Midrash for Chullin 70:18
הרי הן כתרומה לטמא שנים ולפסול אחד:
It is treated as terumah, that is, two stages are unclean and one stage invalid.<span class="x" onmousemove="('comment',' I.e., the first and second degrees of uncleanness are each unclean, for each can still pass on its uncleanness, but the third degree is only invalid for it cannot pass on its uncleanness.');"><sup>8</sup></span>
Sifrei Devarim
"On the earth shall you spill it as water": Just as it is permitted to derive benefit from water, it is permitted to derive benefit from blood — Just as water renders seed susceptible (of incurring tumah), so, blood. Just as water need not be covered, so blood (that of a disqualified offering which has been slaughtered) need not be covered.
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