There's a passage in the rear of the case to allow fluid to get to the speedo gear and a drainback passsage. I think most of the fluid comes back up the drainback hole when on a steep incline. There's no seal on the output shaft, it rides in a bushing and the only seal is in the tailshaft housing in 2wd config. If I were a real slick machinist, I'd make a ring to go in the back on the trans housing that would accept a seal on the output shaft. Then I'd sell 'em for a lot of money because everybody that runs a GM automatic has that problem.