Thanks for your replies and sorry for not making myself clear. It is actually coolant that is leaking from the seal, not oil. I am not certain of what the gasket is actually called, but they described it to me as the lower timing belt cover gasket that the COOLANT is leaking from. The mechanic worked at Toyota in his earlier days and right after discovering where the coolant leak was he checked the oil and was not surprised to see that coolant had mixed with the oil.
To help verify that it is not the HG (which the mechanic said it was not), my buddy is coming over later today with his compression tester.
Again sorry for the confusion and I will have more information to post later today.
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