On December 23, 1994, the United States (on behalf of NOAA, U.S. Department of the Interior (DOI), the Department of Transportation and the National Pollution Fund), the Washington Department of Ecology and the Makah Indian Tribe entered into a settlement with the Maruha Corporation and the Japan Ship Owners' Mutual Protection and Indemnity Assn. (the owners and the insurers of the TENYO MARU), Tianjin Ocean Shipping Co., the China Ocean Shipping Co. and the United Kingdom Mutual Steam Ship Assurance Assn. (Bermuda) Ltd. (the owners, the operators and the insurers of the TUO HAI). The agreement covered claims by the United States, the State of Washington and the Makah Indian Tribe for oil removal costs, natural resource damages and civil penalties arising from the oil spill.

Under the settlement, the companies agreed to pay a total of $9 million (over and above approximately $2.4 million in removal costs previously paid). Of the total paid, $500,000 went to pay a civil penalty assessed by the U.S. Coast Guard to the Maruha Corporation, $3,000,000 went to reimburse oil removal costs, $340,028 was paid to reimburse damage assessment costs incurred by the Trustees, and the balance ($5,159,972 plus interest) was allocated solely for the purpose of restoring, rehabilitating, replacing or acquiring the equivalent of injured natural resources.