Diversified Energy abandoned a gas-powered crypto mining plant in Pennsylvania, neglecting to seal wells as per a 2021 agreement. The Pennsylvania DEP noted the company failed to secure necessary permits and indicated that Diversified had removed its mining equipment, leading to environmental and legal scrutiny. This case reflects broader pushback against cryptocurrency mining operations in the U.S. amidst increasing concerns over environmental impacts.
Cryptocurrency mining company Diversified Energy has left serious environmental concerns in its wake after abandoning a natural gas-powered mining plant in Elk County, Pennsylvania. The firm initially signed an agreement in 2021 to plug 14 wells, a commitment it has failed to honour, raising eyebrows about its track record on environmental protection.
The Longhorn Pad A facility, which had been dormant for nearly a decade, was put back into operation by Diversified Energy in 2022. Utilizing vast gas reserves, the facility powered generators for bitcoin mining hardware. However, it was reported that the company failed to secure an air quality permit required by the Pennsylvania Department of Environmental Protection (DEP) before starting operations, only obtaining it in December 2023.
In a concerning development, a DEP site visit revealed that Diversified had removed its mining equipment from Longhorn Pad A. The site was found with vacant metal buildings and almost none of the production gear left, prompting the DEP to serve a formal notice of violation regarding the abandonment of wells.
While Diversified Energy claimed it did not abandon the site and intended to resume operations, both the DEP and environmental experts asserted that responsibilities were being neglected. The company had previously agreed to cease operations at Longhorn A and other wells as part of a 2021 settlement, but it appears to be backing away from those promises.
Environmental organisations have voiced pervasive concerns about Diversified Energy’s operational model, which involves acquiring ageing, inefficient wells and squeezing out the remaining production without properly decommissioning them. Pennsylvania hosts over 350,000 orphaned wells, each costing more than $100,000 to properly plug — representing a significant environmental risk.
In another legal arrangement, Diversified has pledged to plug 3,000 wells by 2034, yet local officials in Horton County reported that the company has provided them with no updates.
Across the United States, crypto mining operations are facing increasing scrutiny. Earlier this year, Arkansas state legislators enacted a law forbidding the establishment of crypto mining facilities within 30 miles of military bases. Additionally, last October, Granbury, Texas residents took legal action against Marathon Digital, alleging that its mining operations were causing pollution and noise disruptions in their community. Meanwhile, the controversy around Diversified Energy underscores the growing backlash against crypto mining, particularly in light of environmental sustainability concerns.
