CLOSED: No bug, but the bug's handywork. ID?

Georgetown, SC(Zone 8a)

I figure this was created by some sort of insect, so I figure this is the place to post this question. This is on a Live Oak outside my office building. It started as a patch about a foot long and maybe half as wide, but over the past few weeks has spreak up the centermost branch and outward on some other limbs as well. At first I thought it was a cocoon of some sort, but now I really have NO idea. Can't see any critters at all. If this is some weird form of fungus or something harmful to the tree, then I want to let the landscaping folks know. If it's a bug, then I'm very curious as to what kind. I have a long shot and a two shots from closer up. SHould be obvious in the pics as to what I'm talkin' about. :)
Thanks!
Deb

Thumbnail by DebinSC
Georgetown, SC(Zone 8a)

Closer pic...

Thumbnail by DebinSC
Georgetown, SC(Zone 8a)

And finally, really close.

Thumbnail by DebinSC
Lutz, FL(Zone 9b)

This may be caused by Archipsocus nomas aka webbing bark louse

http://bexar-tx.tamu.edu/HomeHort/F1Column/2003Articles/AUG3.htm

http://agnews.tamu.edu/dailynews/stories/HORT/Aug1304a.htm

The Woodlands, TX(Zone 8b)

I had that last year on my Oaks, I think it's called Bark Lice. They are cousins to the Book Lice and it doesn't look like they do any damage.

http://agnews.tamu.edu/dailynews/stories/HORT/Aug1304a.htm

Georgetown, SC(Zone 8a)

Quoting:
"They start to appear in the summer, especially after there's been an unusually large amount of moisture or rain."
Odd, since we've had a drought all summer. Having said that, it's been very humid. So.... Fly_girl, you've done it again! That has to be it. I'm glad it won't hurt the tree. :) Thanks for the I.D.
Deb

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