DEFINITION: An occasional drop of lubricant leaking from the splined yoke is normal and requires no attention.

The slip yoke barrel is burred, nicked, corroded, or worn or the welch plug is leaking.

1. Inspect the slip yoke for burrs.

Minor burrs can be removed by careful use of crocus cloth or fine stone honing.

2. If badly burred, corroded or worn, or the welch plug is leaking, replace the yoke. Refer to Universal Joint Replacement .
3. Replace the oil seal. Refer to one of the following:

•	Rear Output Shaft Seal Replacement for the NVG 120-NR9 transfer case

•	Rear Output Shaft Seal Replacement for the NVG 226-NR8 transfer case

•	Propeller Shaft Front Slip Yoke Oil Seal Replacement for the 4L60-E /4L65-E/4L70-E transmissions

There is a faulty transmission or transfer case output shaft oil seal.

Replace the oil seal. Refer to one of the following: