Tony You can use a small chisle and hammer to cut it out but they are a real bi%&@ to do while the case to still togeather, for 20.00 bucks you can get both front and rear oil seals and the gaskets, Just take off the front of the transfer case slide your shifters in gear and it all will slide off the front of the case..Then you have access to the rear of the oil seal 1 hour and a six pack later its done,you can even leave the transfer case in the jeep just undo the snubber mount and the six bolts and pull the shift pins.
Jason
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42 Slat grill
43 Ford gpw
44 C15A Wire 5
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