Ok, so when I drained the gear lube, a couple tablespoons of water came out with the grease. The water was clear, the lube just dark blackish. So am I to suspect the water was condesation from sitting in the shop for a month or two? Last time I had water in my tailshaft (on my sailboat)the lube came out looking like coffee with cream. That was caused by a flaw in the casting, and running it for a season.
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