked with a manual oil pressure gauge you may have a bad sending unit. If the you oil pressure is the same with the manual gauge then you have a oil pressure problem.

What you need to do is have your oil pressure check with a oil pressure tester.The way it is done is you need to remove the oil sending unit and install the pressure gauge.Start the motor and make sure it is not leaking where the gauge is connected.Let it run til it warms up and check the pressure on the gauge.The 3.1 should be 15 psi @1100 rpm and the 3.8 should be 60 psi @ 1850 rpm.If not then your bearings and possibly the oil pump are worn or the screen on the oil pump could be clogged.Hoope this helps.Good luck.

The 4.3 engine should have 20 to 30 psi at idle cold and around 50 to 60 psi running down the road. Has this engine had regular oil changes? If not the problem could be sludge build up. The oil pressure sending unit could be the problem. If in question about the sending unit install a mechanical gauge and watch the pressure.

The first stop is to measure the pressure with an external gauge. if the readings are the same, surgery is needed, I would look at the oil pressure relief valve for foreign particles.

It takes resistance to make pressure, and your decsription does not sound good. If the pressure is actually dropping, and you find no issues with the oil pump and pick up, you need to measure bearing clearances... Essentially, everywhere oil is pumped needs to be inspected...

When the engine is idling, the oil pressure is reduced. At fast idle (such as highway speed) it in increases. This is considered normal. If it goes higher than 80 or lower than 40...have it checked out.

i have to be honest, it sounds like a cheap oil filter.

That's not oil level you see on the gauge -- that is oil pressure in pounds per square inch (PSI). It is normal for the pressure to fluctuate when the engine RPM goes down. If it stays on 60 PSI on the road, you are very lucky -- that is excellent oil pressure!

I have a 1999 dodge ram with a 5.9liter. Come to a stop and bam no pressure. Replaced sending unit twice. First after market, then mopar. Problem is still there. Replaced pump. Problem was still there. So I talked to tons of dodge mechanics, and this is the real problem. Who ever said that these engines are none for sludge is just reall really stupid. BOTTOM LINE ON THAT FACT. Sludge comes from neglect...
Dodges oil pump makes 8-10 Psi at idle. Always mechanically test that no MATTER what. But the sending unit needs 12-14 psi to read it. So what happens is the engine warms up, and the oil thins. Then you come to a stop, and rpms are low, and your not producing enough psi for the sending unit to read it. So your truck is fine. But if the chime is getting to you. Install a high volume pump. I returned the stock one, and got the high volume pump. I will bet if you change your oil every 3,000 miles you will not see sludge at all. If your dodge has high miles replace valve cover gaskets, becauce the high volume pump may cause the gaskets to leak. Whoever said ther none for sludge just has no love for a dodge, or is a moron mechanic that is stuck in his ways. High volume pump is the fix $85.00 plus pan gasket. If you have a 4x4 you can do it yourself. Drop the starter. Remove torque converter cover. With a 13mm socket with a variety of extentions, and removing a dozen bolts. Do it yourselfer will complete it in 4 hours....