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I've tried twisting two screw drivers into the slot but it doesn't seem to wanna rise up when pulling.
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I've seen distributors with "long drive shafts" (i.e. extend from the distributor DOWN into the block and to the oil pump drive gear) made in one piece. It seemingly was a common JC Whitney thing back in the day "to reduce free play" (i.e. instead of leather pieces.)
I can't say I've ever seen a long shaft extending "up."
More than likely you got water somehow into the oil pump drive gear/housing. The "collar" at the top of the housing doubles as the "locator" for the oil pump drive gear tang. I'm imagining the two are rusted together.
Rust of course occupies 1-1/2 times the volume of the carbon steel it's formed of.
Pix below
Note the "pin" holding the upper collar. Perhaps you can file/grind off the upset head and use a pin-punch to drive it through - releasing the collar to go up? Meh. Spring still in way.
Joe K