Holty, water will not compress. When pump switches on, and it starts pulling water, if there indeed is a dip in water level (yet to be verifyed by OP as described in my earlier post), can you suggest what component is acting as expansion chamber that is allowing water level to drop in the combined feed and vent to level that allows air to be picked up by the pump? I can envisage slight dip in water level when pump kicks in but a fall in water level to allow air ingress is difficult to picture.
Do not understand what you mean by cold feed being too near the water level. The tee that commons vent and feed is approximately 20 inches below the water level. Checking the gate valve (I would strongly recomend it be removed) is a valid point. If it were closed or blocked, water level in the combined feed and vent could well be below the tee pump is connected to.
Do not understand what you mean by cold feed being too near the water level. The tee that commons vent and feed is approximately 20 inches below the water level. Checking the gate valve (I would strongly recomend it be removed) is a valid point. If it were closed or blocked, water level in the combined feed and vent could well be below the tee pump is connected to.