My belief in the matter is that a Balrog as a mere Fire Spirit was of a much lower order of Maia than Sauron, but could act independently and probably perferred to do so.
But again, we must think in terms of Evil that is there, but not strictly at Sauron's behest. Power in any guise can often be only unleashed, not controlled.
I suspect that Sauron guessed the nature of Durin's Bane better than anyone. Doubtless, Gandalf and Galadriel were not greatly astonished that it was there.
For Gandalf to have killed it was fortuitous in the same way as the slaying of Smaug by Bard, or the diminishiment of the Orcs, Goblins & Hobgoblins of the North (recognizing those terms to be mostly redundant) in the War of the Dwarves and Orcs and the Battle of the Five Armies.
Were it not for these developments, such forces certainly would have arisen during the War of the Ring. They would not have been cleanly organized; Smaug would have probably gone where he would, but there certainly wouldn't have been any reason to send an Easterling Army that direction.
One reason why his forces at Dol Guldor were handedly countered by the Elves and Men to the North and West of Dol Guldor, was that Sauron had likely been at least betting that the Balrog would issue forth and wreak havoc on the Westside of Lothlorien. As it were Sauron's forces were too thin to be victorious. (I doubt the Balrog could have travelled to Imladris)
As it is, we don't hear much about the Orcs of the Mountains being too effective, beyond harassing the Men of the Vales of Anduin in Frodo's vision from Amon Hen, but persumably that wasn't so bad, and the Beornings and other such Men were eventually able to come to the aid of Thranduil and the Woodmen.
Also, I like to think that the Dunedain of the North, who did not ride with the Grey Company, as well as the Elves of Rivendell, were not idle, and that they went on higher alert status and thereby helped keep the Orcs & Trolls of the northwestern Wilderland under wraps.
Really, except for his outrageously massive forces in Mordor and the seige at Erebor, Sauron didn't have much going for him at that point. The Balrog, which probably did not want to really serve under Sauron directly, not to mention Smaug and much larger contingencies of Orcs in the North, could have tipped those scales decisively.
[ November 26, 2002: Message edited by: Man-of-the-Wold ]
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The hoes unrecked in the fields were flung, __ and fallen ladders in the long grass lay __ of the lush orchards; every tree there turned __ its tangled head and eyed them secretly, __ and the ears listened of the nodding grasses; __ though noontide glowed on land and leaf, __ their limbs were chilled.
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