For people that first saw this in the 169 section their car has a pipe over pipe fitting, and you can easily just cut the clamp off, I see this post is now moved to the correct post 2012 section
The original posters problem is a quick job with the correct tools
You can properly still use the stud, the threads are protected from rusting by the nut, even though it's nasty on the nut
Getting this part out
View attachment 446660
Not as easy, and a large percentage of the time unnecessary, this part will be generic and with the sizes a replacement found, I wouldn't bother and just use a nut and bolt
If you are going to drill, by hand, you need a split point drill, slow speed and some lubricant, oil is fine
View attachment 446661
The drill on the left will make drilling by hand much easier
I've seen that video before and he's not wrong but my only concern is how well the internals of a cat may or may not cope with the vibes from a air hammer? Hence why I did it manually and very lightly/few blows,.... I was prepared to quit and try another method, thankfully they fell off within a 4 or 5 taps.