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Getty Realty in environmental dispute with tenant

Jericho-based Getty Realty Corp. said April 1, 2011

Jericho-based Getty Realty Corp. said April 1, 2011 it has bought 66 Shell gasoline station and convenience store properties in the Boston area and in southern New Hampshire. Photo Credit: Newsday File

The prime gas station tenant of Getty Realty Corp. says the Jericho-based company failed to perform required environmental cleanup at its leased properties, an allegation Getty denies.

The tenant, Getty Petroleum Marketing Inc. (which is typically referred to as "Marketing" to differentiate the two Getty company names) has sent a notice claiming that Getty Realty "is in default of certain of its obligations under its master lease by failing to perform certain environmental remediation."

A document filed with the Securities and Exchange Commission does not disclose an estimate of the cost of the proposed environmental work. Marketing has paid its September rent in full but says it may withhold its entire rental payments to Getty for October and November if Getty doesn't perform the environmental work.

Getty said it "believes that the alleged default is wholly without merit and that the company is in compliance with its environmental obligations." But it added, in pro forma statement that has accompanied previous news releases about its dealings with Marketing, "the company cannot provide any assurance that Marketing will meet its rental or other obligations."

With 1,170 operators leasing properties nationwide, Getty is the country's largest publicly-traded, gas station-focused real estate investment trust. It has tenants with both the Getty and Mobil brands.


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