hard to tell, but does the chip undermine the lower edge of the o-ring? Or is it just a tangential "wedge" off the shoulder, leaving the o-ring in full contact with the base and wall of the nozzle? If the o-ring competence isn't impacted, I would wager it's safe to fly...unless it's a crazy long-burn or Vmax. That said, I'm just a guy on the internet, so...