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Firefighters were called to a house fire in the 2000 block of Chestnut Avenue just before 7 p.m., according to Carlsbad police. When firefighters arrived, residents were in the process of putting out the flames.

Police confirmed to 10News that a hazardous materials team was summoned to the scene, as some neighbors said they could smell a foul odor coming through the home's front door.

"I thought it was maybe just something burning in the backyard," neighbor Ariel Howard said. "Except it didn't smell like plants though; it smelled like a chemical, like when plastic burns or something."

Carlsbad police said: "Officers and firefighters noticed items commonly used to extract concentrated cannabis through the use of flammable solvents near the source of the fire. The product achieved through this type of solvent extraction process is often referred to as butane honey oil. Detectives assumed the investigation and found finished concentrated cannabis, over 50 marijuana plants, psilocybin mushrooms, a short-barreled shotgun and additional items used in the production of concentrated cannabis through solvent extraction."

Police arrested the home's residents 56-year-old Peter McDonald and 51-year-old David Silva.

According to police, Silva was arrested on suspicion of manufacturing a controlled substance and possession of a short-barreled shotgun. McDonald was arrested on suspicion of manufacturing a controlled substance, possession of a controlled substance for sale and causing a structure fire.

No injuries were reported in the fire.