Darmot Harthkell and Kil-Wal`the, relaxing at the inn, felt themselves spied upon by an elegant stranger. After a bit of strange and awkward conversation, Harthkell learned that this stranger’s name was Billy.
With Billy eavesdropping, Syrax Skydriven told Harthkell that they planned to seal the entrance that the goblins were using to enter the old town. However, they needed the party to make the original meeting so that the goblins would be distracted long enough for the work to be complete. The party would have to escape through whatever exit allowed the goblins to make raids outside the walls. Harthkell agreed, and after hearing that the renegade guard Bohr Korrath might be down in the complex below the city, Billy offered to pose as Gorrie for the meeting.
The next morning the party set out. On their way to the old town, a mysterious traveler named Argent offered to come along in exchange for help discovering what was poisoning the woods around the mountain. The four of them descended into the tunnels and made a meeting with Bulgosh and Gorgleshek. Billy, posing as Gorrie, took Bulgosh aside to discuss terms of trade. The party noticed that the two goblin leaders seemed at odds, so they encouraged a fight between them. Gorgleshek killed Bulgosh, then the party killed Gorgleshek and the guardian goblins.
They left one goblin alive, and Kil gave him his white dragon pelt and told him that the tribe had a new ruler now: Oroborus, who had sent Kil as his emissary. The goblin, terrified, agreed to rule in the name of Oroborus. He also told them that the exit the goblins used was to the west.
The party found a temple to Maglubiyet and slaughtered her priest and worshipers there. Harthkell defiled the shrine by destroying the axe that was the symbol of the goddess. They also cleaned a statue to Fharlanghn of its graffiti and found that it hid a pair of magic boots which Billy took.