EAST MEADOW, N.Y.--()--Getty Petroleum Marketing Inc. (“Getty Petroleum” or “the Company”) announced today that its landlord, Getty Realty Corp. (NYSE-GTY) (“Getty Realty”), previously served a notice of termination purporting to terminate the Master Lease as of December 12, 2011. Getty Petroleum believes that Getty Realty has no legal basis to terminate the lease and intends to take all necessary steps to protect its rights and the rights of its subtenants.
Getty Realty has the responsibility to evaluate and remediate certain environmental contamination on particular properties leased by Getty Petroleum. Environmental remediation is not only critical to protect the quality of surface water, ground water, soils, sediments and other parts of the environment from various contaminants, but is equally critical for Getty Petroleum's business operations. Getty Petroleum believes that Getty Realty breached the Master Lease by failing to perform its obligations of remediating environmental contamination at certain properties that are subject to the Master Lease. Getty Petroleum believes it has the express contractual right to take over the obligations to remediate the contamination at the effected properties and offset its performance of Getty Realty's obligations against the rent. Accordingly, on August 23, 2011, the Company delivered a Notice of Failure to Perform and Intent to Offset November 2011 rent. Pursuant to that Notice, the Company exercised its rights under the Master Lease to offset the November 2011 rent against a portion of Getty Realty's environmental obligations. On November 30, 2011, the Company sent Getty Realty another Notice of Intent to Offset the rent that otherwise would be due and payable for January 2012 through July 2012.