After you become the Necromancer's Aprentice, a guard will stop you and inform you that Bentic (The scholar) rests with the Lurker, and Devon (The fellow who rescued you from the water) has been thrown in jail. If you ask why, the guard will suggest that you ask Devon for yourself.
Return to the palace in Central Tenebrae and go down the stairs in the west part of the castle. This will put you in the pictured region. Pull the lever beside the door with the sign "Authorized Personel Only". Go inside, and talk to Devon who is locked away in the indicated cell. He doesn't know why he's been imprisoned and asks you to go find Salkind and ask.
Salkind is with Lady Mordea as usual, and he mentions that he keeps charges and what not in his log book. You can find his log book in his house in East Tenebrae -- The one with the stone wall around it.
If you go read the log book, it mentions that the confiscated research of Bentic's has been secured in the evidence chamber down in the dungeon beneath the castle. So, head back there. The evidence room is the small room with no doors (marked "Log" above). Use Mythran's scoll to open it. You can't get the book, but you can read it. Surprise surprise.
When you finish with the journal, three guards will arrest you and take you to the docks where Devon awaits execution. Let a few folks in on the surprise, and watch Lady Mordea get what she deserves.
Devon will leave for a while, promising to return. He returns after Hydros is free.
After he returns and Pyros is free, you can ask him for the Tear of Seas. He'll give you a key to the chest in the south west corner of the palace.
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