'Glauconite pellets', discovered in the bottom sediments of the Queen Charlotte Sound on the British Columbia continental shelf, consist of interstratified glauconite-montmorillonoid and kaolin. Expansion of the interstratified material to form a broad diffuse peak on glyceration reflects the presence of the montmorillonoid component. Potassium saturation followed by a series of heat treatments produced an asymmetrical 9.94 Å peak. The clay fraction associated with the 'glauconite pellets' was composed of predominantly montmorillonoid with lesser amounts of kaolin and chlorite. These 'glauconite pellets' may be either residual (eroded out of outcrops on the sea floor), relic Pleistocene, or Recent. It is suspected, regardless of the time of formation, that this particular glauconite formed diagenetically from montmorillonoid by adsorption of potassium in interlamellar positions and possibly some substitution of magnesium and iron for aluminum in octahedral positions.