I'm just thinking logically, EC. Skooma is refined moon sugar, essentially what crack is to cocaine. It has to be cheap, by it's definition, especially if it's going to be used by poor people, whichit most certainly is.

There are no Dwemer ruins here, it's almost impossible. Perhaps a khajiiti burial ground? Maybe an abandoned Thalmor fort? This isn't the first time they've had sovereign control of Elsweyr. It could have been ransacked and never rebuilt. To make the encounter more challenging we could make it haunted.