That is an odd one, if it was undisturbed soil, whatever it was had to be real old, maybe it was fossilized ? In NYC when that sort of thing happens, it becomes an indefinite work stoppage.
I've never seen anything like that when I did that kind of work. I do remember finding rubble from the local quarry, that we used on culvert aprons, that had fossils in it, wish I saved one of those, might even still be there where we put that culvert in. It was the scalloped or corrugated looking shell, 6" blue colored stone rubble, which came out of the mountain that is all but about gone now, over in Grafton NY. That kind of clay is something isn't it? Looks like could make bricks or ceramic with it. I've seen some of that blue clay over in the underside of the G.E. landfill in Waterford NY, now the Momentive plant. Must be a near the river geological thing. Castleton and points south along that area was always a fun place to travel, was always lots to seem be it old junk, homes or old farms etc, more so if you head east from the valley a bit.
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