Enforcement Bureau Issues Embargo and Administrative Hold on Navajo Obsidian LLC
A New Mexico producer operating as Navajo Obsidian LLC in Fruitland has been placed under an embargo order by the New Mexico CCD following an investigation that uncovered thousands of untracked plants and large quantities of untracked plant material.
According to Enforcement Bureau documents, inspectors first visited the facility on March 25, 2026, during an annual compliance inspection that ultimately resulted in a failed inspection report. The following day, enforcement agents returned to investigate reports of untagged plants and suspected illicit inventory.
Investigators reported finding approximately 18 hoop houses on the property, with an estimated 4,500 plants lacking required BioTrack identification tags. They also discovered roughly 40 trash bags of trim, estimated at about 20 pounds each, stored in a shipping container without track-and-trace documentation. Enforcement officials stated that neither the plants nor the trim could be linked to BioTrack records at the time of inspection.
The facility is licensed as a producer under Navajo Obsidian LLC, with Nan Tang listed as the controlling person. State records indicate the operation received its producer license in July 2025 and was conducting what inspectors described as its first harvest cycle.
Beyond the tracking violations, inspectors documented several additional compliance concerns. The facility was cited for lacking an accurate cultivation plan, missing surveillance coverage in portions of the operation, inadequate housekeeping and waste disposal practices, and maintaining diesel storage containers in close proximity to plants. Inspectors also noted that plant counts and cultivation areas were not properly reflected in the state’s track-and-trace system.
Interestingly, the inspection report verified that the operation remained within its allotted mature plant count of 4,000 plants. However, inspectors determined that inventory tracking procedures had not been properly followed, resulting in significant discrepancies between physical inventory and BioTrack records.
As a result of the findings, the Enforcement Bureau recommended an embargo under New Mexico law, which allows regulators to restrict movement of products reasonably suspected of being illegal, adulterated, or otherwise noncompliant. The embargo is intended to prevent movement of the affected inventory while CCD and Enforcement Bureau staff determine appropriate corrective actions, including potential destruction of untracked material.
Investigators also noted that portions of the inquiry were further complicated by a language barrier, as the licensees are Mandarin-speaking nationals. Requiring a translator for CCD to reconcile inventory records and gather information during the inspection process.
