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The spell opened a tiny gate to the Elemental Plane of Fire and summoned forth a fire, as large as would appear on a lit torch. It was a perfectly natural flame, but as its origins were on an elemental plane, it burned continuously, without need of fuel or air. It would burn even underwater or when covered over with earth. It never went out and could only be extinguished with a dispel magic or stronger spell. It would of course burn anything flammable
The spell had to be cast upon on an object, typically of stone or metal or something else nonflammable. It could be even mounted on a magical construct, provided it wasn't inflammable, but never on any other creature.
An everlasting fire could potentially be used to make an always-burning fire, like a continual flame was used to make an everburning torch, though with the added benefit—and hazard—of generating heat and being able to burn other items. Some form of insulation or magical fire protection would be required, such as Daltim's own proof against fire.
In addition to the usual verbal and somatic components, the spell required a piece of wood soaked in lamp oil. This was destroyed in the casting.
The spell was developed by the Halruaan mage Daltim Flamefist sometime in the mid-14th century DR. He included it in his spellbook Daltim's Tome of Fire, which he lost in Tethyr in the 1360s DR. It remained a unique spell at the time.