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Carson council unanimously approves $370 million settlement with Tesoro, rescinds refinery tax ballot measure
Summary
The City of Carson on Aug. 11 approved a settlement with Tesoro and related entities totaling $370 million on paper, authorized the mayor to sign the agreement and confirmed the county rescinded a proposed refinery tax measure that will not appear on the Nov. 3, 2026 ballot.
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The City of Carson council voted unanimously Aug. 11 to approve a tax payment and settlement agreement with Tesoro Refinery and Marketing Company, LLC and Tesoro Logistics Operational, LLC, authorizing the mayor to execute the deal after the meeting.
City attorney (speaker 8) told the council that the agreement, as presented, included a $120,000,000 component to resolve outstanding tax litigation and a series of business payments spread over 15 years. "The Carson Oil Refinery Tax for city services public safety and environmental cleanup measure ... has officially been rescinded and will not appear on the 11/03/2026 ballot," the city attorney read from an Elections Coordination Unit email confirming the rescission.
Council members praised the negotiated settlement as necessary to address pressing infrastructure and fiscal needs. Mayor (speaker 1) said the earlier 4–1 vote to place a ballot measure had given the council negotiating leverage that produced the current agreement and stressed the city’s immediate infrastructure backlog. "In 1 year alone, we have a $159,000,000 in infrastructure work that needed to be ... done," the mayor said.
The clerk conducted a roll call and announced the vote was unanimous; the motion carried. Council members then planned for a signing after the meeting and a special meeting the next day to consider a charter amendment.
The city attorney also explained that Tesoro’s counsel would file for dismissal of the litigation and, after a remand from the Supreme Court, the parties would seek a dismissal with prejudice in the trial court.

