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Pipeline Transportation Services Agreement

Pipeline Transportation · NAICS 486 · Transportation Services Agreement

This Pipeline Transportation Services Agreement (TSA) is the contract that governs the movement of crude oil, refined products, or other liquid hydrocarbons through a pipeline. Unlike truck or rail transport, pipeline shipments involve unique considerations: long-term capacity commitments, strict quality specifications, and regulatory oversight by agencies like FERC and PHMSA. This agreement ensures that both the pipeline operator (Carrier) and the shipper understand their obligations regarding nominations, volumes, tariffs, and liability. Use this document to establish a clear, enforceable framework for your pipeline transportation relationship, reducing the risk of disputes and ensuring compliance with industry standards.

When you need this document

When a shipper wants to secure firm or interruptible capacity on a crude oil or refined products pipeline.
When a pipeline operator needs a standardized contract for multiple shippers with varying product types.
When replacing a verbal or letter-of-intent arrangement with a formal, long-term transportation agreement.
When a shipper is moving hazardous liquids and needs to allocate liability for environmental incidents.
When a pipeline is expanding and needs new shippers to commit to minimum volume guarantees.

What the generated draft includes

Parties and Definitions
Transportation Service and Tariff Reference
Term and Termination
Minimum Volume Commitment and Deficiency Charges
Nomination and Scheduling Procedures
Quality Specifications and Testing
Liability, Indemnification, and Insurance
Force Majeure and Governing Law

Frequently asked questions

What is the difference between a pipeline transportation agreement and a tariff?

A tariff is the published rate and rules for transportation on a specific pipeline, often filed with FERC for interstate lines. The transportation agreement references the tariff and incorporates its terms, but the agreement can include negotiated commitments like minimum volumes and term length.

Why does the agreement include quality specifications?

Pipelines are batch systems; mixing incompatible products can cause contamination, safety hazards, or refinery processing issues. Quality specs ensure the product meets the pipeline's standards, protecting the carrier and other shippers.

Do I need a lawyer to review this agreement?

This draft is a starting point. Because pipeline transportation is heavily regulated, especially for interstate lines, you should have an attorney with FERC and PHMSA expertise review the agreement before signing.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.