Jarl says that the drought hanging over the region has put everyone on edge, even the Droog. The Iliarth River is the "shallowest it's even been", and the falls are "just a trickle". He's not surprised that the Krug invaded the Crystwind Mines, since it's still cool underground.
With the return of the Maljin, Jarl says that he and Cindra went to see Utraean Priest Sarden and Conjuror Orkin Umberdeep after the red fog appeared, but that the rest of the town was already there. He claims that the tavern is the only safe place in town.