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The entire rift is surrounded by mountains. One of the only ways to go down the mountain is by going through Shor's Stone. The Ebony mining settlement is located on a slope that descends to Eastmarch. Redbelly Mine which is the mine owned by the town is located on the eastern side at the base of the mountain.
The settlement of Shor's Stone was under Ebonheart Pact control. At the time, The Companions had there headquarters in Fallowstone Hall. The town was under attack by an alliance of Reachman known as the Three Tribes which consisted of the Boneshaper Clan, the Rageclaw Clan, and the Stonetalon Clan. They were ordered by the Worm Cult by then ruled by Thallik Wormfather to attack Fallowstone Hall and retrieve the legendary axe Wuuthrad to then revive the giant Sinmur. The town and the hall were saved by the Vestige.
A master thief by the name of Drayven Indoril who may have been the infamous Nightingale of legends has been said to retire to Shor's Stone. By the time the Skyrim Civil War began, Shor's Stone became occupied by the Stormcloak Rebellion lead by Ulfric Stormcloak as did Riften. The town however, was indanger of going out of business when Redbelly Mine became infested by Frostbite Spiders. Eventually, the Last Dragonborn came through town and vanquished the spiders thus saving the village.