You are playing Nightmare mode.
Setup: Set Overseer Maur没l and Chamber of Records aside, out of play.
Forced: When stage 2B is revealed, make Chamber of Records the active location (returning any currently active location to the staging area) and add Overseer Maur没l to the staging area. Then, shuffle all copies of Balin's Doom in the encounter discard pile back into the encounter deck.
"They seem to have made a last stand by both doors," he said; "but there were not many left by that time. So ended the attempt to retake Moria! It was valiant but foolish.". –Gandalf, The Fellowship of the Ring
Begin with the standard quest deck and encounter deck for The Seventh Level scenario.
Remove the following cards, in the specified quantities, from the standard encounter deck:
2x Plundered Armoury
2x Hidden Threat
2x Upper Hall
2x Goblin Scout
2x Goblin Swordsman
2x Goblin Spearman
Then, shuffle the encounter cards in this Nightmare Deck into the remainder of the standard The Seventh Level encounter deck.
Finally, flip this setup card over and place it next to the quest deck. Its effect remains active throughout the game, which is now ready to begin."Does not stack"
Some cards have passive abilities with the text "This ability does not stack with..." While two or more effects that do not stack with one another are active, only one of them will affect the game state.
3
3
12
1 
Overseer Maur没l gets +X +X and +X where X is the highest number of resources on a Goblin enemy in play.
The Players cannot win the game unless Overseer Maur没l is in the victory display.
Immune to player card effects.
Each Goblin enemy with at least 1 resource on it is immune to player events.
Forced: When a Goblin enemy engages a player, add 2 resources to that enemy.
"Now, I fear, we must say farewell to Balin son of Fundin."
–Gandalf, The Fellowship of the Ring
4
4
6
5
When Revealed: Add 1 resource to each Goblin enemy in play.
Forced: When a Goblin enemy with at least 1 resource on it is dealt any amount of damage, remove 1 resource from that enemy and cancel all damage just dealt to it.
4
2
3
1
Each Goblin enemy gets +1 for each resource on it. This ability does not stack with other copies of Goblin Skirmisher.
Shadow: Deal X damage to the defending character. X is the number of resources on attacking enemy.
2
1
4
8
When Revealed: Add 2 resources to Pit Goblin.
Shadow: If attacking enemy is a Goblin add 1 resource to it.
Forced: When a Goblin enemy enters play, add 1 resource to that enemy if Deep-Mines is in the staging area.
Shadow: Attacking enemy gets +1 Then, if attacking enemy is a Goblin deal it another shadow card.
Each Goblin in play gets +1 for each resource on it. This ability does not stack with other copies of Western Hall
Away beyond the shadows at the western end of the hall there came cries and horn–calls.
–The Fellowship of the Ring
When Revealed: Reveal the top X cards of the encounter deck, adding all enemies to the staging area. Discard the other revealed cards without resolving them. X is 2 plus the number of players not engaged with a Goblin enemy.
Eachoes ran along as they hurried forward; and there seemed to be the sound of many footfalls following their own. –The Fellowship of the Ring