After much discussion, the party decided to claim the Sea Ghost as their own. But to have a major rebuild, turning it from a cargo ship into a passenger yacht. The shipwright informed them it would take a month to perform all the necessary changes.
The party is once again called together by the Town Council, who are concerned about the nearness of a possible tribe of lizardfolk on the warpath. The council requested that they investigate, and if they can, take care of the problem.
Heading out along a coastal trail that leads to the area, as they cross the marshy ford of the Dunwater, they were ambushed by a roving band of bulliwugs. After defeating them, they discovered a map of the area, with several locations marked on it, and written in a strange language (bullywug).
Continuing along the path to a raised section of the promontory where the lizardfolk are laired, they come to a short cave entrance closed off by a set of stone doors. After a short discussion, they start trying to bust down the doors, as it is bared. While they managed to bust it down, they alerted the guards and a fight ensued. Taking care not to kill any of the lizardfoilk, they are quickly outnumbered by the surprisingly well organized and trained lizard folk, who seem to be using weapons of the similar make as those in the hidden on the Sea Ghost.
They were given the chance to surrender, and did so. Divested of their weapons, and even bound so that caster could not cast spells, they were lead though the lair to the chieftain of the lizardfolk. After a brief discussion, they came to an understanding, and then lizardfolk informed them that they were arming themselves, training, and preparing not to attack Saltmarsh, but the lair that they were kicked out of by a tribe of sahuagin.
The lizardfolk agreed to send a small embassy back with the party, to speak to the council, and to bring others that they have struck an alliance with; a local tribe of locathah and merfolk. The sea elves were to far away for them to imagine that they might be able to help, but with the party suggesting that they bring Oceanus in on the talks, they quickly agreed.