Carson Secures $370 Million Tesoro/Marathon Settlement, Boosting City Finances Without New Taxes

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, marks the end of years of litigation and provides a stable revenue stream for the city.

Under the terms of 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 community priorities.

Following the settlement, the City 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 maintains its current revenue sources while adding the new settlement funds.

The agreement resolves pending tax litigation, with Tesoro/Marathon agreeing to seek dismissal of the case and not pursue attorney fees or litigation costs from the City. Settlement proceeds will be allocated through Carson's public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This investment is poised to enhance the quality of life for residents and support local businesses.

The settlement is a significant win for the City of Carson, which has long sought to secure fair compensation from the oil industry operating within its borders. By avoiding a new tax, the city demonstrates fiscal responsibility while still addressing critical needs. The predictable annual payments will allow for better long-term planning and investment in community assets.

For more details, the full announcement is available at Building Texas. The city's vision is to be a thriving, diverse, destination city, and this settlement provides the financial foundation to pursue that vision.