Mike, It most likely is a failed seal, although it could be your vent is blocked which can over-pressurize the axle and force lube out the seals. Either way if it's leaking now then it needs to be replaced. Take a little time and read through Section 4 of the 1955 2nd Series Truck Shop Manual (free access to everyone). I believe the info you need to start with is on Pg 4-5. You will have too remove the axle to replace the seal. BTW - Since you are having to pull the axle anyways, now is a good time to check the bearings and condition of the differential since you must open that up to remove the axles. wink


~ Dan
1951 Chevy 3 window 3100
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"My Grandpa Carl's Truck and How it Became Mine"
1966 Chevelle (Wife's Hot Rod) | 2013 Chevy Silverado (Current daily driver)
US Army MSG Retired (1977-1998) | Com Fac Maint Lead Tech Retired (1998-2021)