This is the Blue Stain Fungus. I found it on a chopped piece of hardwood near the property line of the woods behind the high school. It is a species of sac fungus and spreads to pine and other hardwood trees. This fungus is prominent in forests between Mexico and Canada, including the Rocky Mountains.
The Nectria cinnabarina fungus that causes a disease to appear on weak and dying trees. The tree in the picture was observed towards the entrance of the woods behind the high school. This fungus causes long lesions on the stems and branches of decaying trees. When the disease first appears, it can be seen as a bright, coral pink fungal pads that erupt from diseased or dead bark. These pads turns black with age, so the disease on the pictured tree is most likely fairly mature.
I think. on dead wood