Blue fungus!

I was lucky enough to be invited to go with three friends to the mountains in Kananaskis for the whole day today. The University of Calgary had a Biogeoscience Open House at their Field Station near Barrier Lake today. The weather was absolutely perfect, until we drove home and the sky blackened quickly. Had some hail in my area this evening. We viewed the various exhibits at the centre and thoroughly enjoyed (was it really THREE times?) the fresh fruit salad, pastries and coffee. Afterwards, we went for a botany walk in the area, including through the woods that edge Barrier Lake and the various plants were recorded. This BLUE fungus was discovered there - we've never seen anything like it before! I used flash for this photo, which has emphasized a little too much the "fringing" around the edges. These fungi looked rather like small blue stones. We'd love it if someone is able to suggest an ID!

Later: thanks so much for the ID, Doug! If you are correct (and to my untrained eye, it looks like Hydnellum caeruleum could be an accurate ID), then the following information will apply:

"Hydnellum is a very interesting genus with very unusual fruiting bodies. At least you might consider them unusual if you're used to only looking at mushroom-like fruiting bodies. Hydnellum fruiting bodies are distinguished by their indeterminate growth habit (they can engulf twigs and leaves) and, to bear their basidiospores, they have teeth on the underside instead of gills or pores." From botit.botany.wisc.edu/toms_fungi/aug2003.html. I remember it had grown around two blades of grass.