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 predictable revenue stream for the city.
Under the terms of the settlement, Carson will receive $120 million upfront and $250 million over 15 years, beginning in January 2027. This translates to approximately $16.67 million annually, offering both immediate relief and a stable financial foundation for future planning. The settlement also ensures that Tesoro/Marathon will continue to pay the existing Measure C Oil Industry Business License Tax, with no credits applied against the settlement payments. This dual revenue source is expected to significantly bolster the city's budget.
One of the most notable aspects of the agreement is that it was achieved without imposing a new tax on residents. Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot. This move reflects a commitment to fiscal responsibility while still securing necessary funds for community priorities.
The settlement resolves a protracted legal battle between the city and the oil company. Tesoro/Marathon has agreed to seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the city. This brings closure to a contentious issue and allows both parties to move forward constructively.
Proceeds from the settlement will be allocated through Carson's public budgeting process, with infrastructure improvements and deferred maintenance already identified as potential priority areas. This ensures that the funds are used transparently and effectively to benefit residents and enhance the quality of life in the community.
The agreement comes at a critical time when many cities are facing budget shortfalls and infrastructure challenges. Carson's ability to secure such a substantial settlement without raising taxes demonstrates strong leadership and strategic negotiation. The long-term nature of the payments provides financial stability, enabling the city to plan for the future with confidence.
For more details on the announcement, including downloadable images and bios, please visit the full announcement. This settlement marks a significant milestone for Carson, positioning it for sustainable growth and development. By resolving litigation and securing funding, the city can now focus on implementing projects and services that matter most to its residents.
The implications of this settlement extend beyond immediate financial relief. It underscores the importance of proactive governance and negotiation in addressing fiscal challenges. Carson's approach may serve as a model for other municipalities facing similar disputes with industries. The city's commitment to fiscal prudence and community investment is evident in this agreement, which promises to deliver lasting benefits.
