The coalition argues that now is the perfect time for New Jersey to accept the proposed gift from Citgo Petroleum, because a North Carolina company that had proposed a major redevelopment project on the island recently dropped its plans, citing poor economic conditions in the national housing market.

In addition, the state is in such dire financial straits that it is considering closing some state parks to save money, which means there's scant funding available to acquire new open space.

Citgo, the American subsidiary of Venezuela's state-owned oil company, offered the 392-acre Petty's Island, which sits in the Delaware River between Camden and Philadelphia, to New Jersey in 2004. At the time, Gov. Jim McGreevey declined the offer. Environmental groups claimed the state was simply pandering to a politically connected developer, Cherokee Investment Partners of Raleigh.

"We should be celebrating today the fourth anniversary of Petty's Island as a park and nature preserve," said Jeff Tittel, executive director of the state chapter of the Sierra Club. "Instead, we're asking Gov. Corzine, 'When are you going to step up and save Petty's Island from development?' "

State Department of Environmental Protection Commissioner Lisa Jackson said more than two years ago that she would investigate the situation, but has yet to announce her findings or recommendations. Jackson's office did not return a call for comment yesterday.

Jim Gardner, a spokesman for Corzine's office, said "discussions are ongoing about the island's final use. No final decisions have been made. The governor is committed to the island's cleanup before any decisions are made about its final use."

In addition to the island, site of a former refinery and petroleum-storage operations, Citgo has offered New Jersey $2 million to endow the management of the property as a wildlife refuge and park.

Environmental groups said contrary to claims that Citgo was trying to escape its responsibilities to clean up the island, the company has gone above and beyond its duties.

Petty's Island is home to Camden County's only pair of nesting American bald eagles, environmentalists say.

Pennsauken Mayor Jack Killion could not be reached for comment yesterday. In an interview in the Courier-Post , township Committeeman Rick Taylor said Pennsauken hoped to find another company to redevelop the riverfront.

Cherokee also holds a majority stake in EnCap Golf Holdings, which has been plagued by financial problems and allegations of improper political influence in its bid to redevelop hundreds of acres at the Meadowlands in northern New Jersey.

"This Earth Day, now more than ever is the time to just say yes," said David Pringle of the New Jersey Environmental Foundation. "At a time when we're running out of money for open space, do not have the money to operate our parks, there's a housing slump, and the developer has thankfully left the scene, Citgo is still not only offering the land to New Jersey for free after it's cleaned up, but also a $2 million stewardship fund to help pay for the cost of maintaining the new park."