That's just the EGR port, I wouldn't worry about that, plug it up somehow and move forward.
The ideal place to block it is in the exhaust sleeve itself, but that requires a TIG welder and some INCONEL rods.
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1986 GXL ('87 4-port NA - Haltech E8, LS2 Coils. Defined Autoworks Headers, Dual 2.5" Exhaust (Dual Superflow, dBX mufflers)
1991 Coupe (KYB AGX Shocks, Eibach lowering springs, RB exhaust, Stock and Automatic)
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