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If I remember correctly, they are caused by disease in the soil or grass. The rings appear after a lot of rain. The dampness must activate the fungus. We had the same thing in England on our lawn. There were no mushrooms, just big dark green circles.
The stuff that grew in my lawn was flat on top but had mushroomy stems. They had the texture of a mushroom. And come to think about it they did always show up after a lot of rain, and in the shady part of the yard.
I'm just throwing a thought out there, but the fairy ring pictured looks to me to be the general lid diameter of a septic tank. And if it's been raining real hard, the water table in the soil would rise, and perhaps some of the "hidden treasure" inside the tank itself could seep out into the soil. The result could then be a very well fed circle of mushrooms
Sean
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