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governor

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About the only way to stop that leak is to replace both the governor shaft and that nut, which unfortunately requires complete disassembly of the engine.
 
I’ve got several. PM if intereste.
 

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Cub Cadet's online parts lookup will tell you the part numbers, which you can then Google and find from a variety of sources. If you are going to be into it this far, I would replace the governor gear as well.

I would not waste time or money on a used cross shaft and nut...the tab eventually fatigues and breaks off the cross shaft, and even a slight amount of wear on the nut and shaft cause an oil leak. Given the level of disassembly required to replace these parts, get new so you don't have to do it again for a long time.
 
An oil leak at the governor shaft/bushing can also be caused by a non-functioning crankcase breather. Be sure breather reed valves are seating and working properly and that filter media is clean and not causing a restriction.
 
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