Cryptocurrency and the Environment: The Controversial Case of Pennsylvania's Abandoned Mining Site
In the heart of Pennsylvania's Elk County , a natural gas- powered cryptocurrency mining initiative has sparked significant controversy and environmental concerns.
Diversified Energy , the company behind the project, has come under scrutiny from both government and environmental groups for abandoning the facility without fulfilling its obligations to close the gas wells , leading to numerous violations and questions.
The site in question, known as Longhorn Pad A , remained dormant for nearly a decade before Diversified reactivated it in 2022, turning it into a power plant to power its mining generators .
However, work began without an air quality permit , which immediately attracted the attention of the Pennsylvania Department of Environmental Protection (DEP).
Summary
- Cryptocurrency Mining Site Left Unfinished: Environmental Concerns Grow in Pennsylvania
- Discontent is growing in other states as well.
- The Conflict Between Innovation and Responsibility
Cryptocurrency Mining Site Left Unfinished: Environmental Concerns Grow in Pennsylvania
It was not until December 2023 that the company received the necessary permit, but during an inspection in March 2025, the Department of Environmental Protection discovered that the mining infrastructure had already been dismantled .
Empty warehouses and lack of equipment became the basis for the department to issue an official notice of violation in the form of well liquidation .
Despite the current situation, Diversified denies abandoning the project, claiming it may resume gas production in the future.
However, according to the Department of Environmental Protection and numerous environmental activists, the company has failed to meet contractual obligations outlined in a 2021 agreement that required it to mothball Longhorn A and 13 other wells after they were completed.
Criticism of Diversified isn't limited to Pennsylvania.
Environmentalists have long questioned the company's business model, which focuses on acquiring aging and unproductive wells to extract their residual value without offering adequate plans for closure and reclamation .
Properly removing a single well can cost over $100,000 , and Pennsylvania already has over 350,000 abandoned and neglected wells , making this a particularly pressing issue.
A 2022 report described Diversified's approach as ” a model doomed to fail in Appalachia ,” noting that without intervention , taxpayers could be forced to foot the bill for shutting down thousands of remaining wells.
Under growing pressure from the public and government, Diversified recently agreed to shut in 3,000 wells by 2034 under a separate legal agreement .
However, the company continues to be the subject of regulatory investigations , including one initiated by the U.S. House of Representatives Committee on Energy and Commerce .
Discontent is growing in other states as well.
Meanwhile, local officials in Horton , where Longhorn's facility is located, are complaining about a lack of communication from the company.
Local Supervisor PJ Piccirillo told the Erie Times-News that the generators and tanks were removed without any notice , leaving the community in the dark about Diversified's future intentions.
“All we know is that the property appears to be abandoned,”
noted Piccirillo.
Pennsylvania's situation is not unique. Cryptocurrency mining operations across the country are facing growing resistance from local communities .
For example, on April 25, the Vilonia, Arkansas, city planning commission unanimously rejected a proposal to build a new mining plant within the city limits. This happened after a strong mobilization of local residents.
In January, also in Arkansas, lawmakers introduced a bill that would ban mining within 30 miles of any U.S. military installation .
This reflects growing concerns about the environmental and security implications for the country.
Also in Texas , in October 2024, a group of Granbury residents filed a lawsuit against Marathon Digital , accusing mining
Source: cryptonews.net
