SAN LUIS OBISPO, Calif. -

"I never noticed any unusual activity," said Natalia Wellman, a neighbor on Farrier Court in San Luis Obispo. "The house is always very closed up."

Wellman is talking about a house on her street that was searched via warrant by the San Luis Obispo Sheriff's Department on Wednesday. The Sheriff's Department discovered this 110 pounds of marijuana in all, along with cash, guns and ammo.

"I was a little bit shocked because this town is just so quiet and sleepy and something like that on my street, across the street from my house was quite shocking and scary," said Wellman.

80 pounds of the marijuana was being used in a process that makes hash oil, an oil with high concentration of THC. We spoke with an undercover narcotics officer with the Sheriff's Department who wanted his identity protected, and he said the production of hash oil is a simple and easy process.

"I would say, truthfully, it's an epidemic right now," he said. "They use in almost all cases what's called 'shake marijuana'. It's marijuana from the plants other than the bud itself."

The use of butane gas in production can make it extremely dangerous.

"It's colorless, odorless, and if it happens to find an ignition source while it's travelling along the floor or walls, there's going to be a major explosion," he said.

One arrest was made in the Sheriff's search through that house. The investigation is ongoing and they believe additional arrests will be made.