The City of Carson has reached a landmark $370 million settlement with Tesoro/Marathon Petroleum, a move that significantly bolsters the city's financial standing and funds community priorities without imposing new taxes on residents. The agreement, announced today, resolves years of litigation and provides both immediate and long-term revenue.
Under the terms, Carson will receive $120 million upfront and an additional $250 million paid over 15 years, beginning in January 2027. This structured payout ensures a predictable annual revenue stream of approximately $16.67 million, allowing the city to plan for future investments and infrastructure needs. The settlement also includes the withdrawal of Carson's proposed oil refinery tax measure from the November 2026 ballot, a direct result of the agreement.
Importantly, Tesoro/Marathon will continue paying the city's existing Measure C Oil Industry Business License Tax, with no credits applied against the settlement payments. This dual revenue source strengthens Carson's financial resilience. The settlement also ends legal disputes, with Tesoro/Marathon agreeing to dismiss the tax litigation and waive any claims for attorney fees or litigation costs against the city.
City officials emphasize that the settlement proceeds will be allocated through Carson's public budgeting process, with infrastructure improvements and deferred maintenance already identified as potential funding priorities. This ensures that the funds directly benefit residents and enhance the quality of life in the community.
The announcement highlights Carson's commitment to fiscal responsibility and strategic planning. By securing this settlement, the city avoids the need for new taxes while securing a stable financial future. The agreement represents a collaborative resolution between the city and Tesoro/Marathon, fostering a positive relationship moving forward.
For more details, view the full announcement at Carson City News.
