What to do with dud peat pellets from seed starting?

[TCLynx]

Wasn't sure where the best place for this would be but I've lately started a bunch of seeds but depending on the type, some just don't have as great a germination rate and I must not have planted enough seeds in each pellet to ensure that at least one would come up in each.  So, I've got lots of duds.

So what do you do with the dud used peat pellets? 
Seems a waste to just rip off the mesh and return the peat to the potting soil bin?

Does anyone re-use them? 
How would one make sure they were not building up mold and fungus that would overwhelm new seedlings? 
If they dry out, how best to re-hydrate the already expanded water repellent peat pellet?

[Paul Letby]

I had reused some of my peat pellets this spring. Fungus wasn't a problem luckily. To rehydrate dry expanded peat pellets I put them in a tray of water I had just boiled. Works fast, but have to wait for them to cool. The boiling water may kill most baddies living in the peat.