I've watched a Pileated excavate a hole into a mature maple tree to create a nest. This is exactly what the shavings look like as they were discharged from the hole. As the shavings are peeled off, they were carried to the opening and dropped out to fall the 25 feet to the ground below.
It happened at our old river place. When I first arrived, I walked down to the river and stopped at a maple tree that had this curious carpet of wood chips and shavings surrounding it. I stood there, dumbfounded, and trying to figure out what the heck happened. Then one landed on my head and I looked up. Woody was looking down at me, cocking his head left and right, likely trying to decide if I was there to help excavate or clean up.
