At night in the forest, Shale will go in the second screen (South? It's the first intersection that you come across when entering the forest from the town.) You'll find Shale relieving himself by the wall, just have Calen approach him.
Just an extra note, if you already saw Shale taking a leak before this latest update, you'll need to start a new game to "unlock" it properly. Thankfully though, you can speedrun straight to it in minutes.
