This is a tough call. Part of me understands that 17 year old kids want to go to parties and hang out with their friends. I know that when my son comes home from college for a few days ... we don't see him all that much. I think that is within the realm of normal adolescent behavior.
On the other hand I understand your concern about the drugs/drinking. She is still a minor and therefore under your authority.
meowbunny makes a good suggestion. Try to compromise and let her see friends in another venue where drugs will not be present.