in the mine, near the altar there's a bed. You can found lockpick close to it and there's also a lockpick on the table where you find axe.
use the lockpick to open the box on the altar.
there you will find a contract, read it.
met with the knight (Taras) choose dialog option about the contract.
from here on, you can manage yourself. the scene later showing you go out from the mine with Taras and later have conversation with villagers and the priest.
calm the hell down and everyone happy.
