If the steering is working fine, otherwise, I don't think you should have to replace the rack. It's possible the leak is higher up and just happens to be running down to that point and dripping off the nut. I don't know much about this, but what I would do is jack up the front, go under and clean everything off really well, make sure you have lots of light so you can see everything up in there. Start engine, crank the wheel back and forth a bit, go under and see if the leak is coming from higher up. If you confirm that it's coming from the nut then put a pan underneath and pull the nut. Hopefully, if there's a bad seal there, you should be able to see it.
Good luck to you.
SOURCE: pinion seal leaking
check your rear diff vent if pluged clean it out and clean up the pinion seal.sometimes if the leak is caused by pluged vent and has not been leaking long once vent is clean sometimes the leak will stop.there is not a specific torque amount because it is rotational torque(how hard to turn pinion).there is a crush sleve on the pinion and if torqued too tight or too loose brg preload will be wrong and brg damage could result.mark and remove drive shaft.remove rear wheels,brakes,axles.so when turning pinion you dont have any drag from brakes or axles.mark the position of the yoke on the pinion.remove yoke,replace seal,reinstall yoke be sure to replace pinion nut.tighten nut until it takes the exact same amount of force to turn pinion as before taking original pinion nut off.hope this helps.
SOURCE: 1999 dakota rack and pinion leak
You can change the seal, but the new one will most likely leak soon after, the seal starts leaking because of problems in the rack from wear, I would try it but if it leaks soon after replace the rack, they are cheap rebuilt.
SOURCE: rack and pinion leak
It needs replaced a rebuilt unit cost $350.00 and you need the tools to remove the tie rod ends and you have to unhook the steering wheel, if you have a hoist it's not to bad but a do it yourselfer it's a pretty big job, the fluid is that color because it's sucking air into the fluid because of the leak and the shaking is caused by one side not holding hydrolic pressure because of the leak and wore out inner tierod ends. If you do do it you need a whole lot more information and much more instructions to do it, afterwords it will have to be alingned, having done it before and having the proper air tools I can do one in three hours. You might take a week but it would be a learning experince.
SOURCE: Replaced rear axle pinion bearing and seal, need
There is no torque specs,this nut has to be tightened back like it was ,the best thing to do,was,to late now,is to use a torque wrench to remove the nut,and remember the torque,and when replacing it,torque it back to that spec,the reason being,there is a crush sleeve between the front pion bearing ,and the rear pinion bearing,and it has to be crushed to a certain amount,to aquire deepness into the ring gear,anyway just give it about 25 lbs torque,any more the crush sleeve will crush even more and the deepness of the pinion will be too much.
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