Fracking-Powered Cryptocurrency Mine in Pennsylvania Closes Abruptly, Leaving Environmental Concerns in Its Wake
By Audrey Carleton
Published: May 1, 2025
In a development that is raising eyebrows among regulators and environmental advocates alike, Diversified Energy has shut down its cryptocurrency mining operations at the Longhorn Pad A fracking site in Elk County, Pennsylvania. The closure occurred without any formal notification to state authorities, leading to worries about the repercussions of abandoned oil and gas wells in the region.
A Brief Resurgence
The Longhorn Pad A site, nestled within a field of tall grass on state game lands, had been in a dormant state for nearly a decade before being reactivated in 2022. This revival involved harnessing natural gas from the well to power cryptocurrency mining supercomputers, which became a source of noise and pollution in the previously tranquil area, where residents had enjoyed hunting and outdoor activities.
Diversified Energy initiated the mining operation without waiting for a critical air quality permit from the Pennsylvania Department of Environmental Protection (DEP), which was required for such activities. Predominantly, the company sought to capitalize on the mining boom by extracting value from underperforming gas wells, a motive that now casts a shadow over its operational practices.
Sudden Shutdown and Abandonment
Federal and state inspectors recently discovered that the once-bustling cryptocurrency mining setup was entirely abandoned, a finding that led to significant regulatory scrutiny. State officials determined that the company had violated the Pennsylvania Oil and Gas Act by leaving the site without properly plugging the wells, which they claim poses a risk of ongoing methane emissions—a potent greenhouse gas that exacerbates climate change.
Diversified Energy has amassed a significant portfolio of aging and low-producing wells, leading to fears that the company may lack the financial and operational capabilities for future well-plugging efforts. This unease is compounded by reports stating that Pennsylvania contains an estimated 350,000 orphaned and abandoned oil and gas wells, making it the state with the highest number of such sites in the U.S., contributing to nearly 8% of the state’s methane emissions.
Regulatory Concerns and Environmental Impact
In the wake of the shutdown, the DEP issued a notice of violation to Diversified Energy for abandoning Longhorn Pad A and requested a prompt response. A DEP inspector’s visit in March revealed that the mining equipment had been entirely removed, contradicting the company’s assertions that the site was still viable for production.
Despite these findings, Daniel O. Frick, a director at Diversified Energy, claimed in correspondence with regulators that the site was not abandoned, emphasizing plans to resume operations. This assertion has been met with skepticism, as the DEP noted the site was not equipped for production.
Environmental advocates have long been warning about the risks posed by abandoned or poorly managed gas wells, highlighting that when companies like Diversified Energy financially burden themselves with older sites, they often ultimately abandon their cleanup responsibilities. “Diversified must not be allowed to walk away and leave others to clean up its mess,” stated Charles McPhedran, a senior attorney with Earthjustice, reinforcing the urgency of regulatory action.
Future Implications
The situation at Longhorn Pad A raises essential questions not only about the fate of those specific wells but also about the broader strategy employed by Diversified Energy regarding its extensive portfolio of aging gas wells in Appalachia. The company, engaged in a business model that is heavily reliant on extracting short-term profits from low-producing wells, risks creating an environmental liability that may fall to the public to address.
With the deadline looming for Diversified to plug the abandoned wells, the state government faces pressure to enforce stricter regulations against the abandonment of oil and gas wells—a practice that can lead to significant environmental degradation. Ted Boettner, a senior researcher at the Ohio River Valley Institute, emphasizes the importance of proactive measures, warning that without stringent enforcement, the problem of well abandonment will only continue to grow.
While Diversified has been expanding its operations, recently announcing partnerships to harness energy from fracking wells for off-grid data centers, the situation at Longhorn Pad A prevents any optimistic outlook about its sustainability and environmental responsibility. In the wake of this abrupt shutdown, both regulators and community members will be watching closely to ensure the company fulfills its obligations and does not leave a trail of unmonitored and hazardous wells in its wake.
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