>>1056694It's a copy of the Peterson design. The one hole that goes straight down into wood is a "well" or sump that collects moisture, while the other one is the actual draw hole.
The way the pipe works is the tapered mouthpiece seals the air passageway tightly, and the draw hole is located above the end of the mouthpiece. When you puff, the smoke is light enough to make it around the curved air path, but moisture is too heavy, so it collects on the mouthpiece and drips into the well.
You'll want to clean both holes completely since they can get NASTY.
When I restored my old Pete a few threads back, the actual cleaning of the system drillings in the pipe took the longest because tar gets deposited EVERYWHERE-the outside of the mouthpiece, inside the mouthpiece, draw hole, well, and inside the stem.
Once it's clean it's not hard to keep clean, but getting it there the first time after it's been neglected is not fun.