When you visited Hazard the first time, you met Gethro, the Hierophant's right-hand man. After Gorham attacked the mansion and kidnapped Martjan. Gethro met with you again and it was decided that the party would travel to Vorch in search of Pafthinel while the Hierophant sent the soliders at Solyhill to rescue Martjan and confront Gorham. They were able to scry his location because he left some clothing behind during the attack.
When you returned from Vorch, you heard the rumors that the soliders had been killed by a dragon. Back in Hazard, Domarc met with the Hierophant, who confirmed the rumors and informed him that there were survivors, and that Gethro had gone to Solyhill to investigate exactly what happened.
Because of the attack, and the fact that the Hierophant ordered it in secret, the public sentiment in Hazard is very much anti-Hierophant right now, to the point where many are calling for his position to be abolished and for Hazard to go back to the rule of kings. The Hierophant himself seems fairly unconcerned by this.
1. To the best of your knowledge, there really was a dragon attack.
2. According to the Hierophant, Gethro is here in Solyhill investigating the attack.
3. Witnesses saw Gorham fly away from Hazard with Martjan. When he appeared to you in the column of steam, Gorham told you that Martjan is alive and well and still with him.