I bought this 2000 Kodiak 4x4 400 as a project. Noticed that the seal on the middle drive is leaking. My question is how does the middle drive get lubricated? Does it use engine oil or does it have a reservoir for itself? I cant seem to find it with google searches

 

Never done one but it will run in engine oil as there is nowhere to fill or drain it. From the parts drawing, it looks like you remove the swinging arm, then the rear UJ spider, remove the nut on the yoke, then the rear bearing/seal housing and change the seal. If the seal goes in from the outside you may get away with prying it out with the housing in place.