In the tranquil landscapes of Elk County, Pennsylvania, a storm is brewing over a natural gas-powered cryptocurrency mining site known as Longhorn Pad A. Diversified Energy, the company behind this venture, has reportedly pulled up stakes, leaving behind a contentious trail of unplugged wells and regulatory infractions. This scene comes into sharper focus following a March 2025 inspection by the Pennsylvania Department of Environmental Protection (DEP), which found the site stripped of its mining infrastructure and issued a formal violation notice for well abandonment.
A Vanishing Act
Diversified Energy’s operations at Longhorn Pad A, rekindled in 2022 after nearly a decade of dormancy, have come under intense scrutiny. Initially revived to harness natural gas for powering cryptocurrency mining computers, the site was launched without the necessary air quality permit from the DEP. Although the permit was eventually secured in December 2023, by March 2025, the once-buzzing site stood barren, prompting environmental concerns. Empty sheds and absent production equipment tell a story of abrupt departure.
Despite the DEP’s assertion of abandonment, Diversified Energy contests this narrative, suggesting the site may yet see a return to gas production. However, their assurances do little to sway environmental advocates and regulatory bodies, who highlight the company’s unfulfilled obligation to plug 14 wells, including Longhorn A, under a 2021 agreement. The DEP’s findings add weight to the growing chorus of skepticism surrounding Diversified’s practices.
An Industry Under the Lens
The predicament at Longhorn Pad A is emblematic of broader concerns surrounding Diversified Energy’s business model. Critics argue that the company’s strategy of acquiring aging, low-producing wells to squeeze out remaining value lacks foresight, especially regarding decommissioning responsibilities. Plugging a solitary well can cost upwards of $100,000, and with Pennsylvania already grappling with over 350,000 orphaned and abandoned wells, the stakes are colossal.
A 2022 report branded Diversified’s approach as a “business model built to fail Appalachia,” warning of a potential taxpayer burden to rectify the environmental legacy of unplugged wells. Despite a separate legal commitment to plug 3,000 wells by 2034, Diversified’s operations remain under the magnifying glass of regulatory scrutiny, including an ongoing investigation by the US House Committee on Energy and Commerce. This scrutiny is part of a larger conversation about the crypto industry’s sustainability, as highlighted in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer.
Local reaction in Horton Township, where Longhorn Pad A is situated, paints a picture of frustration. Township officials, including local supervisor PJ Piccirillo, report a lack of communication from Diversified. “All we know is that the property seems to have been abandoned,” Piccirillo told the Erie Times-News, highlighting the sense of uncertainty left in the wake of the company’s retreat.
The Broader Crypto Mining Backlash
This situation in Pennsylvania is not isolated but part of a broader narrative of growing resistance to crypto mining across the United States. On April 25, 2025, Vilonia, Arkansas, saw its planning commission unanimously reject a proposal for a new cryptocurrency mining facility amid local opposition. Earlier in the year, Arkansas lawmakers introduced legislation aiming to prohibit mining operations in proximity to US military sites.
Such opposition is symptomatic of a nationwide trend where communities and lawmakers are increasingly scrutinizing the environmental and societal impacts of crypto mining ventures. From noise complaints in Granbury, Texas, to legislative challenges in Arkansas, miners are finding themselves at the center of heated debates. This scrutiny is mirrored in the broader crypto landscape, where Crypto token failures soar, with 1 in 4 launched since 2021 dying in Q1, indicating a volatile market environment.
Looking Ahead: Questions and Challenges
As Diversified Energy faces mounting pressure to address its environmental obligations, the broader crypto mining industry watches closely. Will the company rectify the situation at Longhorn Pad A and fulfill its commitment to well plugging, or will this become another chapter in a contentious history of environmental oversight?
The unfolding drama raises significant questions about the future of crypto mining in the United States, particularly in regions where environmental concerns intersect with industrial ambitions. As regulators and communities grapple with these challenges, the industry may need to adapt, ensuring sustainable practices that align with public and ecological interests.
In the meantime, the landscape of Elk County remains a poignant reminder of the intricate dance between technological advancement and environmental stewardship—a balancing act that will undoubtedly shape the contours of crypto mining for years to come.
Source
This article is based on: Crypto miner deserts Pennsylvania site, fails to plug wells: Report
Further Reading
Deepen your understanding with these related articles:
- US crypto groups urge SEC for clarity on staking
- The SEC Can Learn From the IRS in Making Regulation Simpler for Crypto
- ‘Huge Shift’ in crypto firms’ compliance mindset, says Elliptic co-founder
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
