Grails war command doesn't set the environment

Grails war command doesn't set the environment

I run an app using embedded container using grails run-app
-Dgrails.env=myenv and it works fine. I then do grails war
-Dgrails.env=myenv deploy it on a Tomcat 6 server and it doesn't work. I
get a bunch of log4J errors that go away once I add log4j jars to Tomcat
lib's directory. The lo4j errors now go away. I am left with:
INFO: Deploying web application archive qkr2.war
Sep 7, 2013 11:09:54 PM org.apache.catalina.core.StandardContext start
SEVERE: Error listenerStart
Sep 7, 2013 11:09:54 PM org.apache.catalina.core.StandardContext start
SEVERE: Context [/mk2] startup failed due to previous errors
But there are no previous errors. So I haven't a clue what could be wrong.
Or what to do next. Any tips?
Thanks