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A club lichen, this species is typically found on acidic soil on rotting wood, moss or humus that covers tree bases. Its definitive feature is that it terminates in a flaring cup that when touched will release powdery soredia.
Wilcox Pass in the Banff National park -- a sub-alpine montane region of Alberta. A wet year produced a number of fungus in the area.
Photo by K. Van Katwyk Literature cited: Johnson, D., Kershaw, L., MacKinnon, A., Pojar, J. 1995. Plants of the Western boreal Forest & Aspen Parkland. Lone Pine publishing. Edmonton.