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I vote you're combusting some kind of lubricant. ARs like to run wet but I always avoid oil on the bolt piece with the lugs (not sure what that piece is actually called).
 
Looks like cooked up oil to me.

I vote you're combusting some kind of lubricant. ARs like to run wet but I always avoid oil on the bolt piece with the lugs (not sure what that piece is actually called).
Dude, that's pretty much the last place you should avoid to oil...

It's called the barrel extension.
 
Barrel extensions are most of the time made of stainless steel... No rust there.

Did the previous owner shot a lot of laquered ammo in this gun? ;)
 
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