On the 87 the expansion tank is located up inside the fender well, on the other side of the fender wall from the battery.
The 3 metal lines on the sending unit are the fuel to engine, the excess fuel return from engine, and the vent line to the expansion tank.
If the fuel is coming from the top of the tank, it might be that the O-ring seal isn't properly installed or the sending unit lock ring isn't tight enough.
I think the old tank we removed from the Formula Fastback is still at Michaels. I still have the old sending unit here if you need to know which metal line is which and there may be some ring seals in the box, too.