Carson Secures $370 Million Tesoro/Marathon Settlement, Boosting Finances Without New Taxes

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 on August 20, 2026, ends years of litigation and provides a substantial revenue stream for the city.

Under the terms of the settlement, 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 financial infusion is expected to bolster the city's budget and support community priorities without burdening residents with additional taxes.

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. This ensures that the city maintains its current revenue sources while benefiting from the new settlement.

The settlement resolves ongoing tax litigation between the city and the company. Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. This move allows both parties to move forward without the burden of continued legal battles, freeing up resources for more productive uses.

Settlement proceeds will go through Carson's public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This transparent approach ensures that the funds are allocated to areas that will most benefit the community, aligning with the city's vision of being "A thriving, diverse, destination city - a great place to live, work and play with an unlimited future."

The City of Carson's mission is "To serve and enhance the quality of life of residents and businesses through engagement and the efficient delivery of exceptional services." This settlement is a testament to that mission, as it provides the financial resources necessary to improve public services and infrastructure without imposing additional financial burdens on residents.

The agreement marks a significant victory for Carson, demonstrating the city's ability to negotiate favorable outcomes that benefit its community. With the settlement in place, Carson can now focus on long-term planning and investment in key areas that will enhance the quality of life for its residents and businesses.

For more details on the announcement, including downloadable images and bios, click here: full announcement. The settlement not only resolves past disputes but also paves the way for a more stable and prosperous future for Carson.