Replying not as a frame expert, but I did work as a mechanic for a while and was often customers' first line of inquiry about frame issues. Take my advice with a grain of salt. The only authoritative source of information on this would be a framebuilder who has been able to inspect the frame in person.
All that being said:
-I would agree that that looks like a cracked seat lug. If my understanding of frame construction is correct, that also means the top of the seat tube is cracked, since it extends through the seat lug and is cut off even with the top of the lug.
-A crack there would be a big deal in that it would eventually cause the frame to no longer be able to clamp the seatpost. The tension of tightening the seatpost binder bolt would tend to expand the crack, and eventually the seatpost would start to slip. Riding it in this condition would probably accelerate the process.
-I'll let you evaluate what is an acceptable amount of danger for yourself, given the failure mode I've described above.
-I would imagine that something like this could be repaired by a skilled framebuilder, but the questions would be whether you could find one that was willing to take on the work, and, depending on what they charged, whether the repair would make sense financially. It's a tricky repair being at the seat cluster joint, where four tubes come together, rather that at a joint with only two tubes, or better yet in the middle of a single tube. Given that the crack is also through the seat tube, a repair might necessitate replacing that tube as well, although a framebuilder might be able to cut it off somewhere in the middle of the tube and splice in a new section to run through the seat lug. I don't know where you're located, but as always, finding a local builder who could look at it would be ideal.
Good luck!
-Jeremy Till (former orange QB owner myself)
Sacramento, CA