An oil and gas company seeking to mine cryptocurrency in Elk County, Pennsylvania, violated state regulations when it installed equipment before obtaining necessary approval from the state’s Department of Environmental Protection.
A March 1 DEP inspection of Diversified Gas and Oil’s Jay Township site found that the company had set up tools for cryptocurrency operations. But, according to the DEP, Diversified did not have a permit to install the “air pollution sources” used to generate power for crypto mining.
A DEP spokesman said the violation could result in enforcement action.
The inspection report notes the equipment at the site, including four natural gas microturbines to produce electricity along with two trailers with cryptocurrency equipment. There was also an engine, a generator and an oil tank, but they were not operational. The DEP spokesperson said the department could not confirm whether the cryptocurrency equipment was installed and working before March 1.
PennFuture, the Clean Air Council and Earthjustice submitted comments asking the DEP to deny or withdraw approval of Diversified’s plan. Their letter points to the company’s past violations in Pennsylvania, operating without a valid permit at 19 locations, listed in a DEP filing.
Rob Altenburg, director of the PennFuture Energy Center, said the bitcoin mining industry is not heavily regulated.
“If we see a lot of violations at a company, it certainly raises questions: Are they prioritizing public health and environmental protection in their operations,” Altenburg said.
Jay Township supervisors had also written to DEP earlier this year, saying they were receiving complaints about noise coming from the site. Residents near other crypto mining sites in Pennsylvania have made similar complaints. When reached for comment, a supervisor said the company had addressed the township’s concerns and the site was now quieter.
Bitcoin, a type of cryptocurrency, is currently priced at around $30,000. Bitcoin mining uses computer systems to solve complex problems, in an effort to do it faster than other miners and be rewarded with a coin. But these supercomputers consume a lot of energy.
“Across the entire Bitcoin network, it uses about as much energy as the state of New York, more than many entire countries,” Altenburg said.
Altenburg said he and others are trying to raise awareness at the state and federal level.
“Here’s this problem, and it’s bad now,” he said. “There is pollution now, but it could get worse.”
Alabama-based Diversified is the nation’s largest owner of oil and gas wells.
