Perfect! I'll do this today. Man, this is gonna be messy. I hate the smell of TC fluid!The screw hole is just for retaining the brake drum The oil just happens to be there because it's leaking from the center. There is an oil seal behind the flange in the case of the transfer case. The big nut that you see in front of you has a thick washer and a felt seal that keeps oil from creeping up the splines behind the nut. Either the flange oil seal or the felt seal is bad. Easy to replace if you have an impact gun.
When I do this job I rightstuff glue the oil seal in place and rub the felt seal with EP Grease when installing. Buy a genuine/oem/corteco seal for the flange , cheap ones suck.