D27 axle oil leak from lockout hubs

My sons '69 CJ5 with a D27 front axle is leaking gear lube out of the locking hub. Took the unit apart down to removing the axle. Needless to say the wheel bearings were being bathed in gear lube. We did not find an oil seal on the axle to keep the oil in the knuckle from leaking thru the axle and the spindle bushing. The spindle inner bushing has wear and fits loosely. Where should the oil seal be located? No leaks from the knuckle or oil into the brakes. Drivers side is OK. Some parts books show an oil seal near the spindle bushing and other books show an inner oil seal located in the differential housing. Any help would be appreciated.

 

There's a seal in the pumpkin for each side. If this fails, it will leak at the ends. Ask me how I know.

 

Can the seal in the pumpkin be replaced by removing the cover on the differential with the axle removed? Also, since the knuckle is supposed to have 140 wt oil in it, what keeps that oil from leaking around the outer axle, inside the spindle into the wheel bearings?

 

No, you must remove the carrier to get the old seal out and the new ones in. So long as you put the side shims back in the right place you do not need to do anything but put you carrier clamps back in the right side and right direction and retorque your carrier clamps.
The knuckles are not really filled full enough for this, plus there is a bushing in there that cuts some of the clearance down that would allow this.

 

Is there a groove worn in the axle shaft where the pumpkin seal looks like it should seat? I have found that to be common in D27 when pinion bearings get sloppy. I put 2 seals in each side of the carrier. I have not greased a brake with gear oil since that modification

 

The axle looks smooth, no grooves. How much play should there be between the axle and bushing in the spindle? It probably needs replacement too.

 

I do not think there should be much slop at all. Replacement = new spindle. I would check you vent on the top of the carrier. I think it is unusual for the carrier to leak oil into the axle tubes if the seals are good and there is no wear in the sealing surface. AM

 

We are getting new seals, bushings, gaskets, and a bucket of ambition. I will also be installing the 11" brakes we have been sitting on. Thanks for the input.

 

Finished this project. The passenger side axle seal looked like the original leather seal. The previous owner had replaced the drivers side seal and not the passenger side. When I looked thru the box of spare parts we got with the Jeep, I found a new seal. At that point I had another name for him besides previous owner! Since, I had to dismantle the drivers side knuckle, I ended up replacing the kingpin bearings and races, the spindle, axle U-joint, and the knuckle seals. Installed the 1976 11" brakes with finned drums, new brake hardware, new wheel cylinders, flex hoses and found out that the 15 x 8 riveted wheels did not fit. Got some newer Jeep welded wheels and this project is done. It does seem to stop better than the 10" brakes.