Alison:
I am a bit confused. The Paladin went after a good gold dragon? Why? And the people in the overtly good place lie about knowing where one is? Can you see my confusion?
I took the description as Derne's holy quest to find a lost holy item, the source of the holy water into the lake. It was not that he was hunting dragons, but that it seemed likely that the holy item was either resident in the dragons' demesne, or potentially that they were protecting it, or perhaps indeed central to their home and its safety - does the relic guard the dragons, or the dragons guard the relic, or is it simply lost within one dragon's hoard?
Is Derne lost to the forces of evil along the trail of no animals?
Is Derne prisoner to the dragons - "Welcome, but now you can never leave, friend, sorry."
Is Derne stepping up to be protector to the relic and the dragons ala the bravest of three brothers guarding the Grail?
Atraxus:
It could be a greater good thing. IIRC, Derne is trying to find the source of the holy water. If finding and sharing that source would be harmful to the gold dragons that live there, I can see why the paladin order and other goodly folk would stay mum about it.
The paladin order being mum about location of hidden holy relics is one thing, and I agree that would make sense v. "Oh the Holy Handgrenade of Antioch? Third vault, second rack, second shelf, fourth on the shelf - password for the magical wards is 'Fluffernutter'."
The lying about searches for it, and where the paladin is, and not bothering to check or monitor on their paladins out and about the world... really?
Not caring about the evils the paladins were out to stop? Even if this is a "we're pretending X to test their metal"... it's really bad. REALLY bad. You're projecting to the world that your people don't matter, their quests are not important enough to see if the bad things are stopped or lost things found... oh, but trust us to do whatever is needed??
In the professed bastion of law and order and fellowship?
Is this early onset dementia?
Or magical curse or geas of some sort (I'm presuming knowledge of that would be beyond first level casters)?
Or Something foul or impersonating the paladin order?