I just bought a 1989 325i and am starting to fix it up. I noticed it had a small oil leak while running in the garage today. I wiped everything down on the underside of the car then jacked it up while it was running. Here is the camera phone pic I took:

As you can see, it's near the oil filter, but the oil filter itself seems fine. What is that part and how do I fix the leak?

As you can see, it's near the oil filter, but the oil filter itself seems fine. What is that part and how do I fix the leak?
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