I don't believe the watcher in the water was created by Melkor either, but I don't have any quotes right now to support that.
Also, technically, Melkor did not create balrogs. Balrogs were the incarnate form of lesser ainur that were swayed into Melkor's power, if I'm not mistaken.
Edit: I don't think Shelob dies in LoTR. Not by Sam's hand, at any rate.
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I prepared Explosive Runes this morning.
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