Diversified Energy Abandons Pennsylvania Mining Site

Diversified Energy and Environmental Scrutiny

Diversified Energy has ceased operations at its Longhorn Pad A cryptocurrency mining site in Elk County, Pennsylvania, as of May 7, 2025, prompting regulatory scrutiny over environmental practices.

Diversified Energy’s abandonment of the site underscores wider industry challenges in managing environmental responsibilities, particularly in the cryptocurrency sector.

Pennsylvania’s Department of Environmental Protection issued notices to Diversified Energy for abandoning wells without proper decommissioning, sparking major environmental concerns. Local officials confirmed equipment was removed with no prior notice, indicating potential regulatory non-compliance.

“All we know is that the property seems to have been abandoned,” said PJ Piccirillo, Supervisor, Horton Township, Pennsylvania, emphasizing the lack of communication from Diversified Energy .

Diversified Energy, utilizing natural gas-powered mining operations, denied abandonment claims and hinted at resuming operations. Meanwhile, regulatory filings suggested the company’s further obligations under a settlement to plug 3,000 wells by 2034.

The financial impact includes the cost of plugging wells, possibly exceeding $100,000 each. Environmental groups cite regulatory gaps that facilitated operational breaches, increasing noise and air pollution risks.

Analyses indicate broader implications in a state with over 350,000 orphaned wells, highlighting a longstanding pattern of concerns over energy extraction practices.

Fiscal challenges persist due to potential penalties and remediation costs. Regulatory scrutiny may heighten as the incident reflects ongoing issues surrounding Pennsylvania’s energy infrastructure and environmental oversight.

Diversified Energy’s strategy of acquiring aging infrastructure faces criticism. These factors could reshape practices in managing legacy sites and investment decisions in the crypto mining industry.