It is the oil seal that seals the clutch spindle/gear that comes out of the top of the cover that the arm/cable attaches to
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1980 GS1000G Clutch Cover Oil Seal leaking
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I attempted to tap a small screw into the seal and pull it out. Seal came apart so to speak and I ended up prying the rest up and out with a small screwdriver being careful not to damage the seal mating surfaces or shaft. Wasn't pretty but mission complete. Mine was 40 years old and dry rotten.
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I just ordered a double lip seal for $7.00 on Ebay. Since I wanted to polish the cover I used a drift to push the seal/bearing and shaft all at once. Did a good cleaning on everything. Polished the cover.Installed the original bearing and now waiting on the seal. You could just tap on the shaft to remove the seal and then push the bearing back down until you get the seal. Seat the bearing until you have just enough free play on the shaft so the shaft does not bind .
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