The City of Carson has reached a landmark $370 million settlement with Tesoro/Marathon Petroleum, a move that secures significant immediate and long-term funding for the community while strengthening the city’s financial position without imposing a new tax on residents. The agreement, announced on August 20, 2026, resolves years of litigation and provides a predictable revenue stream for the city.
Under the terms of the settlement, Carson will receive $120 million upfront and $250 million over 15 years, beginning in January 2027. This translates to approximately $16.67 million annually, offering both immediate relief and long-term financial stability. The settlement funds will be directed through Carson’s public budgeting process, with infrastructure improvements and deferred maintenance already identified as potential priorities.
A key aspect of the agreement is that it avoids a new tax on Carson residents. 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 the city retains its current revenue sources while adding the settlement funds.
The settlement also brings an end to the legal battles 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 removes the financial uncertainty and legal expenses that have burdened the city, allowing it to focus on community priorities.
Mayor Lula Davis-Holmes emphasized the significance of the agreement, stating, “This settlement is a victory for Carson residents. It provides the resources we need to invest in our community without asking taxpayers to pay more.” She added that the funds will help address critical infrastructure needs and improve the quality of life for residents.
The settlement is seen as a major win for Carson, a city that has faced financial challenges in recent years. By securing this funding, the city can now plan for long-term improvements while maintaining fiscal responsibility. The predictable annual payments will allow for better budgeting and strategic planning, ensuring that the community benefits for years to come.
Residents have expressed cautious optimism about the settlement, hoping that the funds will be used effectively to address long-standing issues such as road repairs, public safety, and community services. City officials have committed to transparency in how the funds are allocated, with regular updates to the public.
The agreement with Tesoro/Marathon marks a new chapter for Carson, one that promises stability and growth. As the city moves forward, it does so with a stronger financial foundation and a clear path toward achieving its vision of being a thriving, diverse, destination city.
