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 bolstering the city's financial standing without imposing new taxes on residents. The agreement, announced on August 20, 2026, sees Carson receive $120 million upfront and an additional $250 million distributed over 15 years, providing both immediate capital and a predictable revenue stream of approximately $16.67 million annually starting in January 2027.
This settlement is a major financial win for Carson, as it resolves years of litigation between the city and the oil giant. Under the terms, Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the city. Crucially, the company will continue paying the existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments. This ensures that the city retains its established revenue sources while gaining new funds.
In light of the settlement, Carson has withdrawn its proposed oil refinery tax measure from the November 2026 ballot, a decision that aligns with the city's commitment to fiscal responsibility without adding burdens to its residents. The settlement proceeds will be channeled through Carson's public budgeting process, with infrastructure improvements and deferred maintenance already identified as potential priorities. This funding could address long-standing needs in the community, enhancing quality of life and supporting local businesses.
The announcement highlights the city's vision to be 'a thriving, diverse, destination city - a great place to live, work and play with an unlimited future,' and its mission to 'serve and enhance the quality of life of residents and businesses through engagement and the efficient delivery of exceptional services.' This settlement is a step toward realizing that vision by providing financial stability and resources for community investment.
For business owners and residents in the Long Beach and Carson area, this settlement signals a positive economic outlook. The influx of funds can lead to improved public infrastructure, which is vital for local commerce and daily life. Moreover, the certainty of a long-term revenue stream allows the city to plan for the future without the uncertainty of litigation or new taxes. This development underscores the importance of negotiation and collaboration between public entities and private corporations, setting a precedent for how such disputes can be resolved beneficially for all parties involved.
The settlement also relieves the city of legal burdens, freeing up resources and attention for community-focused initiatives. As Carson moves forward, the funds from this agreement are expected to play a pivotal role in shaping the city's growth and development, making it a more attractive place for businesses and residents alike. The impact of this settlement will be felt for years to come, as Carson leverages these resources to build a stronger, more resilient community.
