"As a living white dragon, Arauthator haunted the Sea of Moving Ice like an avenging wind, eating and enslaving the lesser races and forging his lair in the heart of this, the largest berg, Oyaviggaton. Personifying the brutality and savagery that is common among white dragons, Old Icy Death is a solid ally of the Cult of the Dragon.
In addition to his size, cunning, and ferocity, Arauthator wields spellcasting power that makes him a particularly dangerous foe. More than a century ago, during one of the period of excessive draconic violence known as the Rage of Dragons, Arauthator joined with a dozen other dragons in attacking the Hosttower of the Arcane in Luskan. Their assault toppled the west arm of the tower, and Arauthator scooped up numerous items of great magical importance and power, including at least three tomes of rare spells. The possibility of recovering those books is part of what drew me to the Sea of Moving Ice, as well as finding the Draakhorn to complete my agreement with Imani.
Of course, I expected to be able to negotiate with Arauthator if need be, but the Cult of the Dragon beat me here, and they convinced Old Icy Death to undergo the ritual that would turn him into a Dracolich. This, of course, made what would otherwise be an unreasonable tyrant, into a raving mad narcissist. I was captured, and all of my entourage were killed. It is only that I offered to translate some of these obscure texts that caused him to spare me."
Maccath paused to answer any questions, and later explained a little on dracoliches: "Creating a dracolich requires the cooperation of the dragon and a group of mages or cultists that can perform the terrible ritual. During the ritual, the dragon consumes a toxic brew that slays it instantly. The attendant spellcasters then ensnare its spirit and transfer it to a special gemstone that functions like a lich’s phylactery. As the dragon’s flesh rots away, the spirit inside the gem returns to animate the dragon’s bones.
If a dracolich’s physical form is ever destroyed, its spirit returns to the gem as long as the two are on the same plane. If the dracolich’s spirit gem is taken to another plane, the dracolich’s spirit has nowhere to go when its undead body is destroyed and simply passes into the afterlife. If you wish to truly defeat a dracolich, then you must find this gem."
She also added more on the Cult of the Dragon, "When I first arrived, the Cult was still here, negotiating payment with the dragon for services rendered. I met with this group's leader, Wyrmspeaker Varram the White. Thinking me not any threat, he revealed to me over dinner that when he left, he was heading to explore the Tomb of Deridius. In an effort to impress me, he told me that he had discovered the tomb east of Boareskyr Bridge, in the Serpent Hills."