The hose from the bottom is the drain back into the oil pan. The hose goes from the bottom of the canister to a tapped hole about midway and low on the engine block left side. The side hole near the top is the pressure side and the line runs down to where your oil gauge line comes off, about 3/4 of the way to the rear of the block. Most filters I have seen also have a drain plug near the bottom if the canister but off to the side a little.

Chuck