Council of Elrond

What happens to Lorien. Card text says :

In addition, unless Galadriel is at Lórien or she is not in play, Lórien is considered a Free-hold (for the purposes of healing and playing hazards). +2 prowess to all automatic-attacks at sites in Hollin, Redhorn Gate, and Wold & Foothills.

My opponent argues

The key clause is "unless Galadriel is at Lórien or she is not in play" — this is an OR of two independent escape conditions . So Lórien is downgraded to a Free-hold only when Galadriel is in play and stationed somewhere other than Lórien.

This would mean it is only effective against decks inherently with Galadriel in it. I argue that any deck WITHOUT Galdriel is automatically affected.

Can some give me clarity.

Found this. Which suggest my opponent is right (which I hate )

CoE RULINGS DIGEST #55
27-10-2003 Author: Chad Martin Source
QUERY 23
The Card of the Day archives on the Balrog of Moria states:

It basically restricts the movement of Galadriel while she’s in play. If Galadriel is not in Lórien at the time of playing this card then Lórien becomes a Free-hold instead of a Haven. I believe this is permanent until Balrog is discarded.

This doesn’t sound right to me. It also doesn’t feel right that the fear of the Balrog of Moria being played would resrict a character’s movement like that.

There is also a clarification published in the DM Player Guide that states this effect is not used if Galadriel is out of play, even if she is eliminated. If her “spirit” going back to Lórien negates the effect surely her turning up there in person should also?

If at any time the Balrog of Moria is in play and Galadriel is at Lórien, then Lórien is a Haven. If at any time the Balrog of Moria and Galadriel are in play and Galadriel is not at Lórien, Lórien is a Free-hold. If at any time the BoM is in play and Galadriel is not in play, Lórien is a Haven.

The site type of Lórien when the BoM and Galadriel are in play can change at any time based on the location of Galadriel. I hope that’s explicit enough.

I wonder whether "+2 prowess to all automatic-attacks at sites in Hollin, Redhorn Gate, and Wold & Foothills." depends on the presence of Galadriel in play/at Lórien. After all, the texts are in the same paragraph.