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Carson, CA Secures $370M Settlement with Tesoro/Marathon, Averts Proposed Tax
• The City of Carson has finalized a $370 million legal settlement with Tesoro/Marathon Petroleum, ending years of litigation.
• Carson will receive $120 million upfront and $250 million paid over 15 years, creating a stable annual revenue stream of roughly $16.67 million.
• The agreement led the city to withdraw a proposed oil refinery tax measure from the November 2026 ballot, preventing a new resident tax.
• Settlement funds will be allocated through public budgeting, with infrastructure and deferred maintenance cited as initial investment priorities.
The City of Carson has decisively strengthened its fiscal foundation through a major legal resolution, announcing a $370 million settlement with Tesoro/Marathon Petroleum. The agreement concludes protracted litigation and provides the Southern California community with substantial immediate and long-term capital without resorting to increased taxation of its residents.
Under the terms of the settlement, Carson will receive an initial payment of $120 million, followed by structured payments totaling $250 million over the next 15 years. This arrangement guarantees the city a predictable annual revenue stream of approximately $16.67 million, commencing in January 2027. Crucially, the resolution prompted the city to formally withdraw a previously proposed oil refinery tax measure from the November 2026 ballot, ensuring the financial burden does not fall on Carson taxpayers. Tesoro/Marathon will also continue its payments under the city’s existing Measure C Oil Industry Business License Tax independently, with no offset against the settlement amount.
This landmark settlement concludes years of legal dispute and establishes a clear pathway for strategic municipal investment. With the litigation now headed for dismissal, and with Tesoro/Marathon forfeiting any claim to attorney fees or costs from the city, Carson can direct the full settlement proceeds toward community priorities. City officials have indicated that funds will be integrated into the standard public budgeting process, with pressing needs like infrastructure upgrades and deferred maintenance already identified as potential focal points. The outcome marks a significant governance achievement, securing vital resources for Carson’s future while stabilizing its financial position.