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 influx of funds is expected to bolster the city's budget and support community priorities.
The settlement ends years of litigation between the city and the oil company. In exchange, Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the city. This resolution allows both parties to move forward and focuses on future collaboration.
Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot. The agreement ensures that Tesoro/Marathon will continue paying the city’s existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments. This maintains a steady revenue source while the new settlement funds provide additional financial security.
The settlement proceeds will go through Carson’s public budgeting process, ensuring transparency and community input. Infrastructure and deferred maintenance have already been identified as potential priorities for the funds. This investment is expected to improve public facilities, roads, and other essential services, enhancing the quality of life for residents.
The announcement underscores Carson's commitment to financial prudence and community development. By avoiding a new tax, the city demonstrates fiscal responsibility while still addressing long-term needs. The predictable annual payments offer a stable revenue stream that can be planned for in future budgets, reducing uncertainty and enabling strategic investments.
This settlement is a significant win for Carson, as it provides substantial resources without burdening taxpayers. The funds will allow the city to address critical infrastructure needs and other community priorities, contributing to the vision of Carson as a thriving, diverse destination city. The agreement also resolves prolonged legal disputes, saving time and resources that can now be redirected toward positive community outcomes.
For more details on the announcement, including downloadable images and additional information, click here. The city encourages residents to stay informed about how these funds will be utilized through the public budgeting process.
