Unauthorized Crypto Mining at Gas Wells Raises Concerns

Diversified Energy has installed cryptocurrency mining infrastructure at one of its well pads in Elk County, northwestern Pennsylvania, without obtaining the required permits. The installation has led to numerous noise complaints from residents in the area. The Department of Environmental Protection (DEP) has confirmed that Diversified is in violation of environmental law, as it had installed the equipment prior to receiving approval from the department.

The well pad, Longhorn Pad C, houses four natural gas wells and was acquired by Diversified Energy in September 2021. The pad had remained inactive for years until Diversified brought it online in December 2021. After just six months of low production volumes, Diversified applied for permits to use the well pad for cryptocurrency mining.

Environmental groups have expressed concerns that this practice could extend fossil fuel production in Pennsylvania and hinder the state’s progress toward its climate goals.

The DEP has yet to issue a permit for the well. The DEP’s community relations coordinator, Tom Decker, confirmed that it is a violation and the DEP could take enforcement action.