Transfer Case Output Shaft Bearing Snap Ring, 261XHD / 263XHD.
This snap ring is the one that must be released before separating the case halves.
For 2001, 2002, 2003, 2004, 2005, 2006, 2007 GM 6.6L Duramax LB7 LLY LBZ
This snap ring is the one that must be released before separating the case halves during disassemble. It locates the rear mainshaft support bearing in the rear housing.