Petty’s Island in New Jersey, currently owned by Citgo, will be transferred to a firm linked to a prominent conservative donor.

Petty’s Island, a historically rich 300-acre landmass in the Delaware River off Pennsauken, New Jersey, has drawn significant interest for its transformative potential as an environmental and recreational sanctuary. The land, once the hunting ground for Native American tribes and later cultivated by Quakers, is steeped in folklore, rumored to have served as a temporary landing site for pirates and even Benjamin Franklin. In recent years, various redevelopment initiatives proposed constructing hotels and golf courses, but the state ultimately decided to preserve the area as a nature reserve.

Owned by Citgo Petroleum Corporation— a subsidiary of Venezuela’s state oil entity, Petróleos de Venezuela (PDVSA)— for over a century, Petty’s Island is now facing an uncertain future laden with questions surrounding pollution remediation and legal battles involving its ownership. Citgo’s 110-year legacy on the island has left a complicated environmental footprint from its oil storage and distribution operations.

Recent international developments have further complicated ownership issues surrounding the island. In late 2023, a U.S. District Court judge approved Amber Energy as the buyer of Citgo’s Venezuelan parent company. This decision was part of a multi-year process aimed at settling billions of dollars in debts, culminating in Amber Energy’s successful bid of approximately .9 billion in a court-ordered auction. Analysts estimate the network of petroleum assets associated with Citgo to be valued at around billion.

As these proceedings unfold, Venezuelan officials have condemned the sale as fraudulent. The geopolitical landscape shifted dramatically when U.S. authorities apprehended Venezuelan President Nicolás Maduro on charges of narco-conspiracy, complicating any potential appeals against the court’s decision on Citgo.

As Amber Energy, which is linked to activist hedge fund Elliott Management, anticipates finalizing this deal, observers speculate on the implications for Petty’s Island. Elliott Management, known for its significant political contributions, including funding for Donald Trump’s 2024 campaign, presents an additional layer of complexity to this unfolding scenario.

Despite the legal uncertainties, Citgo has previously aimed to donate Petty’s Island to the New Jersey Natural Lands Trust, an organization dedicated to environmental preservation. However, amidst Citgo’s ongoing ownership disputes and environmental remediation obligations, the timeline for this transfer remains uncertain. Currently, public access to the island is restricted, with plans for its development as an urban nature reserve still on the horizon.

The New Jersey Department of Environmental Protection is tasked with certifying that Petty’s Island meets state cleanup standards before any transfer of title can be realized. To aid in remediation, Citgo has allocated .3 million for addressing hazardous substances on the island.

The eventual outcomes of this situation are pivotal not only for the property itself but also for the communities that look to Petty’s Island as a vital ecological resource. As developments continue to evolve, the delicate balance between environmental stewardship and corporate interests remains at the forefront of discussions surrounding this historically significant land.