Pennsylvania is currently grappling with the environmental fallout from cryptocurrency mining operations, particularly concerning the practices of energy companies. A recent case highlights these challenges, involving allegations of improper site abandonment and regulatory non-compliance affecting a specific operator in the state.
Allegations Against Diversified Energy
Reports indicate that Diversified Energy, a U.S.-based energy firm, has come under fire for its activities at the Longhorn Pad A site in Elk County. The company reportedly initiated cryptocurrency mining operations at this location in 2022, utilizing on-site generators to power mining hardware. However, it’s alleged that these operations began without the necessary air emissions permit from the Pennsylvania Department of Environmental Protection (DEP).
While a permit was eventually granted in December 2023, a subsequent inspection in March 2025 revealed the site had been deserted, with crucial equipment removed, according to media sources. This discovery has raised serious questions about adherence to environmental regulations.
Regulatory Scrutiny and Company Stance
The DEP’s inspection confirmed the absence of generators and production facilities, prompting an official warning regarding the failure to properly decommission the wells by plugging them. In response, Diversified Energy has reportedly contested claims of complete abandonment, suggesting the possibility of restarting activities at the site.
This situation has amplified long-standing concerns voiced by environmental advocates and regulators regarding Diversified Energy’s business strategy. Critics point to a pattern of acquiring aging, low-productivity wells without concrete plans for their eventual and safe closure. As local oversight representative PJ Piccirillo stated, “The only thing we know is that it all looks abandoned. Generators and tanks were removed without any warning.” This is particularly noteworthy as the company had a prior commitment from 2021 to plug the Longhorn A well and thirteen similar wells upon cessation of their use.
Wider Implications and Environmental Risks
The financial implications of such practices are significant. Experts estimate that properly plugging a single well can exceed $100,000. With Pennsylvania already burdened by over 350,000 abandoned wells, the potential for substantial environmental damage and public cost is immense. These abandoned wells can pose risks such as methane leakage and groundwater contamination.
A 2022 report critically described the company’s approach as a “model designed to fail Appalachia,” warning that taxpayers could ultimately bear the clean-up expenses if companies do not fulfill their decommissioning responsibilities. Despite a recent agreement compelling Diversified to decommission 2,600 wells by 2034, the company remains under close watch. This includes scrutiny from the U.S. House Committee on Energy and Commerce, indicating the seriousness with which these issues are being treated at a federal level.
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