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 for the NVG 149-NP transfer case.

•	Rear Output Shaft Seal Replacement for the NVG 236/246-NP8 transfer case.

•	Rear Output Shaft Seal Replacement for the NVG 261-NP2 transfer case.

•	Rear Output Shaft Seal Replacement for the NVG 263-NP1 transfer case.

•	Propeller Shaft Front Slip Yoke Oil Seal Replacement for the 4L60-E transmission.

•	Propeller Shaft Front Slip Yoke Oil Seal Replacement for the 4L80-E transmission.

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

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