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The party is searching for Opal, who was arrested.
Recently, the court system in Neverwinter has changed. Now, it's “if you've done the crime, you do the time” and there is no court system to speak of. The holes is generally where people who are to be executed are sent.
The party decides to gather information. Thorfin finds out that there is no organized criminal element in Neverwinter. Boom B-0X finds out that Dagult Thornpipe was a halfling warehouse worker. He got into a rather heated argument with the orc in question, which led to the orc stabbing him in the chest and making his escape. Not much is known about the orc as he was not a local to the immediate area. Claire finds out about a secret passageway that might lead into Castle Neverwinter, with an entrance that may be somewhere along the bay (or so the rumors from years ago tell). Alistair's character finds out that there are not other entrances to the holes as the volcano eruption caused havoc years ago. Some people are talking about rumors that there will be a lot of people at the execution in two days, with more guards called in than normal. So rescuing Opal on the day of execution is probably not going to happen. Thorfinn doesn't find out much about the orc murderer, but an orc matching his description has made inquiries about being smuggled out of town but has been turned down at every point. The city has been mostly crime-free for a good portion of recent times.
The party decides to split in two: investigate legal ways to exculpate Opal, and find the secret tunnels. Thorfinn and Wraq enter the prison and attempt to reach Opal, but it does not going well. Thorfinn attempts to bribe the guard, and he and Wraq are summarily arrested for attempting to bribe a duly-appointed guard of Waterdee— err, Neverwinter. The guards surround Thorfinn, and shackle him, taking the time to remove his lock picks and thieves tools. He and Wraq are brought through a circuitous route through the Holes, which seem to be a volcanic honeycomb of cells. They are brought to a platform made of dark metal, with a button that raises the platform up to an empty cell. The pair are unlocked and pushed into the cell. Thorfinn attempts to pick the lock, but is clubbed and probably has his hand broken.
The non-arrested party goes to the port, and sees a field of geysers. The rocky beach presses upwards to meet the Neverwinter River, which seems to careen off about 40 feet into a waterfall in the sea.