The City of Carson has reached a landmark $370 million settlement with Tesoro/Marathon Petroleum, securing significant immediate and long-term funding for the community while strengthening the City's financial position without imposing a new tax on Carson residents.
Under the agreement, Carson will receive $120 million upfront and $250 million over 15 years, providing both immediate funding and a predictable long-term revenue stream of approximately $16.67 million annually beginning in January 2027. This settlement resolves years of litigation and creates new opportunities to invest in community priorities.
The agreement strengthens Carson's finances without a new tax on residents. Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot. Tesoro/Marathon will also continue paying the City's existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments.
Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. Settlement proceeds will go through Carson's public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities.
This settlement marks a significant victory for Carson, ensuring a stable financial future while avoiding the need for additional tax burdens on its residents. The upfront payment provides immediate relief for pressing needs, while the annual payments offer a sustainable source of revenue for years to come.
The agreement also ends a contentious legal battle, allowing the city and Tesoro/Marathon to move forward. By withdrawing the proposed tax measure, Carson demonstrates its commitment to fiscal responsibility and cooperation with industry partners.
For more details, view the full announcement, including downloadable images, bios, and more, here.
