CAT E70b – smoke coming from flywheel housing

Digging some stumps the other day I noticed a strong smell of burnt rubber, so I immediately shut down and grabbed the extinguisher to find smoke coming from the flywheel housing placed between the engine and the main hydraulic pump. I let it cool down completely and got less smoke but the same smell as if something rubber is melting inside. I plan to tear into it, just not knowing what to expect. I'll try to post a pic of the hole the smoke is coming from. Thanks Hole is on top dead center, the pic is rotated 90° clockwise