A poor ground connection in the sensing leg circuit will result in the gas gauge reading higher than actual level - or in the case of a broken ground wire, the gauge will peg high.
I would first check for proper operation of the dash gauge:
1. Pull the harness connector off the tank select valve body. This will create an open circuit in the gauge's sensing leg (pink lead). Turn the ignition switch to the RUN position and observe the gas gauge - it should peg high.
2. With the harness plug still off the Pollak valve, locate the pin (or socket) on the plug that is connected to the pink wire. Attach one end of a suitable jumper connection to the pink wire's pin and connect the other end to a good clean/rust-free spot on the frame. Now with the ignition switch in the RUN position, the gas gauge should read right down to the "E".
If the gauge reacts as above, you have confirmed proper operation of the gauge, the cluster PC board, the common section of the sensing leg and it's power supply.
So basically, you will have eliminated everything except a switching issue within the tank transfer valve.
The other possibilities are:
1. Two grounded sensing legs - between the transfer valve and tank sender - or
2. You have two failed sending units
Two have both of either those fail is not likely. Here is another more realistic possibility;
GM used the same tank sensing wire harness on dual tank trucks as with single tanks - up to a point.
The common pink wire has to be connected to the tank transfer valve - which is mounted over by the auxiliary tank. The pink wire in the standard harness (which only needed to go to the production tank on the LH side) was not long enough. To gain the additional length - that the pink wire needed in a dual tank setup - the simply tacked on another 4-5 feet.
That splice was made just a little bit forward of the rear wall of the cab - up on the top flange of the LH frame rail. It is not to hard to locate and check for a good connection. It is certainly easier to access than the sender connections.
Here is the wiring diagram for an 86 with dual tanks and a image of that hidden common splice connector:
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