A method for resolving sludge/emulsion formed as a result of adding introduced fluids to oil and gas wells. The method comprises adding a water-dispersible emulsion breaker and/or adjunct additives that may include iron-control chemicals, scale-control chemicals, or paraffin-control chemicals or combinations thereof in amounts sufficient to separate the sludge/emulsion into an oil phase and a water phase and to control iron, scale, or paraffin in the oil phase. Further treatment of water phase includes treatment with water clarifiers, allowing the water phase to remain in settling vessels, and passing the water phase through a macroreticular resin resulting in water that is environmentally acceptable for disposal.