Definition - What does Common Carrier mean?
A Common Carrier is a person or a company that transports goods to various places for use in order to revolutionize the industries and is possibly able to take responsibility if there is any mishappening or loss of goods during the transit. In the oil and gas industry, pipelines, railroads, trucks and vessels (oil and gas cargo ships) are used to transport petroleum products to various places and industries.
Petropedia explains Common Carrier
In the oil and gas related operations of any country, a proper act has to be enacted in the country’s oil and natural gas regulation policies which talks about “Common Carriers”. A person is said to be a common carrier if:
- This person has BOOM (Build, Own, Operates and Manage) the pipelines.
- The pipeline operated by this person is used to transport crude oil, petroleum products and natural gas.
- This person engages in any type of contractual business or trade of petroleum with any other entity.
- The person has developed the spur lines to connect each and every areas of the state.
- Owns and operates either wholly or partially.