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The founder of the Tanuki clan was a Badger samurai, who included investigating the Shinomen Forest among his duties.  He was lost in the forest for more than a year and when he returned told about terrifying dreams of strange spirits. The Emperor was a scholarly man with an interest in the Spirit Realms and learned all he could about what the man had seen. At the conclusion of their discussions, the Emperor declared the samurai to be the lord of a new Minor Clan, which the Badger named the Tanuki Clan in honor of his parent clan. 
Their duty was to delve into the mysteries of the Shinomen. The clan dwelled within a small grove of trees on the outskirts of the forest, known as the Tanuki Grove, and submitted regular reports to the Imperial City. 
The Emperor who created the clan died shortly thereafter, and his heir found the Tanuki absurd but amusing, and read their reports to the Imperial Court as a form of entertainment. In the generation after that, the new Emperor sought to dissolve the clan and erased what he saw as an embarrassment to his grandfather's name.  He ordered the whole clan summoned to the Imperial Court. The order was never obeyed, however, because the entire clan had vanished into the Shinomen.  When Imperial agents arrived at Tanuki Grove, they found nothing, and the Tanuki samurai were stricken from many records. 
The Tanuki Clan was lost to history, and none knew of them until a scroll was discovered in the 12th century revealing the clan's existance. The scroll was gifted to the Unicorn Clan by Yasuki Jinn-Kuen, who was rescued from bandits.  The scroll was then read by Moto Jin-sahn, who uncovered that the scroll was the history of a lost minor clan. The clan had accomplished little in the century they had existed, but had come to own a string of fine sake houses. 
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