Getty Petroleum asks court to enforce remediation under master lease

By Lisa Kerner

Charlotte, N.C., Dec. 21 - Getty Petroleum Marketing Inc. and Getty Terminals Corp. filed a complaint against Getty Properties Corp. and Gettymart Inc. with the U.S. Bankruptcy Court for the Southern District of New York on Wednesday.

In the complaint the companies are seeking declaratory relief for "repeated and continuing material breach" of a Nov. 2, 2000 consolidated, amended and restated master lease among the parties.

According to the filing, Getty Properties and Gettymart failed to honor its contractual obligations to remediate environmental contamination from leaking underground storage tanks and system components on properties leased to Getty Petroleum.

Instead of cleaning up the contamination, Getty Petroleum is accused of covering it with concrete.

Getty Properties is asking the court to allow it to assume remediation obligations under the master lease and to offset rent including, but not limited to, rent for October and November 2011 and for January through July 2012.

In addition, Getty Properties is seeking attorneys, fees and costs.

As previously reported, the master lease was terminated as a result of nonpayment of rent.

Getty Petroleum, an East Meadow, N.Y., distributor of motor and heating fuels, filed for bankruptcy on Dec. 5. Its Chapter 11 case number is 11-15606.

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