State destroys 170K pounds of cannabis outside Shiprock; charges are 'forthcoming'

About 85 tons of marijuana was destroyed at a cannabis farm outside Shiprock last month and now, the company plans to sue, the Associated Press reports.

On Oct. 16, the state’s Organized Crime Commission and New Mexico State Police destroyed the marijuana, State Police spokesperson Wilson Silver said.

Police said that in June, the Cannabis Control Division conducted a compliance check into NNK Equity in Waterflow — which is about 12 miles east of Shiprock — when it was determined it had “exceeded its allotted plant count.” Then, a second complaint was received regarding a large grow at another Waterflow location.

Silver said the Cannabis Control Division began the process of revoking the business license due to various violations. According to the AP, the company was accused of not posting its licenses on site, failing to obtain water rights for cultivation, not having cameras that could monitor certain areas of its operation and violating sanitation and health requirements.

In August, an order of noncompliance was issued, revoking NNK Equity’s license, police said.

Silver said, on Sept. 30, a temporary restraining order was granted, which “advised NNK to cease all cannabis production on both properties and gave law enforcement the authority to destroy all cannabis at the properties.”

He said the case file will be forwarded to the 11th Judicial District Attorney’s Office, where charges will be “forthcoming.”

The AP reports that Jacob Candelaria, an Albuquerque attorney who represents NNK Equity, disputed the state’s claims and accused regulators and state police of violating his client’s civil rights. He said the state failed to properly serve notice of its intent to revoke the company’s license and subsequently denied a request for a hearing on the merits of the case.

“The organization involved showed a blatant disregard for the laws of this state and we will prove that once this investigation is over,” State Police Chief Troy Weisler said in a statement. “We will continue to work with our partners to ensure those who undermine the legal cannabis market will face the full consequences of the law.”

“Illegal operators endanger the people in our state and compromise our legal cannabis industry,” said Clay Bailey, Regulation and Licensing Department superintendent. “This multiagency joint effort shows that the state of New Mexico is committed to combating this type of illegal activity.”

The development comes as the CCD has seen an increase in illicit activity within New Mexico’s budding cannabis industry.

The Journal recently reported that Bailey’s team plans to request funds from the Legislature during its next session to add law enforcement capabilities for the CCD and an additional 10 compliance officers to help increase the number of inspections at marijuana businesses across the state.

According to AP, Candelaria said the company plans to ask a state district judge to set aside the order revoking the license and to order state regulators to hold a hearing. He added that NNK Equity also plans to sue the state for destroying what he said amounted to hundreds of thousands of dollars of private property.

The Associated Press contributed to this report.