Varnifane

Lying within the Welkwood, this was a treehouse settlement of some 40 rare Grugach elves until recently. The elves probably could have fought off the humanoids that attacked them, but for one thing; they were still recovering from a savage assault by a large band of marauding kech. The wily humanoids struck so swiftly afterward that the elves were overwhelmed.

Honors in the humanoid attack went to an elite phalanx of forest bugbears whose ability to surprise proved vital in the initial wave of attacks. The bugbears now hold pride of place in the mixed (bugbear, goblin, gnoll, orc) group of some 125 humanoids who use this site as a base for further raids. Because they broke through first, the bugbears got their hands on the great magical treasure the grugach held in their homes, and now claim it them for themselves.

Centuries past, the grugach had stumbled upon the overgrown entrance to an ancient dwarven warren, and against their natural instincts, they entered it, because the sense of magic was strong about the place. Inside the ruins, they walked, revolted and disgusted, past the remains of scores of long-dead dwarves. They found a vast collection of magical axes-no fewer than five, each a battle axe +3 bearing dwarven runes (the axes are +5 in the hands of dwarves). The grugach took the axes, but did not use them, fearing the wrath of a dwarven Power.

The bugbears had no such fear. Their leaders brandish the axes proudly, and the other humanoids have seen them in action. They are now all too ready to defer to their furry cousins. The humanoids found the dwarven warren and now live within it, with a handful of spies in the treehouses by night to spy out intruders.

Of course, if the dwarven axes were recovered and returned to their rightful owners (descendants of the original dwarves, now living in Ulek) the rewards for PCs would be great indeed.