The brave charter bearers rest for a week after returning from their victory against the Stag Lord and his minions. A new charter is sent, declaring them rulers of a barony made of any land they may claim in the Stolen Lands. They dub this new land Eternya. They spend the next week mapping and exploring the hills connecting Oleg's trading post with the lair of the Stag Lord. During this time, they slay a giant spider in its nest, find an abandoned gold mine, a rickety old bridge, and a ford crossing the junction of the Shrike and Thorn rivers. At the Stag Lords fort, they discover that someone has been feeding the captive Owlbear in their absence. Down in the basement, they discover the lair of Nugrah the Decrepit. He is a mad and filthy druid, the father of the stag lord. He uses his divine power to meld into the wall, behind which he starts casting a battery of spells. The party pinpoints his location, and waits for him to emerge. He barrels out in the form of a Wolverine. He is summarily cut down by the assembled might of Phineous, Karasu, and Akir.
The new rulers of Eternya then found the capital at the site of the fort, naming it Staghome. They build a pier, a road, and appoint various local personalities posts in the fledgling government. The party, now Magister Phineous, Baron Akir, and Spymaster Karasu, set out to explore the nearby hills. There they encounter four of the rare and dreaded Tatzlewurms. They are defeated and partially devoured. Marshal Kesten Garess discovers the bodies the next day, and chases off the feeding wurms with the help of the watch. Their goods and possessions are recovered, and bodies burned on a funeral pyre just outside of town.