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. The agreement, announced August 20, 2026, brings an end to years of litigation and provides a stable revenue stream for the city.
Under the settlement, Carson will receive $120 million upfront, with the remaining $250 million paid over 15 years. This translates to an estimated annual payment of $16.67 million beginning in January 2027, offering the city both immediate relief and predictable long-term funding. This financial boost comes without the need for a new tax, as the city has withdrawn its proposed oil refinery tax measure from the November 2026 ballot. Additionally, Tesoro/Marathon will continue to pay the city’s existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments, ensuring an ongoing revenue source.
The settlement resolves litigation between the city and the oil company, with Tesoro/Marathon agreeing to seek dismissal of the tax litigation and to not pursue attorney fees or litigation costs from the city. This clears the path for the city to allocate the funds through its public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. The city’s vision, as stated in its mission, is to become a thriving, diverse, destination city, and this settlement provides the financial means to invest in that future.
The significance of this agreement extends beyond the immediate financial windfall. By avoiding a new tax, Carson demonstrates a commitment to fiscal responsibility while still addressing community needs. The predictable annual payments will allow for long-term planning and investment in essential services and projects. Moreover, ending the litigation removes uncertainty and legal costs, enabling the city and the company to focus on constructive engagement. For residents, this means improved infrastructure and services without an additional tax burden, a win-win for the community and the business sector.
As the city moves forward, the settlement funds will be subject to public input and budgeting, ensuring transparency and community involvement in how the money is spent. This landmark agreement sets a precedent for how municipalities can resolve disputes with major corporations, turning conflict into opportunity for public benefit. With infrastructure as a likely priority, Carson is poised to enhance its quality of life and economic vitality, fulfilling its vision of being a great place to live, work, and play.
