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Lijuan Shattuck
Professor: Sadie Thomas
Salt Lake CC, Math 1210
12/02/2016
Pipeline Project
The U.S. Interior Secretary recently approved drilling of natural gas wells near Vernal, Utah. Your company has begun drilling
and established a high-producing well on BLM ground. They now need to build a pipeline to get the natural gas to their refinery.
While running the line directly to the refinery will be the least amount of pipe and shortest distance, it would require running the
line across private ground and paying a right-of-way fee. There is a mountain directly east of the well that must be drilled
through to run the pipeline due east. Your company can build the pipeline around the private ground by going 13 miles directly
west and then 18 miles south and finally 42 miles east to the refinery (see figure below). Cost for materials, labor, and fees to
run the pipeline across BLM ground is $195,000 per mile.
Cost of drilling through the existing mountain would be a one-time cost of $4,762,000 on top of the normal costs ($195,000 per
mile) of the pipeline itself. Also, the BLM will require an environmental impact study before allowing you to drill through the
mountain. Cost for the study is estimated to be $480,000 and will delay the project by 4 months costing the company another
$65,000 per month.
For any pipeline run across private ground, your company incurs an additional $100,000 per mile cost for right-of-way fees.
Your company has asked you to do the following:
a) Determine the cost of running the pipeline strictly on BLM ground with two different cases:
i)
One running west, south and then east to the refinery.
ii)
One heading east through the mountain and then south to the refinery.
b) Determine the cost of running the pipeline:
i)
The shortest distance across the private ground to the refinery.
ii)
Straight south across the private ground, then straight east to the refinery.
c) Determine the cost function for the pipeline for the configuration involving running from the well across the private
ground at some angle and intersecting the BLM ground to the south and then running east to the refinery. Use this
function to find the optimal way to run the pipeline to minimize cost. Determine the length of pipe that runs across
private land and how far from the refinery it starts running on BLM land. Determine the angle at which your optimal
path leaves the well. Clearly show all work including drawing the pipeline on the figure below. Make it very clear how
you use your knowledge of calculus to determine the optimal placement of the pipeline.
d) Include a computer-generated graph of the optimal cost function, C(x), for this pipeline for any configuration involving
crossing some private ground as well as some BLM ground. Make sure to use the correct domain of the function to
scale your axes appropriately and to label the minimum point.

BLM Groun
18 miles

13 miles

BLM Ground

Private Ground

42 miles - BLM Ground

Write up a report of your finding to submit to your companys CEO. This report should include all steps for any math used to
make determinations asked for above as well as statements as to the costs to be incurred by each scenario. Include any
appropriate figures to make each scenario clear. Label the scenarios as they are labeled above.

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Dear CEO:
The pipeline project near Vernal is making progress as we plan our most cost-effective route. It will be
approximately $, , . . To approve the lowest cost, please review the cost comparisons provided
below.
a) to stay on BLM land. However, we count this as two options as there are two ways around the private
land:
1. running west, south and then east to the refinery (total cost is $14,235,000.)

BLM Ground

BLM Groun
18 miles

13 miles
well

Private Ground
refinery

42 miles - BLM Ground

With a total of 73 miles at a cost of $195,000 per mile on BLM land, this route will cost $14,235,000 in labor material and
fees. ( 73 $ 195,000 = $ 14,235,000)
2. heading east through the mountain and then south to the refinery(total cost is $14,667,000).

BLM Ground

BLM Ground
18 miles

13 miles
well

Private Ground

re

42 miles - BLM Ground

refinery

This option includes $4,762,000 to drill through the mountain plus approximately $480,000 for an environmental
impact study before drilling, setting operations back 4 months. Operational costs are $65,000 monthly. Although
this option is shorter (47 miles from well to refinery), the total cost is $14,667,000. Calculation as below:
($4,762,000 + $480,000 + $65,000 4() + (18 + 42 13) $195,000 =
$14,667,000)

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b) 1) The shortest distance is a direct line from well to refinery over private land(total cost is $10,071,300).

BLM Ground

BLM Ground
18 miles

13 miles
well

Private Ground

re

refinery

42 miles - BLM Ground

This option cost will be about $10,071,300 figured by an additional $100,000 per mile for right-of-way fees, with
just more than 34.14 miles of pipeline. (34.14 ($195,000 + $100,000) = $10,071,300)
18 Miles North to South, (42-13=) 29 Miles East to West, to get length of pipeline as below:
182 + 292 34.14

BLM Ground
18 miles

2)Straight south across the private ground, then straight east to the refinery(total cost is $10,965,000).

13 miles

BLM Ground

well

Private Ground

42 miles - BLM Ground

refinery

This option cost will be about $10,965,000 figured by 18 miles with cost $ 195,000 per mile and an additional
$100,000 per mile for right-of-way fees, and 29 miles with cost$195,000 per mile. Calculation as below:
((18 ($195,000 + $100,000) + (42 13) $195,000 = $10,965,000
c) The lowest cost pipeline plan is to build a pipeline from the well is north by southeast at an angle of 41.4
degrees, which gives us a length of 24 miles with the private ground cost ($295,000/miles), then towards the east
with an angle of 131.4 degrees to the refinery in BLM land with length 13.14 miles with a cost of ($195,000/miles)
. The cost is approximately $, , .

13 miles

BLM Ground

well

Private Ground
18miles

BLM Ground
18 miles

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41.4
90

131.4
13.14

15.86 miles

refinery

42 miles - BLM Ground

13 miles

BLM Ground

well

Private Ground
18miles

BLM Ground
18 miles

The calculation of this plan shows at below:

90

29-

refinery

42 miles - BLM Ground

L=(42 13 )2 + 182

1)Using Pythagoreans identity to find L:

2) Cost along x is ( $195,000 )
3) Total cost of pipeline (x and L) is

and

Cost along () = $295,000 (29 )2 + 182

Calculation shows at below:

Cost(x)=295,000 (29 )2 + 182 + 195,000 , with possibilities 0 29

Finding the derivative of Cost(x) as follows:
() = 295,000

(calculation to be continued in next page)

(29 )
(29 )2 + 324

+ 195,000

Set equation equal to zero and solve for x:

0=

295,000(29 )
(29 )2

+ 324

+ 195,000

295,000(29 ) 2
(195,000)2 = (
)
(29 )2 + 324

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195,0002 324

Result of simplify the function above: (29 )2 = 295,0002 195,0002 =

123201
490

square both sides (we only take positive number): 29 15.86

Therefore 13.14 , we insert value into cost function to calculate the total cost for this plan:
(13.14) = 295,000 (29 13.14)2 + 182 + 195,000 13.14
(15.86) = $9,639,469.893
Solve for L: = (29 13.14)2 + 182 , to get 23.991
Solve for : =

15.86
18

15.86
)
18

= arctan (

41.4

Solve for beta: = 90 + 41.4 = 131.4

Here is the graph of the cost function that shows the minimum values:

Reflection: I have learned many things in this Calculus I course. I havent really used the knowledge in my day to
day life. This project helps me understand better in world in which I live. Its a very good experience. I s feel that I
have problems with memorization. If I can use MATH knowledge in real life more often, I think it also helps me to
solidify my memory and the knowledge that I have gained. I also find that many tools and formulas learned in this
class can be very useful in real life, such as learning about limits, derivatives, max/min problems, etc. One of the
most amazing things is finding the most effective costs like the exercise in this project. To me, this project is fun
and improves not only my mathematics skills but also skills in calculating cost/benefit analysis.