(1)A mysterious, orange, sticky gel, found on the beaches of Kivalina, a village situated on the Alaskan coast between Kotzebue and Point Hope, was recently the source of much interest. Many people thought that the sticky gel was some strange compound that had spread as a result of a chemical reaction. Others had more farfetched ideas about the substance’s origins ranging from aliens to volcanic remains (2)Scientists at an Alaskan laboratory have been busy analyzing the unknown substance. They have concluded that it is a formation of microscopic eggs. One of the scientists said that there are traces of oil in the eggs, and this is what is causing the strange, orange color. (3)The scientists have discovered that the eggs belong to a small invertebrate - a spineless animal, but they have not been able to identify the exact species.
The word it in Paragraph (2) refers to