Oil leak at neutral switch

Nate7504

XS400 Enthusiast
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My neutral light was acting goofy so I pulled the cover off and low and behold oil was commin from behind the white plate with three screws, so I pulled that off and there was oil behind the switch? I will replace the o ring on the switch, just wondered if oil should be behind it.
 
Yes oil should be there, that's the ass end of the shift drum.

Make sure the plastic isn't cracked. People over tourqe the screws
 
Ok, because after I cleaned out the oil behind there my neutral light worked as it should, that's why I wondered.
 
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