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, brings an end to years of litigation and provides a stable financial foundation for the city's future.
Under the terms of the settlement, Carson will receive $120 million upfront, followed by $250 million distributed over 15 years. This structure ensures both immediate funding for pressing needs and a predictable long-term revenue stream of approximately $16.67 million annually, beginning in January 2027. The steady inflow of funds will allow the city to plan for major projects and address deferred maintenance without relying on unpredictable revenue sources.
One of the most significant aspects of this agreement is that it strengthens Carson’s finances without burdening residents with a new tax. Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot. This move demonstrates a commitment to fiscal responsibility and avoids additional financial strain on the community. Furthermore, Tesoro/Marathon will continue to pay the City’s existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments. This ensures that the city retains all existing revenue streams while benefiting from the new settlement funds.
The settlement also resolves years of contentious litigation between the city and the oil company. As part of the agreement, Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. This not only saves the city significant legal expenses but also clears the path for a more cooperative relationship moving forward.
The influx of funds will be directed through Carson’s public budgeting process, ensuring transparency and community input in how the money is spent. Infrastructure and deferred maintenance have already been identified as potential priorities. This means that residents could see improvements in roads, public facilities, and other essential services that have been underfunded for years.
This settlement is a major victory for the City of Carson, providing a substantial financial boost that will have a lasting impact on the community. By securing these funds without a tax increase, the city has demonstrated prudent financial management and a focus on the well-being of its residents. The predictable annual payments will enable long-term planning and investment in projects that enhance the quality of life in Carson.
For more details, the full announcement, including downloadable images and bios, can be viewed at the provided link.
