Where do I Drill My Bung-Hole?

I wanna run a 1/4" Fuel-Return Line along-side the 5/16" line for Fuel-Boiling reasons...
in my '65 Barracuda with a 273 2bbl manual pump.
The Pickup in the Tank doesn't have the extra return nipple So,
1) Will I have to Drill into the Tank for the Return?
2) Is the Location in this Picture a good place to do that?
3) Does the Return drip from the top? or Must it be Submerged in the Fuel on the inside?

tank.jpg