holy rusted oilpan batman... I have never seen an oilpan on a contour that rusted... I would say it has to be the pan itself or the gasket between the pan and the engine. Its not HORRIBLE, but I would say replace it ASAP.
98 Corolla LE 1.8L DOHC 1ZZFE
TEIN H.Tech Springs
Tokico HP series Struts
Short ram air intake
Tsudo Axel Back Exhaust
... if a jelly fish stung me.. would you pee on the wound?