Notes: Found on the bark of live oak.
The micro-shot is of the gill edge at 400x in KOH. The metuloid cystidia here are numerous. The cystidia are kinda interestingly encrusted, many encrusted in the top half, ending in a hard line.
Adding more micro details:
The second micro-shot is of the squashed gill edge at 1000x in congo red. Here are the smaller cystidia with a single projection.
The third micro-shot is of the squashed gill face at 1000x in congo red. Here are the encrusted metuloid cystidia.
The forth micro-shot is of spores from the gill at 1000x in congo red. The ave. spore size is : length – 7.16 +/- 0.43 (err 0.17) um, width – 5.77 +/- 0.58 um (err: 0.22) – q : 1.25 +/- 0.11, on 8 spores.
With the single projections to the smaller cystidia, from Funga Nordica this matches – H. grisea. It seems some sources have Hohenbuehelia atrocaerulea var. grisea and other have Hohenbuehelia grisea. And Index Fungorum call these synonyms. So, anyway this seems to be a good id, even though others seem to find this id fairly questionable or uncertain.