Bloodkelp

Bloodkelp was contained in Basket of Bloodkelp. The item also dropped from the following naga on Alcaz Island in Dustwallow Marsh:
 * Tidelord Rrurgaz
 * Strashaz Warrior
 * Strashaz Siren
 * Strashaz Sorceress
 * Strashaz Serpent Guard
 * Strashaz Myrmidon

As a quest objective
This item was an objective of I See Alcaz Island In Your Future...