After a few weeks of putting it off (I'm so good at this), I started digging. After about 1.5 feet down I discovered the pipe and the problem. Picture goodness below.
Actually what I found was two nice slices in the pipe. I have no idea how this could have happened, but just went ahead and cut out the broken part. After removing some more dirt - I mean mud - I found another broken spot to the right (closer to my house).
I went to the hardware store and bought a couple of furnco's to match the size of the pipe. I also grabbed about 3' of 2" pvc pipe to use inplace of the broken section.
I measured out the section needing to be replaced and cut my pvc pipe to size. Added the furnco's on each end and left it for a couple of days to make sure it would hold. I ran some extra water into the sump well to keep it pumping to check for leaks.
The above picture was taken right after I installed. The next day the water was gone and the soil was starting to dry even with the extra water I was running through the sump well to test. Mission accomplished!