A dramatic lawsuit out of northern New Mexico is shedding light on the unique challenges of running a cannabis farm in a state where historic infrastructure meets modern agriculture. Albuquerque Cannabis Corp. (ACC) is suing the state for $442,000, claiming a public employee accidentally destroyed its crop by flooding it with E. coli–tainted water from a centuries-old irrigation canal.
According to the complaint, a supervisor at Los Luceros Historic Site in Rio Arriba County allegedly left the gate of an acequia open during irrigation in August 2023. The resulting flood sent more than 650,000 gallons of water onto ACC’s four-acre property, wiping out 850 plants, greenhouse equipment, and hundreds of pounds of cannabis flower. For any cannabis farm, such an event is catastrophic not only because of lost revenue but also because of the time and investment required to grow a high-input crop.
ACC had leased land next to Los Luceros, a 19th-century hacienda with irrigated pastures open to the public. The acequia at the center of the dispute is among the oldest in the region. While these ditches are part of New Mexico’s cultural heritage, they can also create liability risks when they border a modern cannabis farm.
In court filings, ACC says the flooding lasted “several hours” and ruined plants just as they were entering the flowering stage—the point when a cannabis farm begins to see its investment pay off. Lab testing later confirmed the plants were contaminated with fecal bacteria, rendering them unsafe for sale.
Co-owner Derek Watts told reporters the company couldn’t recover. “Since this happened, the whole project basically fell apart,” he said. This underscores how vulnerable a small cannabis farm can be to outside forces beyond its control.
The property sits less than 500 feet from the acequia. Watts, a self-described history buff, appreciated learning about the historic ditch network but never expected it to ruin his cannabis farm. Although state employees are generally immune from lawsuits, New Mexico law allows exceptions when damage is caused by negligence in operations or maintenance of state facilities—an important legal detail for any cannabis farm located near public infrastructure.
ACC had been licensed by the state Cannabis Control Division in 2022, but the license is no longer active. This case illustrates that even as legalization expands, running a cannabis farm involves navigating not just regulations but also environmental and community risks. For New Mexico and beyond, the lawsuit may become a cautionary tale about protecting every cannabis farm from unexpected disasters tied to aging infrastructure.