Title 49TransportationRelease 119-73

§15906 Liability of pipeline carriers under receipts and bills of lading

Title 49 › Subtitle SUBTITLE IV— - INTERSTATE TRANSPORTATION › Part PART C— - PIPELINE CARRIERS › Chapter CHAPTER 159— - ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES › § 15906

Last updated Apr 6, 2026|Official source

Summary

Pipeline companies must give a receipt or bill of lading when they take property to move it. The company that issues the paper and any company that delivers the goods are responsible to the person who can claim the property for any real loss or damage that happens while the goods move on a U.S. line or from the U.S. to a neighboring foreign country under a through bill of lading. Not giving the paper does not remove the company’s responsibility. A company that paid the owner can make the company where the loss happened pay it back for what it paid (shown by a receipt or court record) and for reasonable legal costs. You can sue a delivering company in federal or state court where that company operates. A claim must allow at least 9 months to be filed and a lawsuit must allow at least 2 years from the date the carrier gives written notice that part of the claim is denied. An offer to settle or a message from an insurer does not count as a denial unless the carrier or insurer says in writing the claim part is denied, gives reasons, and the insurer says it is acting for the carrier.

Full Legal Text

Title 49, §15906

Transportation — Source: USLM XML via OLRC

(a)A pipeline carrier providing transportation or service subject to this part shall issue a receipt or bill of lading for property it receives for transportation under this part. That carrier and any other carrier that delivers the property and is providing transportation or service subject to jurisdiction under this part are liable to the person entitled to recover under the receipt or bill of lading. The liability imposed under this subsection is for the actual loss or injury to the property caused by the carrier over whose line or route the property is transported in the United States or from a place in the United States to a place in an adjacent foreign country when transported under a through bill of lading. Failure to issue a receipt or bill of lading does not affect the liability of a carrier.
(b)The carrier issuing the receipt or bill of lading under subsection (a) or delivering the property for which the receipt or bill of lading was issued is entitled to recover from the carrier over whose line or route the loss or injury occurred the amount required to be paid to the owners of the property, as evidenced by a receipt, judgment, or transcript, and the amount of its expenses reasonably incurred in defending a civil action brought by that person.
(c)A civil action under this section may be brought against a delivering carrier in a district court of the United States or in a State court. Trial, if the action is brought in a district court of the United States is in a judicial district, and if in a State court, is in a State, through which the defendant carrier operates a line or route.
(d)A pipeline carrier may not provide by rule, contract, or otherwise, a period of less than 9 months for filing a claim against it under this section and a period of less than 2 years for bringing a civil action against it under this section. The period for bringing a civil action is computed from the date the carrier gives a person written notice that the carrier has disallowed any part of the claim specified in the notice. For the purposes of this subsection—
(1)an offer of compromise shall not constitute a disallowance of any part of the claim unless the carrier, in writing, informs the claimant that such part of the claim is disallowed and provides reasons for such disallowance; and
(2)communications received from a carrier’s insurer shall not constitute a disallowance of any part of the claim unless the insurer, in writing, informs the claimant that such part of the claim is disallowed, provides reasons for such disallowance, and informs the claimant that the insurer is acting on behalf of the carrier.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 11707 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

Reference

Citations & Metadata

Citation

49 U.S.C. § 15906

Title 49Transportation

Last Updated

Apr 6, 2026

Release point: 119-73