I finished most of the first part of SoBH and was about to leave when a guard came in and told about a stolen black pearl and murdered commoners. Then about the need to see Welcar and hopefully resolve the problem.
Next, the guard left and seemingly came right back into the room concerning bandits attacking.
So, I left and found the bandits and the note they were carrying...gave it to Peltar and he said he didn't know anything about "Hand of Glory" and while the dialog option was to continue it just died like an 'End of Dialog'.
Still haven't found Welcar.

Can someone please tell me where he's located? I don't think I'll be able to leave until I can resolve this quest because there is no dialog options with Peltar for my party to teleport back. Thanks for any help.