gear rod seal at h2o pump

'98- 150HP EVINRUDE. I notice a little gear oil on the gear rod on the top gear case cover when I replaced the waterpump kit.
Is that part of the gear case sealed by the 1" round rubber disc that slides over the gear rod or is there another seal at the top of the top cover of the gear case that goes bad and needs replacing?
(Advise needed)......, don't want water in the gears, knothing about seal in manual.

there is a o ring in the gear shift rod housing and probably needs to be replaced

I think the seepage I saw was the gasket seal I used when I installed the waterpump housing. There no longer is a seal in the top of the new water pump cover around the drive shaft there is a gap between the housing and drive shaft per latest design. The seepage should go away once I run on the lake.