Carson Secures $370M Settlement with Tesoro/Marathon, Boosts City Finances Without New Taxes

The City of Carson has reached a landmark $370 million settlement with Tesoro/Marathon Petroleum, resolving years of litigation and securing substantial funding for the community without imposing a new tax on residents. As part of the agreement, Carson will receive $120 million upfront and $250 million over 15 years, providing an immediate infusion of capital and a predictable long-term revenue stream of approximately $16.67 million annually starting in January 2027. This financial boost comes after the City withdrew its proposed oil refinery tax measure from the November 2026 ballot, a move that would have placed an additional burden on residents. Tesoro/Marathon will also continue paying the existing Measure C Oil Industry Business License Tax, with no credits against the settlement payments, ensuring ongoing revenue for the City.

The settlement not only ends costly litigation but also opens the door for Carson to invest in community priorities. Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City, freeing up resources for public benefit. The proceeds from the settlement will be allocated through Carson's public budgeting process, with infrastructure and deferred maintenance already identified as key areas of focus. This agreement strengthens the City's financial position, allowing for improvements that enhance the quality of life for residents and businesses alike.

To view the full announcement, including downloadable images and bios, click here. The City of Carson, guided by its vision of being a thriving, diverse destination city, is committed to serving its community through efficient delivery of exceptional services. This settlement marks a significant step forward in achieving that mission, ensuring a stable financial future without additional tax burdens on its residents.