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Cladonia cristatella
Very small bluish-gray lichen with distinct red tops. Lichens are actually a symbiotic relationship between a fungus and very often an algae. This makes them a bit more complicated as an organism. They are traditionally named after their fungal component. The algae in this species is Trebouxia erici.
Woodlands in Connetquot State Park, NY. Growing profusely on some of the decaying downed trees.
Some general info on Lichens: http://www.backyardnature.net/lichens.ht...
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