Industrial electrician Harvey Industries is one of the most well-known companies in the Houston area, but that is beginning to change as Harvey continues to hit hard.
In the past week alone, Harvey Industries has lost more than 200 employees, including the company’s chief financial officer, director of customer service, and vice president of operations.
Harvey Industries also reported $5.6 million in sales and $1.5 million in net income, according to its annual report.
But the company is still struggling to stay afloat as the state’s economy continues to slow and the company faces mounting pressure to turn around its finances.
The company has been under scrutiny since a leaked document from a federal task force on offshore oil and gas drilling, which outlined how the company operated.
It included a report by a former employee who said Harvey’s oil and natural gas drilling operation was a “pile of shit” that could not be trusted to do what it was supposed to do.
“You don’t hire somebody that can’t follow the rules,” said Scott Cottam, a former Harvey employee.
According to a recent Bloomberg Businessweek story, Harvey’s problems began in April 2017, when the state of Texas suspended its drilling license.
The state did not allow the company to drill in its waters, but it had no right to deny the company a license, so it was allowed to go ahead anyway.
The federal government’s Office of Surface Mining and Energy Enforcement (OSTME) began a probe into Harvey’s operations, which eventually led to a lawsuit against the company by the US Department of Justice.
A judge ruled in September 2018 that Harvey’s drilling operations did not violate the Texas Mining Law, which says that drilling must be conducted in the state in order to operate.
The lawsuit was later settled out of court, which was expected to cost the company about $2 million.
In January 2019, the Texas Railroad Commission suspended Harvey’s license.
Harvey did not appeal the decision.
After a federal investigation into Harvey in January 2020, the company faced an additional regulatory challenge from another US state.
In April 2020, Texas and Alabama agreed to a settlement in which the state would provide the company with an additional $1 million in compensation for lost royalties and royalties paid by the company in the future.
But that deal did not include any compensation for the lost royalties.
Harvey’s troubles continue to grow.
In January 2021, Harvey filed a lawsuit to get the US government to stop enforcing the federal Clean Water Act, which regulates the flow of wastewater into the Gulf of Mexico.
The company said the Clean Water Law requires it to clean up the spillway, and it is fighting the EPA over that issue.
Meanwhile, Harvey is also facing increasing pressure to take advantage of the federal government to refinance its debt, which is due to run out in December 2020.
Harvey, a subsidiary of Texas-based Houston-based oil and mining company Schlumberger, has said it will continue drilling wells and have the funds to make payments.
The court ruled in May that Harvey was not liable for the $7.7 billion loan.