diff --git a/lib/foreman/cli.rb b/lib/foreman/cli.rb
index 8cdaf57..85498dc 100644
--- a/lib/foreman/cli.rb
+++ b/lib/foreman/cli.rb
@@ -79,14 +79,15 @@ private ######################################################################
   end
 
   def engine
-    root = File.expand_path(File.dirname(procfile))
-    env = File.expand_path(File.join(root, ".env"))
-    @engine ||= Foreman::Engine.new(procfile, options.merge({:app_root => root,
-                                                             :env => env}))
+    @engine ||= Foreman::Engine.new(procfile, options)
   end
 
   def procfile
-    options[:procfile] || "Procfile"
+    case
+      when options[:procfile] then options[:procfile]
+      when options[:app_root] then File.expand_path(File.join(options[:app_root], "Procfile"))
+      else "Procfile"
+    end
   end
 
   def error(message)
diff --git a/lib/foreman/engine.rb b/lib/foreman/engine.rb
index 7ed568f..34b96f9 100644
--- a/lib/foreman/engine.rb
+++ b/lib/foreman/engine.rb
@@ -22,10 +22,12 @@ class Foreman::Engine
 
   def initialize(procfile, options={})
     @procfile  = Foreman::Procfile.new(procfile)
-    @directory = options[:app_root]
+    @directory = options[:app_root] || File.expand_path(File.dirname(procfile))
     @options = options.dup
-    @environment = read_environment_files(options[:env])
     @output_mutex = Mutex.new
+
+    @options[:env] ||= default_env
+    @environment = read_environment_files(@options[:env])
   end
 
   def start
@@ -216,4 +218,10 @@ private ######################################################################
 
     environment
   end
+
+  def default_env
+    env = File.join(directory, ".env")
+    File.exists?(env) ? env : ""
+  end
+
 end
diff --git a/spec/foreman/cli_spec.rb b/spec/foreman/cli_spec.rb
index 405b8a2..4473330 100644
--- a/spec/foreman/cli_spec.rb
+++ b/spec/foreman/cli_spec.rb
@@ -34,6 +34,15 @@ describe "Foreman::CLI", :fakefs do
         subject.start("alpha")
       end
     end
+
+    describe "with an alternate root" do
+      it "reads the Procfile from that root" do
+        write_procfile "/some/app/Procfile"
+        mock(Foreman::Procfile).new("/some/app/Procfile")
+        mock.instance_of(Foreman::Engine).start
+        foreman %{ start -d /some/app }
+      end
+    end
   end
 
   describe "export" do
diff --git a/spec/foreman/engine_spec.rb b/spec/foreman/engine_spec.rb
index a7e8516..b070d42 100644
--- a/spec/foreman/engine_spec.rb
+++ b/spec/foreman/engine_spec.rb
@@ -49,6 +49,14 @@ describe "Foreman::Engine", :fakefs do
     end
   end
 
+  describe "directories" do
+    it "has the directory default relative to the Procfile" do
+      write_procfile "/some/app/Procfile"
+      engine = Foreman::Engine.new("/some/app/Procfile")
+      engine.directory.should == "/some/app"
+    end
+  end
+
   describe "environment" do
     before(:each) do
       write_procfile
@@ -97,6 +105,15 @@ describe "Foreman::Engine", :fakefs do
       engine.environment.should == {"FOO"=>"qoo"}
       engine.start
     end
+
+    it "should be loaded relative to the Procfile" do
+      FileUtils.mkdir_p "/some/app"
+      File.open("/some/app/.env", "w") { |f| f.puts("FOO=qoo") }
+      write_procfile "/some/app/Procfile"
+      engine = Foreman::Engine.new("/some/app/Procfile")
+      engine.environment.should == {"FOO"=>"qoo"}
+      engine.start
+    end
   end
 
   describe "utf8" do