Pirate Pete appears in Telepath RPG Chapter 2.
"[He begins to wail.] Ohhhh! Me poor ship! Smashed to ruins by those narsty flyin' beasts over on the lake. And all me gold, washed ashore. Where? I don't know."
Completing Pirate Pete's quest is the only way to get the green orb in Telepath RPG 2.