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, resolves years of litigation and provides a stable revenue stream for the city.
Under the settlement, 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 financial infusion is expected to bolster the city's budget and support essential services and infrastructure projects.
The agreement also allows Carson to withdraw its proposed oil refinery tax measure from the November 2026 ballot, avoiding a potential tax increase on residents. Tesoro/Marathon will continue paying the City's existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments, ensuring ongoing revenue from the company.
The settlement ends years of litigation between the city and the oil company. Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. This resolution saves the city from further legal expenses and allows both parties to move forward.
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 transparently and in line with community needs. The city has emphasized that the settlement will be used to enhance the quality of life for residents and support long-term growth.
For more details, view the full announcement at [Reportable](https://reportable.net) or visit the City of Carson's official website. The settlement marks a significant milestone for Carson, providing financial stability and opportunities for investment in community priorities.
