Everything looked fine. The sealing lip was tore away from the seal. I'm thinking these seals are not designed for extreme cold starts. I live in an Alaska bush village and my Kubota is my only transportation in the winter. I avoid starting it at temps lower than 30 below. I have two pan heaters and a block heater, but the oil in the timing case may be too stiff at these temps. These machines are used extensively on the North Slope and work well at temps pushing 60 below, but are kept in heated garages. I'm using full synthetic Mobile 1. This is the only oil I've found that will still pour at 50 below. I'm building a "buggy shack" for it this summer and I will be able to warm it before starting. A seal designed for cold temps would be the "fix", but it seems Kubota should have already done that.