Clay City Police Chief Terry Skaggs was on patrol in the area of the Howesville Farm Supply, 1390 W. S.R. 246, shortly after midnight when he discovered a hose hanging out of one of the anhydrous tanks.
While securing the tank, Skaggs saw a suspicious vehicle traveling past the business extremely slow and decided to follow it as it turned onto S.R. 59.
During the stop, officers discovered a rolling meth lab inside the vehicle. Members of a lab team from the Indiana State Police were called to clean up the hazardous material created by the lab.
Further details are sketchy due to the ongoing investigation, but Skaggs confirmed that Steve Ray Kearschner, 36, and Scott Allen Terrell, 35, were taken into custody and transferred to the Clay County Justice Center.
Kearschner, the driver of the vehicle, was booked on preliminary charges of manufacturing methamphetamine, possession of precursor, possession of anhydrous and driving while suspended.
Terrell, the passenger, was preliminarily charged with manufacturing methamphetamine, possession of precursor, possession of anhydrous, possession of marijuana/hashish, possession of paraphernalia and possession of methamphetamine.
The two men remain in jail without bond awaiting arraignment.
Sgt. Jeff Maynard and Deputy Jerry Siddons of the Clay County Sheriff's Department assisted with the arrest.