Pueblo County board approves stipulation, renewal for Oil Well Industries after recurring camera failures

The Pueblo County Liquor and Marijuana Licensing Board on June 9 approved a stipulation imposing fines and strict conditions on Oil Well Industries LLC, owner of a retail marijuana cultivation license at 157 East Industrial Boulevard in Pueblo West, and then unanimously approved the company's license renewal.

The stipulation, presented by Peter Blood of the county's marijuana enforcement office, addresses repeated DVR and camera-system violations at the facility. Blood said the pattern stems less from “bad actors” than from unreliable equipment and insufficient investment in durable systems. He told the board that the agreement carries a $5,000 penalty now and a $15,000 penalty if the facility fails its next inspection.

The stipulation also requires that any future sale or transfer of the business include a reference to the stipulation in the transfer approval, to prevent a buyer from inheriting a “clean slate” while avoiding obligations tied to past violations. “So I think this is fair to both sides,” Blood told the board.

Salar Dominski, who identified himself as a representative of the licensee, told the board the company and its counsel had worked with enforcement and that the terms were reasonable under the circumstances: “I think everything, that we've kinda landed on is fair and appropriate given the circumstances of our current situation.” Dominski also said the manager now oversees monthly checks with the security-camera provider to ensure functionality.

After hearing questions from board members about the security steps and an explicit reminder that a subsequent failure would trigger the $15,000 fine, the board voted to approve the stipulation. Motion to approve the stipulation was made and seconded by board members and passed unanimously.

Following the stipulation vote, the board considered and approved a renewal of the same cultivation license. Staff recommended renewal after the stipulation was agreed; the board voted unanimously to renew the license.

The board did not adopt additional conditions beyond the stipulation and the standard enforcement inspection requirement. The county staff said the licensee’s renewal would be reflected in the online portal when completed and that marijuana licenses will no longer be mailed.

The board's actions close the immediate enforcement episode for Oil Well Industries but place the business on notice that further camera-system failures will carry substantially higher penalties.