Dear Queen: Unfortunately I have been in a very similar circumstance with my D. Her child was placed in protective custody through CPS with me. I don't know about your state, but our really push for "reunification" with the parent. They generally have a 6 month tolerance for the parent to get their act together and if they don't the child becomes a ward of the state and placed for adoption. I begged and pleaded with the judge and CPS to extend the 6 months and before I knew it, we were going on two years. The day of the reunification hearing, my D tested positive for cocaine. She was shocked when I said to the judge, take my grandchild and place him for adoption. I am finished. I made a plea and recommendation that the child go live with his great grandparent and my D kept doing the same stuff! When she finally appeared to be getting her life together, became engaged, pregnant, he died of an overdose. It took 3 years before she got her act together and was reunited with her child and is now happily married with two children. You could request (behind your D's back) that they surprise drug test her on the spot in the courtroom. I don't know about the hollowed out pens being used for crack. She may be snorting benzos with it. Be very very very careful because your D sons spiteful. She could (and this did happen to me also) make up an incredible story about you to CPS and poof - the kids will be gone! If your D has a crack an active crack addition, tell CPS this. Does your D see a psychiatrist or psychologist? One can write a prescription, the other can not.
Bottom line is you will have to eventually ask yourself if you are prepared to raise your grandchildren to adulthood? Is your spouse prepared to as well? It sounds okay in theory, but the reality is that it seems highly probable that the children may be placed with you permanently and the case will be closed. Discuss it with your spouse and maybe a third party mediator.