[Lime98]

I took the cover off of the timing belt, and saw some oil residue inside, along with a crack near the base of the timing belt (the first picture is for refrence, the second has the crack). Is this serious?

 

[Timberwolf99]

That doesn't seem to be the source of the leak there's no oil around it, I would be looking more at the seal which has a bit on the outside in the second picture.

 

[miker104]

Most likely the Cam seal (use Subaru ones). I believe the 'Crack" you see may be a joint in the head.

 

[Lime98]

Thanks. Is that a fairly simple job, and do I need to drain the oil first?

 

[Glennda5id]

Remove timing belt. Lock CAM and remove bolt and sprocket. Replace seal. Recommended to use a good seal puller tool. That seal needs to be seated at or close to the surface. If it is pushed in too far it will block an oil passage.