The first thing to do is clean the crankcase ventilation system. That may not turn out to be your problem, but you don't want to pursue other diagnostics until you are sure that the crankcase ventilation system is clear.
I am not familiar with the 316 so I cannot tell you how much work it is to get the plumbing off to clean it. I recently did my '04 325 and it was a real PITA. I have done clutch jobs that were easier than that.
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