Few people know what the Oregon Environmental Laboratory Accreditation Program is, but it’s about to have a profound effect on the state’s cannabis industry.

On Aug. 26, Gary K. Ward, administrator of the agency, known as ORELAP, sent a memo to industry insiders saying his organization was “on the precipice of collapse.” Come Oct. 1, that collapse could cause a bottleneck that results in empty dispensary shelves as massive amounts of freshly harvested, outdoor-grown flower sits in storage. The fallout of that collapse could even extend to the safety of the drinking water at Oregon schools.

Here’s the situation: Rules adopted by the Oregon Health Authority state that any cannabis products transferred from producers to shops must be tested through newly approved labs verified by ORELAP. As it stands, only two labs have been approved, and there are thousands of growers funneling their product through them.

Oregon Cannabis is Headed for a Tough Month Because of an Obscure Agency and Strict New Rules