Cryptocurrency miner Diversified Energy has quietly vacated a natural gas-powered crypto mining site in Elk County, Pennsylvania, reportedly leaving behind unplugged wells and regulatory violations.
The site, known as Longhorn Pad A, was revived in 2022 after sitting dormant for nearly a decade when Diversified began using it to fuel on-site generators powering cryptocurrency mining computers, according to a report by the Erie Times-News.
Per the report, the operation was launched without obtaining an air quality permit from the Pennsylvania Department of Environmental Protection (DEP).
Though the company was later granted the permit in December 2023, a March 2025 inspection revealed that Diversified had already removed the mining infrastructure.
Empty metallic sheds and missing production equipment led the DEP to issue a formal violation notice for well abandonment. Diversified reportedly denied that the site was abandoned, stating it may resume gas production.
However, the DEP and environmental advocates say the company has failed to meet its obligations. Under a 2021 agreement, Diversified had committed to plugging Longhorn A and 13 other wells at the end of their operational life, an obligation it has reportedly not fulfilled.
Cointelegraph has reached out to Diversified for comment.
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Diversified under scrutiny over business model
Environmentalists have long raised concerns about Diversified’s business model, which involves acquiring aging, low-producing wells and extracting remaining value without sufficient plans for decommissioning.
Plugging a single well can cost over $100,000, and Pennsylvania already has over 350,000 orphaned and abandoned wells, making the stakes particularly high.
A 2022 report labeled the company’s approach a “business model built to fail Appalachia,” warning that taxpayers could be left footing the bill for thousands of unplugged wells.
Diversified recently agreed to plug 3,000 wells by 2034 in a separate legal settlement but continues to face regulatory scrutiny, including a probe by the US House Committee on Energy and Commerce.
Horton Township officials, where the Longhorn site is located, say they’ve received no updates from the company.
Local supervisor PJ Piccirillo told the Erie Times-News that generators and tanks were removed without notice. “All we know is that the property seems to have been abandoned,” he said.
Related: Bitcoin mining — Institutions boost investments amid favorable US climate
US cities confront crypto mining
On April 25, the planning commission of Vilonia, Arkansas, unanimously rejected a proposal to establish a cryptocurrency mining facility within the city limits, following strong opposition from residents.
In January, Arkansas lawmakers introduced a bill that would ban crypto mining operations within 30 miles of any US military facility in the state.
The opposition to crypto-mining centers in Arkansas follows a broader trend across various US municipalities where crypto-mining initiatives have faced increasing scrutiny.
In October 2024, a group of residents in Granbury, Texas, filed a lawsuit against Marathon Digital, alleging that its mining facility generated too much noise.
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