Crypto and environment: the controversial case of the abandoned mining site in Pennsylvania

In the heart of contea di Elk, in Pennsylvania, a mining crypto project powered by natural gas has stirred up a storm of controversy and environmental concerns.

The company involved, Diversified Energy, has come under scrutiny from the authorities and environmentalists for having abandoned an operational site without fulfilling the obligations of well closure for gas, leaving behind a trail of violations and questions.

The site in question, called Longhorn Pad A, had remained inactive for almost ten years before being reactivated in 2022 by Diversified, which transformed it into a power plant to supply its mining generators.

However, the operation started without a permit for air quality, a lack that immediately caught the attention of the Pennsylvania Department of Environmental Protection (DEP).

Summary

• A crypto mining site left unfinished: environmental concern grows in Pennsylvania
• Discontent is growing in other states as well
• A challenge between innovation and responsibility

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

Only in December 2023 did the company obtain the necessary permit, but at the time of an inspection in March 2025, the DEP discovered that the mining infrastructure had already been removed.

The empty warehouses and the absence of equipment led the department to issue a formal notice of violation for well abandonment.

Despite appearances, Diversified has denied abandoning the site, claiming that it might resume gas production in the future.

However, according to the DEP and numerous environmental activists, the company has not fulfilled the contractual obligations outlined in a 2021 agreement, which required it to plug the Longhorn A well and 13 other wells once their operational life ended.

The criticisms of Diversified are not limited to the case of Pennsylvania.

For a long time, environmentalists have been questioning the company’s business model, which is based on acquiring obsolete and low-production wells to extract their residual value, without, however, providing adequate plans for closure and remediation.

Properly closing a single well can cost over $100,000, and Pennsylvania is already dealing with over 350,000 orphaned and abandoned wells, a figure that makes 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 left open.

Under the growing public and institutional pressure, Diversified recently agreed to plug 3,000 wells by 2034, as part of a separate legal agreement.

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.

Discontent is growing in other states as well

In the meantime, the local authorities of Horton Township, where the Longhorn site is located, complain about the lack of communication from the company.

The local supervisor, PJ Piccirillo, stated to the Erie Times-News that generators and tanks were removed without any notice. Thus leaving the community in the dark about Diversified’s future intentions.

“All we know is that the property seems to have been abandoned”,

stated Piccirillo.

The case of Pennsylvania is not isolated. Across the country, cryptocurrency mining operations are facing increasing opposition from local communities.

On April 25, for example, the urban planning commission of Vilonia, in Arkansas, unanimously rejected a proposal for the construction of a new mining facility within the city limits. All this followed a strong mobilization of the residents.

In January, also in Arkansas, legislators introduced a bill that would prohibit mining operations within 30 miles of any U.S. military facility.

Indicating therefore a growing alarm for the environmental and national security implications.

Also in Texas, in October 2024, a group of residents from Granbury filed a lawsuit against Marathon Digital. Specifically accusing the mining facility of excessive noise pollution.

A challenge between innovation and responsibility

The case of Diversified Energy highlights the growing tensions 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 often find themselves having to manage the environmental consequences and social aspects of these activities.

The story of the Longhorn Pad A site 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.

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