Cryptocurrency miner Diversified Energy has quietly left a natural gas-powered mining site in Elk County, Pennsylvania, reportedly abandoning unplugged wells and violating regulations.
The site, called Longhorn Pad A, was brought back into use in 2022 after a decade of sitting idle. According to the Erie Times-News, Diversified began using it to power cryptocurrency mining computers with on-site generators.
The report says the operation started without obtaining an air quality permit from the Pennsylvania Department of Environmental Protection (DEP). Although the company eventually received the permit in Dec. 2023, an inspection in Mar. 2025 found that Diversified had already dismantled the mining infrastructure.
DEP flags Diversified over unplugged wells
Empty metal sheds and missing production equipment prompted the DEP to issue a formal violation notice for well abandonment. However, Diversified denied abandoning the well and claimed it could resume gas production.
The DEP and environmental advocates argue that the company hasn’t fulfilled its obligations. Under a 2021 agreement, Diversified agreed to plug Longhorn A and 13 other wells at the end of their operational life. However, it has reportedly failed to meet this responsibility.
Environmentalists have long expressed concerns about Diversified’s business model. The model includes acquiring aging, low-producing wells and extracting the remaining value without adequate plans for decommissioning.
Diversified’s strategy under federal investigation
Plugging only one well can cost over $100,000, and with over 350,000 orphaned and abandoned wells in Pennsylvania, the stakes are incredibly high. Moreover, a 2022 report described the company’s strategy as a “business model built to fail Appalachia.”
The reports also warn that taxpayers could be left to cover the cost of thousands of unplugged wells. Diversified recently agreed to plug 3,000 wells by 2034 as part of a separate legal settlement, but it still faces regulatory scrutiny, including an investigation by the US House Committee on Energy and Commerce.
Local supervisor PJ Piccirillo told the Erie Times-News that the generators and tanks were taken without warning. “All we know is that the property appears to have been abandoned,” he said.
