The episode begins with Mr. Ernst handing out ribbons to the employees for going out of their way to help guests. When Mr. E gets to Jake's ribbons he is missing. Jake comes from the lodge with some young buckaroos on toy horses. Mr. E remarks that he will have to give Jake another ribbon, just then guests riding real horses come out of the lodge.
Danny, Melody and Brad are upset because Buddy is taking pictures of them because he is practicing to become a photojournalist. Jake arrives with pictures Buddy sent to be developed. Jake examines them and sees a black dot on one of Lake Benjamin and is convinced it is a lake monster. Jake wants to name it the Ernst Nest Monster. Jake recruits Buddy to help him look for the monster.
Later in the afternoon, Mr. Ernst introduces Danny, Melody, and Brad to Fenton Smith who is an archaeologist. Mr. E says that Fenton is here to study the Native American culture. Danny volunteers to take him horse riding.
During the ride, Danny and Fenton seem to be hitting it off. They stop and Fenton starts digging and it isn't long before he finds some arrowheads. Danny soon finds a bone and Fenton declares it human.
Fenton has unearthed a human skeleton. Fenton goes to hand Danny the brush to help but he isn't interested. Fenton says the skeleton is a young warrior about Danny's age. Fenton wants to take the stuff including the skeleton with them, but Danny wants it to stay. Fenton says since it is private land they don't need permits.
It isn't long before the skeleton and things are on display in the lodge and tickets are being sold to see them. Danny isn't pleased to see the tour and even more disappointed when he finds out that Fenton's entire crew is coming for three months. Danny tells Fenton and Mr. Ernst that the bones should be returned to the burial ground. However when Fenton tells Mr. E the artifacts are worth money he will hear none of Danny's concerns.
Jake and Buddy have only found garbage in their lake monster search. Danny arrives in a boat but doesn't want to tell them want is wrong. Later that night, Danny is trying to come up with a solution to the Fenton problem.
In the morning, Fenton and Ernst are in the lodge and the skeleton and artifacts are missing. Everyone (except Danny) arrives and no one has seen the things. Fenton believes that Danny has something to do it. He tells Ernst that if an employee is responsible they should be fired.
Danny and a horse are missing and no one can find them. He arrives and the others say that he is probably in trouble. Mr. E arrives wanting to talk to Danny. Danny quickly confesses that he took them. Danny says it isn't right to dig up someone it would be the same as digging up Ben Franklin or General Custard. Danny says he can't work at the Ranch if Fenton can dig. Fenton arrives with a contract for Ernst and says that his cut of the money has doubled. Ernst says the deal is off. Fenton is angry and leaves.
Jake is ready to send Buddy into the lake in a diving suit when Brad and Melody arrive. They tell the guys that they enlarged the pictures and the "lake monster" is just Buddy's finger on the camera. Jake pushes Buddy in the lake, but he is pulled in too.