LOVING, N.M. (AP) — Craig Ogden has farmed alfalfa and cotton in southeastern New Mexico for nearly three decades, and he's seen the acreage used for farming dwindle as neighbors seize lucrative offers from the oil and gas industry.

The northern border of his property teems with oil wells drilled in the past five years. Dozens of natural gas flares send bright orange flames into the sky.

"Fresh water for sale" signs dot the nearby highway as trucks loaded with water tanks speed past.

Oil isn't the only "liquid gold" in the Permian Basin. Energy companies need water — and lots of it — to retrie...