[Document title] | Cody Farnsworth

To: C.E.O

Subject: Natural Gas Pipeline

Purpose: To calculate optional routes for the gas pipeline and determine the most
cost effective route.

Report: The total price of four different pipeline routes have been calculated
based on distance and the costs associated with laying pipe along each
route. Influential factors were normal cost per mile, drilling through a
surrounding mountain, obligatory studies, private land fees and time
delay.

Findings: Scenarios one and two are the middle ground as far as pricing is
concerned. They require the most distance to be traveled which should
be factored in to long term cost. Scenario three is the most direct route,
but it is by far the most expensive plan. Scenario four minimized cost for
the pipeline and saves $100,000 compared to the next lowest option.

Recommendation: Based on the model built to minimize cost, the pipeline should follow the
route outlined in scenario four. Despite it not being the shortest distance
overall, it will save the company $100,000. This is accomplished by
cutting through the private ground on an angle for 6.25 miles and then
turning directly east for 16.25 to the refinery.
[Document title] | Cody Farnsworth




Scenario 1: Cost of running pipeline strictly along BLM ground
Route: East for 20 miles through the mountain and then directly south for five miles to the refinery
Cost: 25 miles at $300,000/m + $500,000 (Drill) + $100,000 (study) + $150,000 (delay) =$8,250,000
Scenario 2: Cost of running pipeline strictly along BLM ground
Route: Run west then south then east to avoid the mountain and private ground.
Cost: 27 miles at $300,000/m =$8,100,000

Scenario 3: Cost of running pipeline the shortest distance (100% private ground)
Route: Run from well to refinery in a straight line.
Cost: Approximately 20.62 miles at $500,000/m =$10,307,764

[Document title] | Cody Farnsworth


L^2 = 5^2 + 3.75^2
L= 6.25
Learning calculus has been enjoyable because of its real world applications. Before calculus, there
were very few ideas presented in math classes that stood out to me as something I would apply later
on outside of class. In particular, I find the idea of rate of change most useful so far. Finding velocity
and acceleration functions from a position function is a valuable tool. The same can be said for
finding the maxima and minima of a function as this exercise demonstrates.
[Document title] | Cody Farnsworth



Optimal Pipeline Route
16.25
(3.75, 8000000)
In order to minimize cost, the pipeline should run south east from the well for 6.25
miles through the private ground. It will then leave the private ground at a point
16.25 miles due west of the refinery and continue on a straight course as illustrated
in the graphic above.
The graph below shows the cost function. Notice its minima is 8-million. This occurs
when the lateral distance east of the well is 3.25 miles
Graph of Cost Function