Gandalf's Staff

[Kuruharan]

the Balrog, being evil, at least got some kind of message, greeting card

Well, he allowed the orcs to stay for 539 years without eating...all of them.

However, it is very curious that he did not seem to take part in the destruction of Balin's colony, or at least he is not mentioned.

Probably all the thrashing about woke him up and he could not quite drift back to sleep (having rocks plopped on your head might have that effect). That might explain why he took such a personal hand in trying to rid himself of the Fellowship. He wanted some peace and quiet. It seems to take Balrogs a long time to settle down and fall asleep (about 20 years or so, you have to get the rocks underneath you just right).

Note how the orcs fell perfectly silent when the Balrog entered. He had made it painfully evident to them what he wanted.

So why bother carrying on the chase?

To make sure they actually went, of course.

I doubt that he would hold too much fear for Sauron (of whom Gandalf was only the equal at full power), even with the Ring.

Yes, but if Gandalf could master the Ring in man's clothing, surely the Balrog could master the Ring in...balrog's clothing.

(Here they come, I can see them now. Someone's going to mention them. The Twin Terrors of Balrog wings and Balrog size. It was inevitable.)

Whoever gave the Dwarves the right of occupation?

Mahal, who made the mountains before the Dawn of Time. As clear a claim of ownership as I've ever seen.