Cryptocurrency and the Environment: The Controversial Case of Pennsylvania's Abandoned Mining Site

In the heart of Elk County , Pennsylvania, a natural gas- powered cryptocurrency mining initiative has generated considerable controversy and concerns about its environmental impact.

Diversified Energy , the company behind the project, has drawn attention from both government and environmental groups for abandoning the facility without completing its obligations to shut in gas wells , leaving numerous violations and unanswered questions.

The site, known as Longhorn Pad A , remained inactive for nearly a decade before Diversified reactivated it in 2022, converting it into a power plant to power its mining generators .

However, operation began without an air quality permit , which immediately drew 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 permits, but during an inspection in March 2025, the Department of Environmental Protection found that the mining infrastructure had already been dismantled .

Empty warehouses and lack of equipment resulted in the department receiving an official notice of violation in the form of well liquidation .

Despite the obvious facts, Diversified denies claims that the project is being abandoned, claiming that it may resume gas production in the future.

However, as the Department of Environmental Protection and numerous environmental activists point out, the company has failed to meet its contractual obligations under a 2021 agreement that required it to mothball Longhorn A and 13 other wells upon completion of their operations.

Criticism of Diversified is not limited to Pennsylvania.

Environmentalists have long questioned the company's business model, which focuses on acquiring aging and low-productivity wells to extract their residual value without providing adequate plans for closure and reclamation .

Completely shutting down a single well can cost more than $100,000 , and Pennsylvania already has more than 350,000 abandoned and stranded 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 may have to foot the bill for shutting down thousands of remaining wells.

Under growing public and institutional pressure, Diversified recently agreed to shut in 3,000 wells by 2034 under a separate legal agreement .

However, the company remains 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 expressing frustration with the company's lack of communication .

Local Supervisor PJ Piccirillo told the Erie Times-News that the generators and tanks were removed without prior 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 isolated. Cryptocurrency mining operations across the country are facing increasing resistance from local communities .

For example, on April 25, the Vilonia, Arkansas, city planning commission unanimously rejected a proposal to build a new mining facility within the city limits. The decision came after a strong mobilization of local residents.

In January, also in Arkansas, lawmakers proposed a bill that would ban mining within 30 miles of any U.S. military installation .

This highlights growing concerns about the impact on the environment and national security.

Also in Texas , in October 2024, a group of Granbury residents filed a lawsuit against Marathon Digital

Source: cryptonews.net