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.

1. Inspect the slip yoke for burrs.

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

2. If the is badly burred, corroded or worn, replace the yoke. Refer to One-Piece Propeller Shaft Replacement or Two-Piece Propeller Shaft Replacement .
3. Replace the oil seal. Refer to one of the following:

•	Rear Output Shaft Seal Replacement in Transfer Case - NVG 149-NP

•	Rear Output Shaft Seal Replacement in Transfer Case - NVG 236/246-NP8

•	Rear Output Shaft Seal Replacement in Transfer Case - NVG 261-NP2

•	Rear Output Shaft Seal Replacement in Transfer Case - NVG 263-NP1

•	Transmission Housing Oil Seal Replacement in Manual Transmission - NV 3500

•	Transmission Housing Oil Seal Replacement in Manual Transmission - NV 4500

•	Transmission Housing Oil Seal Replacement in Manual Transmission - ZF S6-650

•	Extension Housing Rear Oil Seal in Automatic Transmission - 4L60-E

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

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