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 settlement resolves years of litigation and offers the City a stable financial foundation to address community priorities.
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, ensuring the City retains this ongoing revenue source.
The agreement ends years of litigation and creates opportunities 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. This cooperative resolution allows both parties to move forward without further legal expenses.
Settlement proceeds will go through Carson's public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This ensures that the funds are allocated in a transparent manner that aligns with the community's needs and long-term goals.
This settlement marks a significant win for Carson, as it not only provides a substantial financial boost but also demonstrates the City's commitment to fiscal responsibility. By avoiding a new tax, the City maintains its appeal to residents and businesses, while still securing the resources necessary for essential services and improvements.
The City of Carson's vision is to be a thriving, diverse, destination city—a great place to live, work, and play with an unlimited future. This settlement is a crucial step toward realizing that vision, offering the financial stability needed to invest in the community's future without placing an additional burden on taxpayers.
As Carson moves forward, the infusion of funds will enable the City to address critical infrastructure needs, enhance public services, and support initiatives that improve the quality of life for all residents. The predictable annual payments over the next 15 years will allow for strategic planning and sustained investment in the community.
This agreement exemplifies how collaborative problem-solving can yield positive outcomes for all parties involved. By resolving the litigation amicably, Carson and Tesoro/Marathon have set a precedent for future cooperation, benefiting the City's finances and the company's operations in the region.
The settlement is a testament to the City's dedication to prudent financial management and its ability to secure favorable outcomes for its residents. With this significant financial boost, Carson is well-positioned to continue its growth and development, ensuring a bright and prosperous future for its community.
