Cryptomining Noise Issue Draws Scrutiny from Counties & Attorneys

The cryptomining noise issue continues to be top-of-mind not only for Faulkner County residents dealing with the unrelenting high-pitched whine from nearby unwelcome cryptomining sites, but now also for local Quorum Courts, attorneys, and businesses that are are forming the Arkansas Blockchain Council that supports the cryptomining industry.

The discussion about a proposed cryptomining noise ordinance at the Faulkner County Quorum Court’s July 18 meeting attracted several outside visitors, including Van Buren County Judge Dale James, whose Quorum Court passed its own data center noise ordinance on July 20.

Also in the room were two Little Rock attorneys with Wright, Lindsey & Jennings who represent “several digital asset mining companies interested in bringing cutting-edge business ventures to Arkansas.”

At its July meeting, Faulkner County’s Quorum Court was split on assessments of the issue, with JP Kris Kendrick (R, Dist. 9) successfully amending the data center noise Ordinance after a visit to the Bono cryptomining site in Faulkner County heightened his concerns.

JP Jason Lyon (R, Dist. 8), with multi-years experience in urban and regional planning, objected to “industry-targeted” legislation and voted “present” on the noise ordinance along with JP Tyler Pearson (D, Dist. 7).

From the Arkansas Democrat-Gazette:

“I don’t have any issues with mining crypto, but just the noise level, the lack of care for our neighbors,” Kris Kendrick, a justice of the peace on Faulkner County’s Quorum Court, said during its July meeting. “I think there’s a continual disregard for being a good neighbor and this is not acceptable.” (…)

Kendrick said he visited an operational digital asset mining operation in unincorporated Faulkner County with his children and Arkansas state Rep. Matthew Brown. When they arrived, he said, a security guard got out of his car, pulled an AR-15 out of his trunk, and filmed them.

Kendrick said this was just one example of bad neighbor-like conduct by crypto operations. Despite that, Kendrick said he still had his reservations about the ordinance.

Kendrick introduced an amendment to the original proposed noise ordinance sponsored by Justice of the Peace Maree Coats, which removed crypto-specific language present in the original and noise study and permitting requirements, saying that it was important to address the root of the problem.

“There is no doubt — anybody that’s been out to Bono, you know there’s an issue. I would not want to live there when you can’t sit up on your front porch,” Kendrick said. “I’m worried about the crypto-specific language in there.”

Coats, who spoke forcefully about the impacts of the noise that crypto operations were generating on Faulkner County residents, was against Kendrick’s amendment, saying that his substantial changes to the original ordinance could jeopardize its ability to stand up in court in the event of a legal challenge.

“I also want to make the point that it’s not these people stepping out on the front porch and [not] being able to enjoy a glass of tea sitting on the back porch. These people can hear this sound 24/7 from their bedrooms,” Coats said. “So it’s not something where you … can just stay inside your home and not be bothered.” (…)

As the justices of the peace debated the merits of the different amendments and differing philosophies on regulations, eyes from beyond Faulkner County watched from the benches of the small courtroom.

In the front row was Van Buren County’s county judge, Dale James, who had come to observe the outcome as he prepared for Van Buren County’s Quorum Court meeting on Thursday, where justices will vote on their own crypto noise ordinance.

Directly behind him were two lawyers, whispering to each other throughout as they flipped through marked-up copies of Act 851. The lawyers, William Ogles and Steve Giles of the Wright Lindsey Jennings law firm, represent “several digital asset mining companies interested in bringing cutting-edge business ventures to Arkansas.” Ogles declined a live interview, citing their firm’s media policy, and did not name the firms they are representing.

“We look forward to working together with our community partners all across the state. Unfortunately, some recent local regulations appear to have been rushed and may be in violation of the law. At this time, all [legal] options are on the table,” Ogles and Giles wrote, adding later that local ordinances, even if passed before the law goes into effect, would be unenforceable if they conflict with the law according to the state constitution.

As for Van Buren County, James, the county judge, disagreed that the law would retroactively affect ordinances passed prior to the law’s going into effect. He added that attending Faulkner County’s Quorum Court meeting was eye-opening, and said there will likely be some minor tweaks to Van Buren County’s proposed ordinance due to his observations….