Yes, it could be leaking from the governor pivot arm bushing. If your engine is the five HP flattie, 130202 model for example, you might try looking in the many on line parts breakdown manuals for it.
I used the 130202 model and came up with governor bushing part number 690508. I do not know the "official" method of removing the bushing, but I'd use a drill to get it thin enough to easily pop out of the bore without elongating the bore. Depending on how the clearance was for the new bushing, I'd press it in cold against a warmed block if tight, and if loose, would install it with my new friend, Loctite 620 green which would make it there forever. My two cent's worth on a slow news day.
Of course you could use a felt washer on it to suck up slack and mitigate some of the seepage like that. Others might champion the use of JB weld.