A Plague Upon Thee

Now that we have plenty of termites, take this steel reinforced barrel to the Northridge Lumber Mill south of Hearthglen--you'll find it to the west of the road that leads you up to the town.

Once there, place the barrel in the center of the lumber mill; someplace high, like on a crate or something.

After you open it, the rest should take care of itself. Just come back here and I'll reward you for helping me.