The Official Report
In January of 1995 there was an outbreak of some unknown disease, apparently genetic in nature, in Gardoza, NM. The outbreak was first reported by Gardoza physician Dr. Victor Perez, who contacted the Center for Disease Control in Atlanta. Upon the arrival there of CDC researchers Dr. Christopher Fogelberg and Dr. Emily Mills, it was theorized that the disease, which Dr. Mills called "teratosomatosis" (TS), may have been cancerine in nature.
Teratosomatosis caused effects similar in appearance to that of those seen in Joseph Merrick, the famous "Elephant Man." For this reason, the investigation was quickly termed Operation MERRICK. The actual effects included thickening of the dermis by as much as 50% and the appearance of bony tumorous growths. It was theorized to be an unusual hybrid variant of both bone and skin cancer. Also, Dr. Perez had been diagnosed with TS soon after contacting the CDC.
As a result of its suspected cancerine nature, the CDC enlisted the aid of USAMRIID. Two cancer specialists from Ft. Detrick--Dr. Serena McGraw and Lt. Benjamin Maurer--were sent to Gardoza to assist in the investigation. The new joint CDC/USAMRIID investigation determined that TS was not a cancerine ailment, but an apparently communicable one. No vector of communicability was ever determined, at least in an official sense.
The investigative team also was contacted by a Gardoza resident named Pete Durango, who claimed to have information on TS. However, the "information" relayed by Mr. Durango turned out to be a lengthy conspiratorial rant, in which he attempted to convince the agents that the outbreak was the handiwork of an alien race called "Saurians," with which the government is working in a clandestine base underneath Dulce.
The cause and exact nature of teratosomatosis is currently disputed in the medical community. The CDC is currently aware of the possibility that TS may represent a significant health threat should there be an unchecked outbreak of it in a more populated area.
Addenda
Of all the Operation MERRICK investigators, Dr. McGraw was being marked as a potential Delta Green recruit. That night, the doctor had an odd dream in which she found herself in a desert area. From a nearby cave crawled a dragonlike form which identified itself as Clerghh. Upon awakening, the doctor was visibly shaken. Later that evening, Lt. Maurer urged her to visit an elderly Apache living outside of town. Jacob Bullhorn told the doctor a legend among the Apaches that a reptilian race of proto-men called "Ohdowa" lived with their masters in a place he called the "Blue Cave." TS was, according to Bullhorn, the result of Sickness Magic used by the Ohdowa to gather Soul-Power.
When Dr. McGraw mentioned her experiences of the night before, Bullhorn nodded and said that the Ohdowa had contacted her and that she must be constantly on guard, else they would use Sickness Magic and take her Soul-Power. Dr. Mills notified the other two agents of an extraordinary event which had just happened. A bluish mist was seen hovering above the distorted face of Maria Diaz, one of the victims of TS. The superstitious townsfolk thought this was some sort of ghost, but Mr. Bullhorn (who was present, along with Lt. Maurer) proclaimed that it was the spirit of the Ohdowa, and that it had used Sickness Magic to cause TS.
After receiving some sort of authorization from A-Cell, Lt. Maurer ordered Jacob Bullhorn to lead himself and Dr. McGraw to the Blue Cave. Bullhorn complied. At the entrance to Blue Cave, a dragonlike creature which Dr. McGraw recognized as identical to the one seen in her dream was encountered. This creature quickly vanished, and the case remains officially open.
After extensive communication with A-, B-, and C-Cells the "Sand Dragon," as it was known to the two USAMRIID researchers, was identified as a memebr of the astral race known as lloigor. Shortly after MERRICK's conclusion, Dr. McGraw transferred to the CDC.