Yeah, it has a trigger event near the hill that causes a 10 second timer. After the 10 second countdown ends, the gun shot sound is triggered and restarts the level. I have been looking for a sound clip, or need to create my own which gives the player a warning. Thanks for reminding me.
You take the compass and note which then allows you to progress further. The instructions do tell you that the F key is interact. Use that to open it.