Diversified Energy Abandons Mining Site
Diversified Energy, a cryptocurrency mining enterprise, has abandoned its site in Elk County, Pennsylvania, raising alarm due to the presence of unplugged natural gas wells and multiple regulatory infractions. The location, referred to as Longhorn Pad A, was brought back into operation in 2022 after lying dormant for nearly a decade, specifically for powering cryptocurrency mining activities.
Regulatory Issues and Environmental Concerns
Notably, this operation began without securing an air quality permit from the Pennsylvania Department of Environmental Protection (DEP). Although the necessary permit was ultimately issued in December 2023, inspections conducted in March 2025 revealed that the mining setup had already been dismantled.
Following this, the DEP formally accused Diversified of improperly abandoning the wells, to which the company responded by denying any abandonment and hinting at a possible return to gas production.
Nevertheless, the DEP, along with several environmental advocates, asserts that Diversified has failed to uphold its commitments regarding site management. Under an agreement established in 2021, the company pledged to properly seal Longhorn A as well as 13 additional wells once their operational life concluded—a promise they have reportedly not fulfilled.
Criticism of Business Practices
Concerns over Diversified’s strategic operations have been voiced by environmentalists, who criticize the firm’s practice of acquiring aging and low-yield wells for extraction, lamenting the lack of responsible decommissioning strategies. The cost to plug a single well can surpass $100,000, and with Pennsylvania overburdened by more than 350,000 abandoned and orphaned wells, the potential environmental fallout is significant.
A 2022 assessment condemned the company’s practices as a “business model designed to fail Appalachia,” anticipating that taxpayers could ultimately shoulder the financial burden associated with these neglected wells.
In a separate legal settlement, Diversified has agreed to close 3,000 wells by 2034 but still finds itself under regulatory investigation, including a probe initiated by the US House Committee on Energy and Commerce.
Community Response and Broader Trends
Officials in Horton Township, where Longhorn Pad A is situated, have reported no communication from the company regarding the situation. Local supervisor PJ Piccirillo shared concerns, stating that the property’s equipment was removed abruptly, leading to a consensus that it appears to have been left behind.
This incident unfolds against a backdrop of increasing scrutiny towards cryptocurrency mining across the United States. For instance, on April 25, the planning commission in Vilonia, Arkansas, unanimously rejected plans for a cryptocurrency mining facility amid significant public disapproval. Additionally, in January, state legislators in Arkansas proposed a bill to prohibit crypto mining activities within a 30-mile radius of military installations, underscoring a growing trend of resistance against such operations in various municipalities, including a recent lawsuit filed by residents of Granbury, Texas, against Marathon Digital, citing noise disturbances from its mining facility.
