Shocking: Pennsylvania Crypto Miner Deserts Site, Leaves Unplugged Wells

The intersection of cryptocurrency mining and environmental responsibility is once again under the spotlight, this time in the rolling hills of Pennsylvania. A report highlights concerning actions by a crypto miner, raising questions about accountability and the lasting environmental impact of such operations.

Crypto Mining Operation Raises Red Flags in Pennsylvania

Diversified Energy, a company involved in cryptocurrency mining, has reportedly vacated a natural gas-powered site in Elk County, Pennsylvania. The site, known as Longhorn Pad A, was repurposed for crypto mining in 2022 after being inactive for nearly a decade. However, this operation allegedly began without securing the necessary air quality permit from the Pennsylvania Department of Environmental Protection (DEP).

While a permit was eventually granted in late 2023, a subsequent inspection in March 2024 found that the mining equipment had been removed. The site appeared empty, leading the DEP to issue a formal violation notice for well abandonment. This situation brings the issue of proper site closure and regulatory compliance for crypto mining facilities to the forefront.

The Problem of Abandoned Wells and Environmental Impact

A significant concern highlighted by the report is the failure to plug natural gas wells at the site. Under a 2021 agreement, Diversified Energy had committed to plugging Longhorn A and 13 other wells once their operational life ended. Plugging wells is a critical step to prevent methane leaks, groundwater contamination, and other environmental hazards.

Environmental advocates have long criticized Diversified’s business model, which often involves acquiring older, lower-producing wells. Critics argue this approach extracts remaining value without adequate provision for the costly process of decommissioning and plugging these wells. The potential environmental impact is substantial, particularly in Pennsylvania, which already has hundreds of thousands of orphaned and abandoned wells. The cost to plug a single well can exceed $100,000, potentially leaving taxpayers responsible for cleanup if companies fail to meet their obligations.

Facing Regulation and Scrutiny Over Obligations

Diversified Energy reportedly denies the site was abandoned, suggesting gas production might resume. However, the DEP and environmental groups maintain the company has not fulfilled its obligations. The violation notice underscores the regulatory challenges the company faces.

Diversified’s practices have drawn broader scrutiny. A 2022 report warned their model could fail Appalachia, leaving behind thousands of unplugged wells. The company recently agreed to plug 3,000 wells by 2034 in a separate settlement but remains under investigation, including a probe by a US House Committee. Local officials in Horton Township, where the site is located, reported receiving no notice before the equipment was removed, reinforcing the perception of abandonment.

Wider Opposition to Crypto Mining in the United States

The situation in Pennsylvania is not isolated. Across the United States, crypto mining operations are encountering increasing opposition from communities and regulators concerned about noise, energy consumption, and environmental issues.

• In Vilonia, Arkansas, a proposal for a crypto mining facility was recently rejected due to resident opposition.
• Arkansas lawmakers introduced a bill to ban crypto mining within 30 miles of US military facilities in the state.
• Residents in Granbury, Texas, filed a lawsuit against a mining facility over noise pollution concerns.

These examples illustrate a growing trend where the expansion of crypto mining faces local pushback and increased regulation.

Conclusion: The Need for Accountability

The report concerning the Pennsylvania site highlights critical issues surrounding environmental responsibility and regulation within the crypto mining industry. The alleged abandonment of wells and failure to meet obligations by a company like Diversified Energy raise serious questions about accountability and the potential burden on the public for environmental cleanup. As crypto mining continues to evolve, ensuring operators adhere to environmental regulations and fulfill their decommissioning responsibilities is crucial for sustainable growth and maintaining public trust.