Shaun Fallis and Jordan Gale

1210 Pipeline Project

Spring 2017
To Whom It May Concern,

The following documentation features a list of possible scenarios regarding the development and

construction of the proposed oil pipeline. Included with each scenario is a detailed analysis of the cost

for development, complete with diagrams and the according mathematic calculations.

Warmest Regards,

Shaun Fallis and Jordan Gale

 Scenario 1

8 miles
BLM
Ground
BLM
Ground
Private Ground
16 miles

40 miles - BLM Ground

In Scenario 1, the pipeline is being run 8 miles west before going south on BLM property. From there the

pipeline goes 40 miles east to reach the refinery. The cost for running the pipeline Is approximately

$480,000 per mile. This path avoids both the mountain to the east of the drilling site and the private

property between the drilling site and the refinery.

The total distance covered by the pipeline in this scenario is 64 miles. At the cost of $480,000 per mile,

that brings the total estimated cost of the pipeline construction to $30,720,000.
Scenario 2

8 miles
BLM
Ground BLM
32 miles - BLM Ground Ground

Private Ground 16 miles

In Scenario 2, the pipeline travels via tunnel through the mountain directly east of the drilling site and

then south to the refinery. Because the pipeline is still being constructed on BLM property, the same

cost of $480,000 per mile applies. In this scenario, there is a one-time fee of $4,500,000 for tunneling

through the mountain. Additionally, there is a $600,000 charge for an environmental study that will

gauge the impact of drilling through the mountain. The study will delay the project by 8 months, at an

estimated financial loss of $100,000 per month.

The total distance covered by the pipeline is 48 miles in this scenario, which significantly reduces the

pipeline length. It is worth noting that even with the costs associated with drilling a tunnel through the

mountain, the total cost for Scenario 2 is significantly less expensive with a total of $28,940,000.
 Scenario 3

8 miles
BLM
Ground
BLM 35.78 miles
Ground
Private Ground
16 miles

40 miles - BLM Ground

In Scenario 3 the pipeline travels southeast across private property, which allows the pipeline to avoid

the mountain. Crossing the private property also reduces the distance of the pipeline considerably.

Running the pipeline across the private property introduces a right-of-way fee of $360,000 per mile in

addition to the standard operating cost of $480,000 per mile. This bring the total cost to $840,000 per

mile. Using Pythagorean theorem , it is possible to determine the distance that the pipeline would

travel across the private property.

By plugging this value into our scenario, we are able to derive the following equation:
 Scenario 3 has the shortest total length of pipeline at 35.78 miles, however the per mile cost is

significantly higher due to the fees for building across the private property. The total cost of Scenario 3 is

$30,055,200. This puts the total cost between that of Scenarios 1 and 2.

Scenario 4

8 miles
BLM
Ground
BLM Private Ground
Ground
16
miles

32 miles - BLM Ground

Scenario 4 entails constructing the pipeline so that it crosses the private property south for 16 miles and

then runs 32 miles east across BLM property toward the refinery. The distance across the private

property will be subject to the additional $360,000 right-of-way fee, whereas the remaining 32 miles will

cost the standard $480,000 per mile rate.

 Because the pipeline travels a short distance across private property, the costs associated with

backtracking to the west is removed. Scenario 4 has the lowest total cost at $28,800,000.

General Scenario

While all of the scenarios listed above refer to very specific situations, there is a cost function that can

be employed to calculate a route in any number of generalized scenarios.

Where X = the number of miles:

The following diagram will provide an explanation for how this function was derived.

8 miles
BLM
Ground
BLM
Ground Y
Private Ground
16 miles
X

32 - X miles - BLM Ground

 - All miles covered on segment Y will fall under the cost formula:

- All miles covered on 32 - X will fall under the cost formula:

- To solve for Y in terms of X, use the Pythagorean Theorem ( ):

So,
-
Replacing Y in the first formula creates the following:

-
And finally, the total-cost function is created by combining the two formulas:

Optimal Route Calculations

With the cost function created its possible to use Calculus to find the most optimal route for the

construction of the pipeline. The optimal route will result in the lowest possible cost. To achieve this, the

derivative of the cost function (C(X)) must be calculated.

 In order to determine the X value that will produce the lowest possible cost, the derivate of the cost

function must be set so that C(X) = 0 and then solved for X.

X = +/-11.14, because measurements must be positive, use +11.14

With this calculated X value, the corresponding Y value can be determined by substituting the X value

into the Pythagorean theorem as follows.

So, y = 19.496
 With this information it is now possible to determine the most optimal route of construction from the

drilling site to the refinery.

Optimal Route Picture

8 miles
BLM
Ground
Angle 54.53
BLM
Ground 19.496 miles - Private
Ground
16 miles

20.86 miles - BLM Ground

The diagram above shows that if the pipeline travels southeast at a 54.53 angle, it will travel 19.46

miles across private ground and 20.86 miles across BLM property. The angle of travel was derived by

using the tangent trigonometric function. The calculated value is an alternate interior angle to that of

the angle of travel for the pipeline.

Z = 54.53
The optimal route of travel can be determined by substituting the calculated value for X into the cost

function.

So the cost of development for this path is approximately $26,389,560

The curve for the cost function C(x) is shown below with a wide range of X values (Distance) and their

corresponding Y values (Cost).

Conclusion

Considering all available options, the most optimal scenario will entail building the pipeline at a 54.53

angle southeast across 19.496 miles of private land and then moving due east for 20.86 miles across

BLM property to the refinery. This will result in the lowest possible cost for the project. Barring any

unforeseen difficulties with this route, the general cost function provided can be used to calculate the

cost of any route as needed.

Calculus Reflection
By requiring the employment of skills and knowledge gained over the course of our academic careers in

mathematics, as well as providing the fundamentals for the development of new skills; Calculus I has

provided a real world context for the application of mathematics. Within the parameters of this project,

it is very apparent that optimization in particular is a critical skill. Minimization and maximization can be

employed in any number of general scenarios, especially because they help to form an analytical and

logical lens through which any project or undertaking can be viewed.

As passionate musicians with an interest in building, using, sharing, and selling our own equipment,

having an understanding of Calculus in regard to electrical engineering, harmonics, and acoustics will

prove to be vital. Being able to intelligently manipulate sound, which is nothing but sinusoidal waves,

will require an understanding of change and how these waves will behave under specific conditions.

Skills developed in Calculus will undoubtedly prove instrumental in these endeavors. Although we

havent delved into those areas yet, and some of them fall under the realm of Physics (which makes

heavy usage of mathematics), we look forward to increasing our understanding of these concepts via

future Calculus classes.

I dont think we had any doubts to begin with about Calculus having its uses in the real world, but this

class certainly solidified the notion.