Pipeline Project

Mara Giovanna VanDyke

4 of April of 2018
Dear Mr. CEO,

As per your request, we are planning out our most cost effective route for the Pipeline Project
near Vernal, Utah. I am going to show you step by step of the options we come up with. First, I
analyze the cost of running the pipeline strictly through the BLM land.

1. Determine the cost of running the pipeline strictly on BLM ground with two different cases:
BLM Ground:480,000/ mi
West: 8 mi
South: 16 mi
East: 40 mi

Cost C: C = (west * BLM) + (south * BLM) + (east * BLM)

C = (8 * 480000) + (16 * 480000) + (40 * 480000)
C = 30,720,000

The cost of building a pipeline from West, South and East would be $30,720,000 on BLM ground,
which will cover 64 miles.
 Pipeline Project
Mara Giovanna VanDyke
4 of April of 2018
One heading east through the mountain and then south to the refinery:

Mountain Cost: 4,500,000

Study: 600,000
8 months: 800,000

C = Mountain + Study + Delay + (east * BLM) + (south * BLM)

C = 4,500,000 + 600,000 + 800,000 + (32 * 480,000) + (16 * 480,000)
C = 28,940,000
Using a more direct path, and adding the expenses of drilling into the mountain and the delay that
comes with it, still on BLM ground the cost would be $28,940,000 and will cover 48 miles, which is
cheaper than the first method.

2. ​Determine the cost of running the pipeline:

The shortest distance across the private ground to the refinery:

Private ground: 360,000

Let a = 16 and b = 32

Where c is the total distance across the private ground:

c2 = a2 + b2
c2 = 162 + 32 2
c2 = 256 + 1024
C = √1280 = 16 √5
Cost C:
 Pipeline Project
Mara Giovanna VanDyke
4 of April of 2018
C = (private + BLM) * distance
C = (360,000 + 480,000) * 16 √5
C = 30, 052,753.62
Using the shortest distance across private ground (and taking into account the adding cost of it) the
cost would be $30,052,753.62 and will cover around 36 miles (~35.78).

Straight south across the private ground, then straight east to the refinery:

Cost per mile: private + BLM = 840,000

C= (south * 840,000) + ( east * 840,000)

Recall that straight south then straight east is 40 – 8 = 32 mi

C = (16 * 840,000) + (32 * 480,000)
C = 28,800,000
On this method, the pipeline will be also in private grounds the first 16 miles to the south and 32 miles
on BLM and will cover 48 miles in total, the cost would be $28,800,000.

3. 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.

Set the main formulas (angle and distance):

 Pipeline Project
Mara Giovanna VanDyke
4 of April of 2018

Finding the cost function:

C(x) = 480,000x + 840,000y
C(x) = 480,000 (32 - x) + 840,000 ( √x2 + 256 )
C(x) = 15,360,000 - 480,000x + 840,000 √x2 + 256

Derivative of C(x) cost:

−1/2
C(x) = -480,000 + 840,000 (½) ( x2 + 256 ) (2x)

1/2
C’(x) = -480,000 ( x2 + 256 ) + 840,000x

Find minimum value:

1/2
-480,000 ( x2 + 256 ) + 840,000x = 0

Find angle:

Find distance:

Find minimum cost:

C= 840,000 (19.5 mi) + 480,000(20.859 mi)
 Pipeline Project
Mara Giovanna VanDyke
4 of April of 2018

In Conclusion by running the pipeline at an angle across the private land then across the BLM land is
the most cost effective option.

4. 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.

Reflection:

By taking Calculus 1 I have been able to learn a lot more about how all the math courses that I have
taken are part of the real life world.As I am learning calculus I find that it is very useful tool. I am going
into Architecture and not only do I need to know how to draw and design buildings, I need to also
know how to make functional and structural buildings for the clients and residents. With calculus I can
learn how to estimate the cost of the project, also find out how to build it. ​Right know my husband and
I have bought a condo and we had to find out how much paint, carpet, light fixtures and other stuff
cost, because we have a budget and we haven’t been wanting to spend more than the budget.