Surly can be fixed, don't let the carbon weave thats showing get moisture in it.
Take it to a carbon repair shop and have it fixed in california you have a few options around.
http://www.carbonframerepair.com
http://spydercomposites.com
And the ones mentioned above so you have choices.

The least expensive repair I have heard about, or seen, through Calfee was $400 plus shipping and insurance both ways. Last bike we sent in went over $600 by the time it was back with matched paint. To be fair, it looked absolutely spectacular. Personally, I would look at a new (to you) used frame in good shape, sell that to someone willing to deal with it and call it a lesson learned...this is, of course, dependent on what level of frame that one is. I would not ride it as is.

Not sure why every person who rides a carbon frame does not go out and get a chaincatcher the day they get the frame and before they go on their first ride. It is cheap insurance against stuff like that happening, and it can happen to any geared drivetrain.

Mine came with one :)

First, I am sorry about the "ouchie" to your bike. Is that what happened to Schleck when Contador passed him?

Second, after looking at your pictures, I ordered 2 K-Edge chain catchers.

Third, you may have already answered this, but how how do you gomuphill and not downhill. Inside joke?

Good luck man!

How does a chain catcher work? Is this something I should pub on all of my bikes, or is it limited to carbon frames?

+1 ^ This

Don't disassemble your entire bike, unless they require it!

If you are really concerned about money I do believe you can do all this in the comfort of your house or garage. Disassembling to the point of just a frame will require a fair amount of tools, more to reassemble then disassemble. But it is not that hard. Epoxys and Resins should do the trick although it is messy.

If it were my bike I would just keep riding it though.

It looks ugly but carbon is pretty resilient.

I got one when I started seeing them on TdF bikes.

Even if your frame is metal, the chain can dig deep gouges in the bottom bracket shell/chainstays which is a)unsightly and b) can be a stress point for future failure of the metal...no reason not to have one no matter what your frame is made of.

EDIT: The chaincatcher protects the frame by catching the chain if it is thrown inside the smallest chainring and guiding it back to the ring. Sometimes even a perfectly adjusted drivetrain throws the chain and then it can jam, causing gouges like what the OP experienced. There are different styles of chaincatchers, for both clamp-on and braze-on derailleurs.

I expect this was caused by good old "chain suck" where the chain sticks to the ring at the bottom and is drawn UP causing it to jam between the chain ring and chain stay. often caused by the rear mech tension being too high combined with worn rings and chain but can happen to anyone

A chain catcher is designed to prevent the chain being thrown off of the top of the small ring and falling DOWN. The catcher will simply guide the chain back on to the ring. This is what Schleck needed in the TDF to prevent his chain coming off.

A chain catcher wont prevent or do anything at all for chain suck. It is quite hard to drop a chain and get it jammed between the chain stay unless you back pedal after it is dropped.

Therefore if you want to avoid "doing a Schleck" buiy a chain catcher. If you want the best chance of avoiding chain suck and damaging your frame like this, keep your chain and rings in good condition.

The rest is luck

Yep, I have chaincatchers on both my aluminum mountain and carbon road bikes. I absolutely recommend a chaincatcher for all carbon frames, as I once saw a guy damage his expensive road frame around the BB area from dropping a chain. A $10 chaincatcher could have prevented all that heartache.

And a chain can drop for a myriad of reasons, not necessarily from slack. I have dropped a chain from hitting an unexpected jarring pothole before.

Chaincatcher is a no-brainer, folks!

Take no chances, assplosion could result

+1. It took 36 replies, but chain suck was the real culprit here.

Not sure what "keeping the water out" would do for you. Carbon fiber and resin aren't affected by water unless it would get in and freeze. That would cause any cracks to enlarge, but where you are hardly ever freezes.

However, one way that it might help would be to lock any frayed fibers together and minimize problems for you if you happened to touch it.

That's pretty bad.

How does a chain chain catcher work? Does it attach to the bottom bracket?

^
http://cdn2.media.cyclingnews.future...g_4946_600.jpg

@Crimsonghost

Sorry to hear of your misfortunes and sadly we (Ruckus Components) have seen a lot of this type of damage. Frames with extremely large and beefy chainstays sadly take a lot of this type of damage, but you are in luck because it is a fairly straight-forward repair. Often the big difference in the quoted price from the carbon fiber repair businesses is whether they include paint and clearcoat or charge hourly on top of that. It is best to get it repaired and fixed up and most places offer a pretty speedy turn-around at this point. Roughly we are around 2 week turn-around and $350 for this type of repair and that includes full paint and clearcoat restorations. If you have any follow-up questions feel free to shoot me an email at shawn@ruckuscomp.com

Shawn Small
Chief Engineer | Ruckus Components | rethinking carbon
shawn@ruckuscomp.com | http://www.ruckuscomp.com

This is great if you drop your chain from the top. If you get "chain-suck" from the bottom, as the OP's photos depict, the resulting damage will happen.

I use the Kedge for dropping the chain, but it won't do **** for chain-suck. I've found few products that address this issue, and have devised my own protector for the rare occasion it does suck up.

Worn chains, chain rings and mal-adjusted derailleurs are the most common causes for chain suck, but who wants to risk it happening once! A picture is worth a thousand words.

I barely drop a chain enough to justify $15 for a chaincatcher and have never had chain suck on a road bike.
The OP's looks like typical chain drop and spinning the crank trying to remount it, as he described.

Only takes once.

Well I said "barely" but just reading this thread, i'm getting that catcher you linked. But chain suck on a road bike? My guess is if you are riding a carbon road bike, your junk is not that whacked out to get any chainsuck.

Bingo.

Ive been looking at my rings and they do seem to have some more wear then I'm used to seeing. I also wasn't happy with my last tune up. So I'm sure that has something to do with it.

Well it looks like I was proven wrong in one post! Dude, good luck w/ your repair and take care of your junk! :)