In the heart of Elk County, Pennsylvania, a crypto mining project fueled by natural gas has ignited a whirlwind of controversy and environmental concerns. The company at the center of this storm, Diversified Energy, is under scrutiny from both authorities and environmentalists for abandoning an operational site without adhering to the necessary well closure obligations, thereby leaving a trail of violations and lingering questions.
The site in question, known as Longhorn Pad A, sat inactive for nearly a decade before Diversified reactivated it in 2022, converting it into a power plant intended to supply energy to its mining generators. This transformation, however, came without a crucial permit for air quality, a glaring oversight that quickly attracted the attention of the Pennsylvania Department of Environmental Protection (DEP).
A Crypto Mining Site Left Unfinished: Environmental Concerns Grow in Pennsylvania
It wasn’t until December 2023 that Diversified was granted the air quality permit it had neglected to secure initially. However, by the time DEP conducted an inspection in March 2025, inspectors discovered that the mining infrastructure had been dismantled. The site was characterized by empty warehouses and a complete absence of operational equipment, prompting the DEP to issue a formal notice of violation for well abandonment.
Despite the site’s derelict state, Diversified has refuted claims of abandonment, asserting that it may resume gas production in the future. Nevertheless, both the DEP and numerous environmental activists argue that the company has failed to meet the contractual obligations outlined in a 2021 agreement, which mandated the plugging of the Longhorn A well along with 13 other wells once their operational life concluded.
The scrutiny faced by Diversified extends well beyond Pennsylvania. Environmental advocates have long questioned the company’s business model, which revolves around acquiring obsolete and low-production wells to tap into their residual value, neglecting necessary plans for closure and remediation. The cost of properly closing just one well can exceed $100,000, and Pennsylvania currently grapples with over 350,000 orphaned and abandoned wells, amplifying the urgency of this issue.
A report published in 2022 described Diversified’s approach as a “model built to fail in Appalachia,” cautioning that, without immediate intervention, taxpayers may have to shoulder the financial burden of closing thousands of open wells. In response to mounting public and institutional pressure, Diversified recently committed to plugging 3,000 wells by 2034 as part of a separate legal agreement, but the company continues to face ongoing regulatory inquiries, including one initiated by the House Energy and Commerce Committee of the United States.
Discontent Is Growing in Other States as Well
In parallel with the controversy in Pennsylvania, local officials in Horton Township, where the Longhorn site resides, express frustration over the lack of communication from Diversified. Local supervisor PJ Piccirillo shared concerns with the Erie Times-News, stating that equipment such as generators and tanks were removed without any notice, leaving residents puzzled about Diversified’s future plans.
“All we know is that the property seems to have been abandoned,”
That commentary reflects the anxiety gripping the local community. The situation in Pennsylvania is not unique; across the nation, cryptocurrency mining operations are facing growing opposition from local communities. For instance, on April 25, the urban planning commission in Vilonia, Arkansas, unanimously rejected a proposal for a new mining facility within city limits, following a robust mobilization of residents against the project.
Additionally, in January, Arkansas legislators introduced a bill seeking to prohibit mining operations within 30 miles of any U.S. military facility, signifying an escalating concern for the environmental and national security implications of crypto mining. In Texas, a group of residents in Granbury filed a lawsuit against Marathon Digital, accusing the mining facility of generating excessive noise pollution.
A Challenge Between Innovation and Responsibility
The plight of Diversified Energy underscores a growing tension between technological advancement and environmental stewardship. As cryptocurrency mining continues to flourish in the U.S., drawn by economic incentives and abundant energy resources, local communities and regulatory bodies are increasingly forced to grapple with the accompanying environmental repercussions and social repercussions of these initiatives.
The story of the Longhorn Pad A site serves as a critical reminder: without effective oversight and stringent regulation, the environmental burden of technological innovation may ultimately fall on the shoulders of citizens and future generations. Against the backdrop of an evolving energy landscape, the situation surrounding Diversified raises vital questions about the future of mining in the United States and the essential need to balance economic growth with environmental conservation.
