Yuck! Not exactly a pretty sight, is it? This is a grubworm. In Texas, grubworms are usually the larval stage of the June Bug, also known as the May Beetle or June Beetle. Adult beetles emerge from the ground in late spring or early summer. After mating, the female tunnels back into the soil and lays eggs. The eggs hatch into the larval grubworm stage, followed by a pupal stage the following spring. Then, when the timing is right, adult beetles emerge from the pupal stage and the entire cycle begins anew.
I ran across this little guy and some of his relatives while digging and transplanting irises a couple of weeks ago. Some very small grubs were actually attached to the soil surrounding several iris rhizomes. Grubworms do a great deal of damage to turfgrass lawns in Texas as well as to other plants. The only thing they might actually be useful for is fishing bait!