Transfer Csee Leaking?

I'm getting small drips of Auto-Transmission fluid on the garage floor? You can see the drops on the bottom of the transfer case. I put my finger below the fill plug and it had some fluid below it. I checked it and it was tight. When I pulled the plug a bunch of oil came out? I stopped by my mechanic today and he said the fluid could be coming back from the transmission. Bad seals or worn shaft? The transmission fluid was on the minimum mark or a little below. Earlier this year we changed the fluid a put in new reline oil. Worn shaft or seals between the transfer case and transmission?

Output shaft seal on the SYE tend to leak.

The transmission level was down to minimum or below? Could it leak back to over fill the transfer case?

Sahara707 said:

The transmission level was down to minimum or below? Could it leak back to over fill the transfer case?

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No.,, unless I'm forgetting about something. Check the torque on the yoke