Diversified Energy Exits Pennsylvania Crypto Mining Site Amid Regulatory Violations
Elk County, PA – Cryptocurrency miner Diversified Energy has quietly abandoned its natural gas-powered mining site, Longhorn Pad A, leaving behind several unplugged wells and facing significant regulatory breaches, according to a report from the Erie Times-News. The site was reactivated in 2022 after nearly ten years of inactivity, with miners utilizing local gas to fuel on-site generators for cryptocurrency operations.
While Diversified did receive an air quality permit in December 2023, it faced scrutiny after a March 2025 inspection revealed the removal of mining infrastructure and empty metallic sheds. The Pennsylvania Department of Environmental Protection (DEP) subsequently issued a formal violation notice for the abandoned wells, as the company failed to adhere to commitments made in a 2021 agreement to plug Longhorn A and an additional 13 wells once they ceased operation.
Despite these findings, Diversified denied any abandonment claims and indicated a potential for future gas production. The company’s business model, which involves acquiring aging wells, has drawn criticism from environmentalists. They argue this strategy places a financial burden on taxpayers, as plugging a single well can exceed $100,000. Pennsylvania already has over 350,000 orphaned and abandoned wells, amplifying concerns over environmental impacts.
The DEP and the U.S. House Committee on Energy and Commerce are investigating the company’s practices. Local authorities, including Horton Township officials, expressed frustration over the lack of communication, with Supervisor PJ Piccirillo noting, “All we know is that the property seems to have been abandoned.”
As regulatory scrutiny intensifies, Diversified Energy’s future operations and their impacts on the local environment remain uncertain.
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