The Council of Wyrms is a loose knit grouping of the various dragons and their resident communities throughout the mountain ranges known to humanity as the Cloud Spires.
Metallics, chromatics and other entities are considered part of the 'structure'. Power is maintained through a mix of soft and hard influences, with challenges of authority issued on a sliding scale based on the issue in question.
The challenges match the issue in scope and mood, such that arguments may be settled by sporting events or all out war depending on the participants and their goal.
A simple guideline may be that matters of treasure do not typically involve bloodshed while land disputes or personal slights nearly always do.
The Cloud Spires Pact
For the most part, the agreement between the kingdom and the dragons can be summed up as, "You do you. Don't shit in our backyard."
The council and kingdom had come to a defensive agreement that saw humanity protected from the Frost Fire giants, long before the drow had allied with them.
When the dwarves attacked, the giants were forced underground and the dragons lost Ormarr dre Shun, the gold dragon.