Leasing a gasoline station in the current economy is fraught with many challenges; and one of the most important (yet overlooked) challenges is avoiding the environmental traps caused by the actions or inactions of your tenant. Lessors of gasoline service stations live in constant fear that an environmental liability, such as contamination caused by a spill or discharge, or penalties levied by NJDEP, will devastate their business or investment. Fault is not necessary for liability. Despite this reality, lessors of gasoline stations rarely take the proactive measures necessary to minimize their environmental exposure. Unfortunately, as too many of us know, the failure to take such actions can be tragic. Environmental liabilities fall into two categories: contamination and compliance. In New Jersey, many of the state’s environmental statutes, such as the Spill Compensation and Control Act (Spill Act), and New Jersey Underground Storage of Hazardous Substances Act (UST Act), impose joint and several liability on the property owner and facility

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