The way you put it, it's that refinery, not the state doing the damage. I'd change your example to Missouri, through state gov't action (like levee control) damaging downstream states.

Then it's an actual interstate dispute. The downstream states, because they have been harmed, have 'standing'. That'll be the 'federal' part of federalism. Those cases go to the Supreme Court. The Texas case wasn't heard because there was no evidence Texas had been harmed.

BTW, people (not just state gov'ts) in the downstream states can sue if they can show harm - but they have to work their way through the courts.

But think about it. New York has not been harmed by Missouri, so they get no say in court. (if they try, the SC'll refuse to hear it)

BTW, it's not 'my' logic. Just logic and the way our federal system works.