I didn't pay attention to what axle he is working with, but if it is an 05-06 Escalade AXN axle, those do have a tone ring sensor at the very outer end of the axle housing. I posted a picture of it in this thread, when I acquired mine. It is still uninstalled here, as I am dealing with other higher priority issues unfortunately on the 6.0.
REAR END UPGRADES
Any inexpensive ones in your area? I'll probably keep up the search for an 05-06 one anyway, since I believe these were all 3.73 gear ratio, and that matches the gear ratio in my 04 Tahoe Z71 4wd so I won't have to re-gear to match the front diff.
www.tahoeyukonforum.com