SmokeSmeller, I did the same exact thing except I finished it off with some high temp caulk. I imagine the grease from the lid just gets soaked up by your gasket where mine pools up and drips onto the barrel because of the caulk. Maybe the answer is to keep it simpler and forget the caulk.
Does your flange fit tight inside the drum with the gasket? Mine did not and that is why I added the caulk to fill in any gaps.
Greased Lightning works pretty well.
White Sox UDS, Black UDS, Weber OTG and Performer, Orange Thermapen