'We failed': El Reno admits oversight after 3.8 million-gallon water leak at Bitcoin mining facility

The City of El Reno says it failed to follow up after denying a permit for a 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.