Law360, New York ( August 7, 2014, 11:01 AM EDT) -- According to the National Integrated Drought Information System, nearly 34 percent of the contiguous U.S. is currently suffering from moderate to exceptional drought conditions. Not surprisingly, many of the areas hardest hit by drought include counties in Texas, New Mexico, Oklahoma and Colorado, some of which also have witnessed tremendous population growth in recent years. Drought conditions, combined with increased demand for freshwater in traditionally arid areas of the country, have resulted in a "water crunch," with demand for freshwater outstripping supply. Many of those areas suffering from the worst drought conditions also happen to be situated above some of the most productive unconventional oil and gas plays in the country, and because unconventional oil and gas production can require significant amounts of freshwater, the growing water crunch is creating an increasing threat to the oil and gas and other industries in these areas....