Fracking-powered cryptocurrency mine in Pennsylvania closes without notifying regulators.

In a significant turn of events, Diversified Energy Company has ceased operations at its Longhorn Pad A facility in Pennsylvania, which had been repurposed to facilitate cryptocurrency mining through natural gas extracted from dormant gas wells. After reactivating the site in December 2022, the company has now reportedly abandoned the site and its associated infrastructure, a move that has raised concerns among state regulators regarding environmental compliance and potential future liabilities.

The Longhorn Pad A, located on public land, had been idle for nearly a decade before Diversified Energy decided to utilize the site for cryptocurrency mining, powered by natural gas extracted through hydraulic fracturing, commonly known as fracking. However, the company proceeded without the requisite air quality permits from state regulators, sparking legal scrutiny and unrest among local residents who experienced increased noise and pollution from the mining operations.

The Pennsylvania Department of Environmental Protection (DEP) has formally issued a notice of violation to Diversified, indicating that the company abandoned the site in violation of state law. Discussions surrounding the environmental implications of such an abandonment have intensified, particularly considering Pennsylvania’s extensive history with orphaned oil and gas wells. The state is estimated to have over 350,000 abandoned wells, which are responsible for a substantial percentage of greenhouse gas emissions.

Environmental advocacy groups have expressed acute concerns that the unchecked abandonment of wells like Longhorn A could result in long-term ecological impacts, including the continued release of methane and other pollutants into the atmosphere. Experts contend that the practice not only raises immediate environmental threats but also perpetuates a financial burden on taxpayers who may ultimately be responsible for the costly process of sealing off these wells.

Diversified Energy, which claims that it has not entirely abandoned the wells and intends to reactivate production, faces mounting pressure to fulfill its contractual obligations regarding well-plugging. As the landscape for fossil fuel extraction evolves, the broader implications of such abandonment practices and the company’s financial strategies are being scrutinized, with congressional inquiries already underway in light of its controversial operations.

Local officials, expressing concern over the company’s apparent lack of communication and transparency, highlight the ongoing uncertainty regarding future industrial developments in the area. As Diversified Energy expands its operational footprint, industry watchers continue to monitor its approach to environmental stewardship and regulatory compliance closely, particularly in light of Pennsylvania’s stringent laws governing oil and gas extraction.

The situation at Longhorn Pad A serves as a critical case study, reflecting the intersections of cryptocurrency mining, environmental accountability, and the legacy of fossil fuel infrastructure in the United States, raising urgent questions about the responsibility of energy companies in addressing both ecological and economic sustainability moving forward.