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 ends years of litigation and creates opportunities to invest in 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. This ensures that the settlement does not replace existing revenue but adds to it.
Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. This removes legal uncertainties and allows both parties to move forward constructively.
Settlement proceeds will go through Carson’s public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This means residents will have a voice in how the funds are allocated, ensuring that the money addresses the most pressing needs of the community.
The settlement is a significant win for Carson, as it provides a substantial financial boost without burdening residents with new taxes. It also signals a cooperative relationship between the city and the company, which could lead to more productive engagements in the future.
For more details, you can view the full announcement, including downloadable images and bios, by clicking [here](https://example.com/full-announcement).
