The motor is a 2006 PR 36.
I just went to change the lower unit oil and I had a bunch of plain water come out when I pulled the plugs.
The water was clear like it just came out of the lake. After the water finished draining, oil started to flow out. It was dirty but it had no milkyness to it whatsoever.
Right before I changed the fluid, I ran the motor on the trailer, in gear, for about 5 minutes hoping that it would help heat the oil and make it come out easier.
I am thinking that the seal is out.
Is there only a seal at the bottom or is there one at the top as well?
If there is a top seal, where is it?
Reason for asking is, if I had a seal out, shouldn't I see some evidence of leakage? i.e. oil on the prop shaft or something?

You can't get a good oil reading if you ran the motor in gear prior. However, most find it becomes milky after running it.

I wasnt really trying to get a reading, just get it changed. I thought it might be slightly thinner after running for a few minutes.
I thought if there were water in it, it would be milky. I ran the boat yesterday in the water. I am guessing there is probably no major damage to the gears just wondered if there was more than one seal?

I believe just the seals by the prop. It is actually 3 seals inside the seal nut. As long as there is no shavings you are good.

Thanks for the responses. I am going ro give KP a call tomorrow and talk about it some more.
I just dont understand there not being and oil visibly leaking out

I have never seen them leak out. Normally when gear oil comes out by the clutch is when I change the seals

Change the top seal!

Does you LU have the new grease zirt? Also did you wash the motor recently? Like put a lot of water under the motor around the clutch? There is a vent that can take water if it is not plugged. Ran into a similar problem last season but the oil was milky.

Thanks for all of the replies. I spoke to KP today.
He said most likely the lower seal was out.
Since it showed full oil at the top plug and drained water out of the bottom plug first, he thought it was most likely a pretty slow leak.
I am going to run the boat on Sunday now that I have fresh oil and i will post a report whenbi get done if i dont get a measurable amout of water after a couple hours of water time, Ill assume its pretty slow.