I'm not sure, but I guess you have to talk to the spirits there for that to happen.
It's possible I didn't do that, but since this was an official bounty from the Paladins, the expected thing is that Paladins provide a reward. They're not going to say "jolly good now go talk to some ghost somewhere for your reward".
I didn't get it first play through but this time I did. Could be you have to speak to a spirit as in the Saw Mill this time I got a pop up saying "take it to the Paladins" after talking to a ghost in Mummie's workshop.
In any case giving a level 9 reward is odd. Almost like the quest should have been placed elsewhere.
Another weird thing is I killed Sahelia in Fort Joy. After turning in the Saw Mill Elf quest (and giving her his arm or whatever) you can't own up to that any more although before that point you can own up (and they get upset).
I wanted to say "Well thanks for the thanks but I did actually kill her by mistake" but my chance was gone.
That whole quest/area is a bit bugged still I think. Not badly (it doesn't really matter) but it doesn't feel quite right.
