Large Crypt
When you return to Fort Locke, Vallis will try to usurp command from Commander Tann with the help of two soldiers. Your available dialogue options present you with choices between earning a Lawful point, a Good point, or Evil points. Straight melee combat is effective although Vallis takes a fair bit of persistence due to his high hit points and tendency to quaff healing potions. Take out the other two soldiers first. Vallis leaves behind a Chainmail +1.
When that is finished, speak to Marshall Cormick for 75xp and a discount at Jacoby's. Speak again to Commander Tann where Vallis once stood, and he'll ask for your help in clearing out the bandits. Patrols will resume again.