ICYMI: Diversified Abandons Gas Powered Cryptomining Site in Pennsylvania
"Abandoning wells violates the Pennsylvania Oil and Gas Act and saddles states with the cost and responsibility of plugging them"
ELK COUNTY, PA (05/01/2025) (readMedia)-- Roughly two years after improperly installing and operating cryptocurrency mining infrastructure before obtaining the required state permits, Diversified Production LLC suddenly abandoned their well pad and associated crypto infrastructure, violating state law once again.
First reported by Audrey Carleton at Capital & Main, Diversified left town without safely closing down the well pad-a common malpractice among companies that shifts the burden of cleanup onto local communities. "Companies abandon wells when they walk away from them without plugging them after they are no longer lucrative, increasing the likelihood that they will be left to leak planet-warming methane gas into the atmosphere for years to come. Abandoning wells violates the Pennsylvania Oil and Gas Act and saddles states with the cost and responsibility of plugging them," per Carleton's reporting. Despite longstanding claims by the cryptomining industry that they take well shutdowns seriously, the reality tells a different story-yet another example of the industry's use of greenwashing.
"Diversified must not be allowed to walk away and leave others to clean up its mess," said Charles McPhedran, a senior attorney at Earthjustice who urged the DEP last year to withdraw approval for Diversified. He cited the energy-intensive nature of cryptocurrency mining, its threats to air quality, and Diversified's disregard and failure to meet critical DEP requirements.
The Longhorn well pad originally housed fracking operations, but sat inactive for years before being converted for cryptocurrency mining. Diversified built five gas-powered engines and one generator with the purpose of mining cryptocurrency, and began operations before obtaining approval from the Pennsylvania Department of Environmental Protection (DEP).
Fracking is widespread in Pennsylvania, and fracking sites, like Diversified's locations in Pennsylvania, now power energy-intensive cryptomining machines. Because many of these operations are unknown and some are mobile, there are few details about their scale and impact on local communities and the climate-both while operating and when unsafely abandoned.