Seal by shift lever

There is no bushing in the sprocket cover. There are three seals. One in the transmission cover and two in the sprocket cover. One is pressed in from the outside facing out and the other is pressed from the inside facing in. They have to be destroyed to take them out as the the cover is milled to act as a bushing for the lever shaft. The two seals act as support for the shaft. You'll find they come as a set of three in the seal kits. 
Steve

And not very difficuld to remove and press the New ones in

I bought the whole kit on eBay. 
Steve
1973-80 z1 z1r kz900 kz1000 kz 1000 motor engine Oil Seal Kit crankcase gasket
 

I’m thinking I’ll do the same because I’m sure everything needs to be replaced. The bike sat a long time! Thanks all for the input.

Z1E also has them.  Part 200-1032, you'll need 3 of them.  Install them as described in Steve's reply.

29mmgas wrote:

I’m thinking I’ll do the same because I’m sure everything needs to be replaced. The bike sat a long time! Thanks all for the input.

I paid $31.49 with free 3 day shipping. I changed all the seals while I was at it. 
Steve
 

29mmgas wrote:

I’m thinking I’ll do the same because I’m sure everything needs to be replaced. The bike sat a long time! Thanks all for the input.

nice looking bike Jim! When was last time it was on road?

Hey thanks Jim, 1984 was the last license plate. It’s been sitting in a shed, then move to storage and now it’s in my garage it needs a lot of work. It’s coming along. I hope to have the before and after pic not to long from now.

I guess that's a common story - since 1995 or so my Z1A  sat in a shed, then in kind of damp storage, now it's back home being revived

At least 8 of our bikes were dead to the world when we got them. We have one more bike to go through, an 83' Honda CB 1100F. It's been parked for over 20years. It's very satisfying to bring one back from the dead and ride it.