Waking up in the morning and finding Noc missing, the party goes to the Prime Forge to turn in the shards to Telchar. They find Noc, and after turning in the shards (somewhat reluctantly on Noc’s part) head down to find out what is happening with the gnome. Sick gnomes attack them in the dark, and after defeated them and taking their treasure, the party continues on the gnome city.
Accessing the city through a strange door, they find only death. In the heart of the city, a hole has be dug up into the main square, and as Paelias inspects it, a black tentacle strikes him from within. As the party flees back to Nogrod, they loose track of Banshee and find him where the gnomes attacked, looking none the worse for wear. The gnome bodies are missing! The party sleeps in Nogrod after alerting the guard to the horror below.