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### Crypto Miner Diversified Energy Faces Backlash Over Abandoned Gas-Powered Facility
In a striking turn of events, Diversified Energy, a cryptocurrency mining firm, has abandoned its natural gas-powered mining facility in Elk County, Pennsylvania. This decision has ignited significant environmental concerns, particularly as the company left several wells open—actions that contravene local laws governing mining operations. Local news reports reveal a troubling picture of negligence and regulatory oversight.
### The Background of Longhorn Pad A
The Longhorn Pad A facility, which had been dormant for nearly a decade, was revitalized in 2022 by Diversified Energy. The company tapped into the facility’s extensive gas reserves to power generators, which in turn supplied energy for their bitcoin mining operations. However, this resurgence was marred by allegations of insufficient regulatory compliance.
In particular, the firm failed to secure the necessary air quality permit from Pennsylvania’s Department of Environmental Protection (DEP) before restarting its operations in 2022. It didn’t receive this critical permit until December 2023, long after the operations had commenced.
### Regulatory Violations and Abandonment
A two-month delay in a site inspection by the DEP uncovered a stark reality: Diversified had moved its mining equipment offsite. When representatives conducted the inspection, they were greeted with empty metal sheds that bore little trace of the company’s presence. This led the DEP to issue a formal notice of violation for the well abandonment.
In response, Diversified claimed it hadn’t abandoned the site but rather intended to resume gas production soon. However, environmental experts and DEP officials asserted that the company’s actions amounted to a clear dereliction of its responsibilities.
### Promises Unkept: The 2021 Agreement
The company had a prior agreement stemming from a 2021 settlement, committing to properly shut down Longhorn A alongside 13 other wells. This commitment seems not only ambitious but also unfulfilled, raising alarms among environmental advocates concerned about the potential long-term consequences of such neglect.
### Environmental Concerns: The Broader Picture
Diversified Energy’s business model—buying up aging, inefficient wells to extract whatever production remains—has drawn ire from environmental organizations. With the costs to properly seal each well exceeding $100,000, Pennsylvania is facing a grim reality with over 350,000 orphaned wells scattered throughout the state, posing significant economic and environmental risks.
In another legal maneuver, Diversified had also pledged to plug 3,000 wells by 2034, but officials in Horton County have expressed frustration due to the company’s lack of updates on this front.
### Crypto Mining and U.S. Backlash
The abandonment of Diversified Energy’s facility is just one aspect of a growing backlash against cryptocurrency mining operations across the U.S. States are increasingly pushing back against the disruptions caused by these facilities.
For instance, Arkansas recently enacted a law banning crypto mining operations within 30 miles of military bases, highlighting a broader concern regarding the environmental and social implications of these businesses. Furthermore, residents in Granbury, Texas, have taken legal steps against Marathon Digital, alleging that their mining facility has been polluting the environment through excessive noise.
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This narrative around Diversified Energy sheds light on the complexities and challenges that cryptocurrency mining poses to local communities and the environment. The firm’s failure to honor its commitments not only jeopardizes local resources but also contributes to the rising sentiment against crypto mining in the United States.