Shale Producers Turn Against Each Other Over Toxic Water Leaks

The toxic water that gushes out of oil wells in the Permian Basin of Texas and New Mexico has spurred environmental concerns and even earthquakes. Now the problem has become so acute that it’s turning producers against one another.

In an ongoing case in Texas’ Loving County (population: 48), a New Mexico oil driller says Devon Energy Corp. and another company wrecked its reserves by flooding them with wastewater.

Closely held Stateline Operating LLCsays Devon and water disposal specialist Aris Water Solutions Inc. pumped so much fluid underground in the Permian Basin that it leaked into a prolific oil-producing ...