I was there when it happened and I seem to recall Kenny later saying that the car did actually have oil in it, the gauge was defective. But I could be mixing it up with another incident. Bill might remember???
The award you are referring to was "The Golden Anvil" and I do remember Lee getting it on one occasion, But I don't think this was it.
Basically every week it was awarded to the Top Fuel team that made the biggest bonehead mistake the previous week. It turned into a pretty big event for a while. When it was presentation time, work would cease and about half the Pro pits would parade to the "Winner's" pit for the ceremony.
Good Times,
Alan