Fracking-Powered Cryptocurrency Mine in Pennsylvania Shuts Down Without Notice
Overview of Sudden Closure
A cryptocurrency mining operation powered by fracking in Elk County, Pennsylvania, has abruptly ceased operations, leaving state regulators and local residents in a state of concern. The facility, operated by Diversified Energy, was utilizing natural gas from a well pad known as Longhorn Pad A, which had been dormant for nearly a decade before being revitalized in late 2022. State inspectors discovered the site abandoned, raising alarms about potential environmental hazards from unplugged wells across Appalachia.
Background of Longhorn Pad A
Longhorn Pad A previously belonged to another gas company, EQT, which had drilled the wells in 2011 but left them inactive. Diversified Energy activated the site in December 2022, despite not obtaining essential air quality permits from state regulatory agencies. The mining operation, which relied on on-site generators powered by natural gas, came as a response to a burgeoning cryptocurrency market, allowing the company to monetize otherwise low-producing wells that lacked necessary pipeline infrastructure.
Despite claiming to be an environmentally conscious operator, criticisms around the company’s environmental practices have surfaced, especially regarding its compliance with state laws on well closure and maintenance.
Environmental and Regulatory Concerns
The Pennsylvania Department of Environmental Protection (DEP) responded to the abandonment of the Longhorn Pad A site, issuing a notice of violation on March 10, 2025. The DEP found equipment associated with the mining operation absent during a site inspection earlier this year. Daniel O. Frick, a director of Diversified Energy, contested the abandonment claim, insisting that the wells were still operational and that the company planned to resume production.
State regulators have expressed skepticism about this assertion, citing an obligation to properly plug abandoned wells to prevent environmental contamination. Experts warn that unsealed wells can leak methane, a potent greenhouse gas, posing serious risks to climate and local ecology. Pennsylvania is home to over 350,000 orphaned and abandoned oil and gas wells, contributing significantly to the state’s greenhouse gas emissions and raising concerns about who will ultimately foot the bill for environmental remediation.
Growing Concerns Over Company Practices
The abrupt shutdown of the Longhorn crypto mine has intensified scrutiny of Diversified Energy’s business strategy, which has rapidly increased its portfolio of low-performing wells across several states in the Appalachian region. Environmental advocates argue that this model jeopardizes long-term ecological health, as the company is accused of offloading the liability for well closures and cleanups onto public resources.
"Diversified must not be allowed to walk away and leave others to clean up its mess," warned Charles McPhedran, senior attorney at Earthjustice, highlighting the ongoing and unaddressed environmental liabilities associated with the firm’s operations.
Moreover, recent settlements and violations raise concerns about Diversified’s commitment to sustainable practices. Following a class-action lawsuit in West Virginia, where landowners alleged that the company abandoned wells on their properties, Diversified agreed to plug nearly 3,000 wells across Appalachia by 2034. Nevertheless, inspections in early 2025 led the DEP to issue multiple notices for further violations related to abandoned shale gas wells in Pennsylvania.
Future Implications
As discussions continue, the state has given Diversified until September 2025 to plug the abandoned wells. The costs associated with well-plugging can exceed $100,000, leading many operators to neglect their responsibilities, which exacerbates the issue of environmental degradation.
Despite these challenges, Diversified Energy is expanding its operations and recently announced a significant partnership with FuelCell Energy and TESIAC, aiming to harness natural gas from old fracking wells to power off-grid data centers. This expansion raises additional questions about the company’s capacity to responsibly manage its well assets without further burdening state regulators or communities.
The situation at Longhorn Pad A exemplifies broader challenges within the energy industry, particularly concerning regulatory compliance and environmental accountability. As America shifts towards increased reliance on natural gas and emerging technologies like cryptocurrency mining, the implications for public health and environmental welfare remain critical topics of discussion among policymakers and environmentalists alike.
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