Transfer case leak
There is a O-Ring Seal and Seal Retainer that hold the seal in place. You have to remove the selector shaft linkage to just the round input shaft. Then pry off the Retainer and remove the old O-Ring and replace. I would advise you to check the level because you might be overfilled.
Now I'm not sure on your transfer case because you didn't include your basic information, however I based it on your name and percent of motors out there. So that being said here is a 1998 Durango with a 5.2L motor so this is a NV231 Transfer Case:
Now I'm not sure on your transfer case because you didn't include your basic information, however I based it on your name and percent of motors out there. So that being said here is a 1998 Durango with a 5.2L motor so this is a NV231 Transfer Case:







