Submersible well issues, Q's for the experts....

Hello all, i have been visiting this forum for a while and never posted, but now i have a problem that requires me to see what you experts think. I believe that i know the answer but i guess we will just see.
My water pressure has been getting low for a few weeks in the house, but while i was away last weekend the sitter told me they experienced not only low pressure but also air pockets whenever the water is turned on after sitting for a bit. I went downstairs and had a look, the bladder tank has air and no water sloshing, good. I then pulled the cover to the relay and noticed the pump was on constantly and was only building pressure to about 30-32 tops, not enought to shut off. When i trip the relay off the pressure starts dropping to zero, slow and steady. My next step was to remove the well cap. I can hear the pump humming away. Next i went inside and shut the breaker off and ran back out to have another listen in the well. After a few moments i can hear water running clear as day. My thought is i have a break in the down pipe somewhere. Does that sound reasonable? I also thought check valve, but somehow air is getting into the pipe as it is coming out the faucets so i am leaning towards downpipe problems for this reason. I pretty sure i shouldn't hear a thing once the pump breaker is off.
Also, where is the check valve located? Is it usually at the top or bottom of the well pipe? Thanks in advance!

You most likely have a hole in the downpipe. The checkvalve is built into the pump. There may or may not be additional checkvalves installed but they can cause more problems.

Thanks for your input and that was it. The down pipe had a small hole in it just above the pump. We replaced the entire pipe just to be safe. Amazing how a hole the size of a pen tip can cause so much leakage to keep the pump on constantly. My issue now is dirty water, which i'm thinking will clear up as the well settles...