Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
The City of El Reno says it failed to follow up after denying a permit for a <a href="https://xpertsstudio.com/el-salvador-sticks-with-one-bitcoin-a-day-purchase-has-nayib-bukele/” title=”El Salvador Sticks With 'One Bitcoin a Day' Purchase: Has Nayib Bukele”>Bitcoin mining operation that officials believe was operating without a license, contributing to a massive water leak that disrupted the city last week.
The leak is believed to have released about 3.8 million gallons of water and forced water restrictions across El Reno. Schools were also closed for two days.
City acknowledges oversight
El Reno Interim City Manager Ken Brown acknowledged the city failed to follow up after the permit for Bitcoin mining company Athlon Blockchain was denied in 2023.
“We failed,” Brown said.
Brown said city officials assumed the company would comply with the city’s decision.
“The assumption was that people would respect us,” Brown said, comparing the situation to drivers being expected to obey stop signs.
Brown said the city now recognizes that assumption was not enough.
“Did we not follow up to what we should? Yes, we absolutely did and we own that. And we will address that internally,” Brown said.
Millions of gallons of water lost
The city is still determining the financial impact of the leak.
Brown said approximately 3.8 million gallons of water were lost and city employees spent about 16 hours responding to the incident.
Officials believe a faulty fire suppression system at the facility led to the water loss.
The facility is located in a rural area off Jensen Road.
El Reno Mayor Steve Jensen said the property is secured behind a chain-link fence, making it difficult to determine what activity was taking place at the site.
“It’s hard to tell — where they were in operation, where they working, was anything going on?” Jensen said.
City officials said the company will be expected to cover the costs associated with the incident.
Concerns over Bitcoin mining and water use
Athlon’s website, whichis currently offiline, described the company as developing mobile data centers using air- and liquid-cooled technology.
Oklahoma State University Regents Professor Sunderesh Heragu with the School of Industrial Engineering and Management said he could not comment specifically on the El Reno incident but discussed the broader challenges associated with Bitcoin mining and data centers.
Heragu said facilities need to closely monitor both energy and water consumption to ensure their operations do not affect other users.
“All parties will have to be closely monitoring energy and water usage in these facilities so it doesn’t deprive the typical users,” Heragu said.
El Reno plans new safeguards
City leaders said they are working on new safeguards to prevent a similar incident from happening again.
Brown said the city is considering a system that would alert officials when unusually high water usage or pressure drops occur.
He said the system could use radio transmitters connected to fire hydrants to notify the city when water pressure changes significantly.
The goal is to give officials an earlier warning about potentially serious water issues.
Property condemned
The city took additional action against the property Friday, condemning the facility and issuing a 10-day removal notice.
Officials cited multiple fire, electrical and building violations.
The future of the facility remains uncertain.
A hearing between the city and Athlon is scheduled for Sept. 14. City officials say that hearing will help determine what happens next.
Meanwhile, El Reno continues to assess the cost of the water loss and what additional steps may be necessary to prevent another major incident.
Source: www.news9.com