When talking to Opal, Daran explains that he knows that the that the ruins in Old Owl Well were former watchtowers of an ancient magic empire known as Netheril, and he worries that dangerous magic might be dormant there. Recently, undead have been spotted chasing away prospectors and travellers on the roads nearby. He sends the party to discover what is causing the sudden increase of necromantic magic in the area.
The adventurers locate the tower that the magic is emanating from and discover a Red Wizard of Thay named Homun Kost inside. Kost is a stout, red-robed figure with sallow skin, a shaved scalp, and a black tattoo on his forehead. He has been delving into necrotic magic in the tower and sought to use their power for himself. The party battle him and his several zombie minions. Before they could land the killing blow, he disappeared. Despite this, the evil magic had been cleansed and the minor were able to return to the area and work.
While in the area, the band of adventurers also locate and oust a band of ores lurking at Wyvern Tor.
Opal, Gobnak, Vogen, Barry and Arvard returned to Phandalin to investigate the Black Spider once more.