A crypto mining site left unfinished: environmental concern grows in Pennsylvania

In the heart of Elk County, Pennsylvania, a scene unfolds that has local officials fuming and environmentalists rolling their eyes. It's the story of a natural gas-fueled crypto mining project that went awl screwy.

The company at the center of it all is Diversified Energy, which has been hit with a slew of legal woes and accusations from both environmentalists and the state over its abandonment of an operating site without completing the required well closure obligations.

The project in question, Longhorn Pad A, had been idle for nearly a decade before Diversified reactivated it in 2022 to serve as a power plant for its mining generators. However, the operation began without a permit for air quality, a shortcoming that quickly drew the attention of the Pennsylvania Department of Environmental Protection (DEP).

A crypto mining site left unfinished: environmental concern grows in Pennsylvania

The company finally secured the permit in December 2023, but when the DEP inspected the site in March 2025, it discovered that the mining infrastructure had been dismantled and removed. Only the empty warehouses and absence of equipment led the department to issue a formal notice of violation for well abandonment.

Despite appearances, Diversified maintains that it did not abandon the site and might resume gas production from the Longhorn A well in the future. However, according to the DEP and several environmental activists, the company has yet to fulfill the contractual obligations stipulated in a 2021 agreement, which required Diversified to plug the Longhorn A well and 13 other wells once their operational life ended.

Specifically, the company was supposed to decommission the wells and pipelines, remediate the land, and restore the site to its original condition. However, according to a report by the environmental non-profit Vivid Economics, Diversified's actions fell short of the commitments it had made.

The criticisms of Diversified's actions and plans are not limited to the U.S.

For some time now, environmentalists have been raising concerns about Diversified's business model, which focuses on acquiring older, low-producing wells from other operators and aiming to extract their residual value. However, according to Vivid Economics, Diversified's proposals for closure and remediation do not appear to be sufficient.

Properly closing a single well can cost over $100,000, and Pennsylvania is already dealing with a backlog of over 350,000 orphaned and abandoned wells, making the issue particularly urgent. A 2022 report described Diversified's approach as a "model built to fail in Appalachia." It specifically warned that, without intervention, taxpayers might have to bear the costs for closing thousands of wells that are left open.

But there's a glimmer of hope. Faced with growing public and institutional pressure, Diversified recently agreed to plug 3,000 wells by 2034 as part of a separate legal agreement to settle a shareholder lawsuit.

However, the company continues to be the subject of regulatory investigations, including an inquiry initiated by the House Energy and Commerce Committee of the United States. The aim of the investigation is to assess the role of private equity firms in investing in oil and gas companies that are struggling financially and might not have the resources to complete well closure activities.

The case of Pennsylvania is not isolated. Across the country, cryptocurrency mining operations are facing increasing opposition from local communities due to concerns about noise, dust, and light pollution, as well as the environmental footprint of these energy-intensive activities.

On April 25, for example, the urban planning commission of Vilonia, Arkansas, unanimously rejected a proposal for the construction of a new mining facility within the city limits following a strong mobilization of residents who packed the meeting to voice their concerns.

In January, Arkansas legislators introduced a bill that would prohibit mining operations within 30 miles of any U.S. military facility, signaling a growing alarm for the environmental and national security implications of these activities.

In Texas, a group of residents from Granbury filed a lawsuit in October 2024 against Marathon Digital, a cryptocurrency mining company, accusing the mining facility of excessive noise pollution that disrupts the quiet enjoyment of their property.

The case highlights the increasing tension between technological innovation and environmental responsibility. While cryptocurrency mining continues to expand in the United States, attracted by economic incentives and abundant energy resources, local communities and authorities are having to manage the environmental and social consequences of these activities.

The story of the Longhorn Pad A site in Elk County represents a wake-up call. Without effective regulation and strict controls, the risk is that the environmental costs of technological progress will fall on the shoulders of citizens and future generations.

In a context where the energy transition is increasingly central, the Diversified case raises crucial questions about the future of mining in the United States and the need for a balance between economic development and environmental protection.