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 structure ensures the City can plan for future investments with a stable income source, enhancing its fiscal stability.
The settlement also resolves years of litigation between the City and Tesoro/Marathon, eliminating legal uncertainties and costs. Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City, allowing the settlement funds to be directed entirely toward community benefit.
Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot, fulfilling the City’s commitment to avoid imposing new taxes on residents. Tesoro/Marathon will continue paying the City’s existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments, ensuring the City retains all existing revenue streams.
The settlement proceeds will go through Carson’s public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This means residents can expect improvements to roads, public facilities, and other essential services, enhancing the overall quality of life in the community.
The agreement underscores Carson’s commitment to fiscal responsibility and strategic planning. By securing a substantial financial settlement without burdening taxpayers, the City is positioning itself for long-term growth and prosperity. The predictable annual payments will allow for multi-year budget planning, ensuring that community needs are met consistently.
This settlement is a win-win for Carson and Tesoro/Marathon, as it ends contentious litigation and provides the City with resources to invest in its future. The City’s vision of being “a thriving, diverse, destination city” is supported by this financial boost, which will help fund projects that make Carson a great place to live, work, and play.
For more details, view the full announcement at [Reportable](https://reportable.net) and [City of Carson](https://carsonca.gov).
