It's the chain case, there is a full line on the dipstick, oil in it looks pretty bad after only a few miles of riding. I'd find a small shop where someone can look it over at a resonable cost, a 12 yr old sled is going to need some maintenance regardless
If thats your first sled just be very carefull with that throttle, it will get you in trouble very fast if your an inexperienced rider.
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