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He could have a leak, but it sounds more like his compressor unloader valves are stuck. All air systems leak. Even our 1 million dollar "wonder" buses leak air (especially our buses since they have over 1/2 mile of air hose in them) . He's system sounds more like the unloaders since the...

These valves are IN the air-compressor.

This is from an excellent site that explains the purpose of the unloader valves and what happens when they don't function properly. You will also see that the correct pressure settings for a governor is to come on at 100 psi and off at 120 psi.

Actually that is perfect. 120 psi is where the pressure is suppose to be. It keeps building air though, which is why it constantly bleeds off. The compressor should not be building any air until it drops to 100 psi.

Like I said earlier check your compressor unloader valves. They are behind the intake filter assembly. They are poppet style valves. You can squirt some brake cleaner into them and use shop air to clean them up. Then use something along the lines of "Tri-Flow" (PTFE lubricant) to lube them...

That what I'm thinking too. Your compressor unloaders are not working properly. More then likely there stuck closed.