[guyryan100]

I've figured out that the shiny part in the top of the picture is oil in the pan, so one risk/strategy is knocking it down into the pan. As you can see there's some painters tape on there holding the bit onto its holder, I wouldn't be worried about the metal attachment being in the oil plan but painters tape might not be the best addition.

I'm going to get a magnet stick and try that, the shop vac idea is good too, I'm realizing that unless I can grab the very top end of it, there's no pulling it up through the hole - its too long to come out sideways. So my best bet might be to drop it into the pan. From there I could take out the oil pan I suppose.