I have my 4WD SL series 2 torn down fixing a leak in frontend.I am replacing both oil seals one in front end housing where shaft comes out to wheel.Other seal in swivel housing.I took seal out in swivel and looked at the brass bushing and it was either split long ways or it is cracked.I believe it was split when it was new and installed in housing because the split is straight.i still am puzzled on why both of these seals were leaking because the shaft or brass bushings are not worn.the backhoe only has 1,800 hrs. on it.
They develop leaks there all the time. Dirt or even a piece of string or wire gets tied up in there and damages them or they just get old and cracked. Not abnormal. I believe some of them brass bushings were split. Same goes for a wrist pin bushing in a connecting rod. They tighten up when you install them. If it is tight in the housing and the shaft is tight it will be ok.