A man has been charged after he was allegedly discovered in possession of cash - believed to be the proceeds of crime - and drugs while changing a tyre north of Lemon Tree Passage.
Rick Barry Watson, 20, faced Newcastle Local Court on Tuesday after being charged with supply of an indictable quantity of a prohibited drug and dealing with the proceeds of crime.
It came after Port Stephens-Hunter police were patrolling Oyster Cove on Monday afternoon following reports of a utility being driven dangerously in the area.
Police found a grey Holden ute on the side of Oyster Cove Road about 2.45pm, where Mr Watson and a 25-year-old man were changing a tyre.
Officers searched the vehicle and allegedly found methylamphetamine and more than $2000 cash - police said some of the bank notes were melted together.
Mr Watson was taken to Nelson Bay Police Station and charged over the cash and drugs.
The Lemon Tree Passage man was also charged with breaching bail in relation to previous drug and driving charges.
Mr Watson did not enter any pleas in court on Tuesday and he was granted conditional bail.
He will face Raymond Terrace Local Court on January 11.