Cryptocurrency miner Diversified Power quietly vacated a pure gas-powered crypto mining website in Elk County, Pennsylvania, reportedly abandoning unplugged wells and regulatory violations.
The location, referred to as Longhorn Pad A, was revived in 2022 after sitting dormant for almost a decade when Diversified started utilizing it to gasoline on-site turbines powering cryptocurrency mining computer systems, in response to a report by the Erie Occasions-Information.
Per the report, the operation was launched with out acquiring an air high quality allow from the Pennsylvania Division of Environmental Safety (DEP).
Although the corporate was later granted the allow in December 2023, a March 2025 inspection revealed that Diversified had already eliminated the mining infrastructure.
Empty metallic sheds and lacking manufacturing gear led the DEP to challenge a proper violation discover for nicely abandonment. Diversified reportedly denied that the positioning was deserted, saying that it might resume fuel manufacturing.
Nonetheless, the DEP and environmental advocates say the corporate has failed to satisfy its obligations. Below a 2021 settlement, Diversified had dedicated to plugging Longhorn A and 13 different wells on the finish of their operational life, an obligation it has reportedly not fulfilled.
Cointelegraph has reached out to Diversified for remark.
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Diversified beneath scrutiny over enterprise mannequin
Environmentalists have lengthy raised issues about Diversified’s enterprise mannequin, which includes buying getting old, low-producing wells and extracting remaining worth with out adequate plans for decommissioning.
Plugging a single nicely can price over $100,000, and Pennsylvania already has over 350,000 orphaned and deserted wells, making the stakes significantly excessive.
A 2022 report labeled the corporate’s method a “enterprise mannequin constructed to fail Appalachia,” warning that taxpayers could possibly be left footing the invoice for hundreds of unplugged wells.
Diversified just lately agreed to plug 3,000 wells by 2034 in a separate authorized settlement however continues to face regulatory scrutiny, together with a probe by the US Home Committee on Power and Commerce.
Horton Township officers, the place the Longhorn website is situated, say they’ve acquired no updates from the corporate.
Native supervisor PJ Piccirillo instructed the Erie Occasions-Information that turbines and tanks have been eliminated with out discover. “All we all know is that the property appears to have been deserted,” he stated.
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US cities confront crypto mining
On April 25, the planning fee of Vilonia, Arkansas, unanimously rejected a proposal to ascertain a cryptocurrency mining facility inside the metropolis limits, following opposition from residents.
In January, Arkansas lawmakers launched a invoice that will ban crypto mining operations inside 30 miles of any US navy facility within the state.
The opposition to crypto miners in Arkansas follows a broader development throughout US municipalities the place crypto-mining initiatives have confronted rising scrutiny.
In October 2024, a gaggle of residents in Granbury, Texas, filed a lawsuit towards Marathon Digital, alleging that its mining facility generated an excessive amount of noise.
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