Name:

Umalbnin Frelund
Class: Math1210
Subject: Pipeline Project
Date: April 20, 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 in order to run the pipeline due east. Your company can build
the pipeline around the private ground by going 8 miles directly west and then 16
miles south and finally 40 miles east to the refinery (see figure below). Cost for
materials, labor and fees to run the pipeline across BLM ground is $480,000 per
mile.
Cost of drilling through the existing mountain would be a one-time cost of
$4,500,000 on top of the normal costs ($480,000 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 $600,000 and will
delay the project by 8 months costing the company another $100,000 per month.
For any pipeline run across private ground, your company incurs an additional
$360,000 per mile cost for right-of-way fees.
a) Determine the cost of running the pipeline strictly on BLM ground with
two different cases:
Running west, south, and then east to the refinery.
(64 miles)($480,000 cost/mile)= $30,720,000
Heading east through the mountain and then south to the refinery
Additional costs=(4,500,000 Mountain Drilling+ 600,000 EPA Study+
(100,000*8) The delaying cost for eight months)= $5,900,000

(48 miles)($480,000/mile)+(5,900,000) = $28,940,000

b) Determine the cost of running the pipeline the shortest distance
The shortest distance to the Refinery:
322 + 162 = d2 d = 35.78 miles
Cost per mile= $480,000 per mile for pipeline + $360,000 per mile for right-ofway
= $840,000
$840,000*35.78= $30,055,2001
Going straight south through private ground:
Cost=(16 miles*

!"####
!"#$ )+

(32 miles*

$"#$$$$
!"#$

) = $28,800,000

c) Determine the optimal place to run the pipeline to minimize costs.

Cost=(

$"#$,!!!
!"#$

) (y) +(32-x) (

$"#$,!!!
!"#$

y= ! + 16! = ! + 256
Cost=
Cost=
Cost=

$"#$,!!!

x + 256

!"#$
$"#$,!!!

x ! + 256

!"#$
$"#$,!!!"

!! !!"#!"#$%

$"#$,!!!"
!! !!"#!"#$%

!
!

$"#,!"#,!!!
!"#$

2x +

$"#$,!!!
!"#$

$"#$,!!!
!"#$

$"#$,!!!

$"#$,!!!
!"#$

!
!

!"#$

=0
$840,000x
x ! + 256miles

$480,000
mile

$840,000x ( x ! + 256)miles
=
$480,000
mile
!

7
4

= ! + 256

49 !
= ! + 256
16
49 ! = 16 ! +4096
49 ! 16 ! = 4096
33 ! = 4096
=

!"#$
!!

=11.141

Minimum Cost
We will be able to reach the minimum cost value when x=11.141
Cost=

Cost=

$"#$,!!!
!"#$

x ! + 256

$"#$,!!!

!"#$

!"#$

!!

!
!

$"#,!"#,!!!
!"#$
!
!

+ 256

$"#$,!!!
!"#$

$"#,!"#,!!!
!"#$

$"#$,!!!
!"#$

!"#$
!!

Cost = $26,389,560,52 this is the Minimum cost of the Pipeline project at the
angle .
=

16

= tan!!

!
!"

34.85

BLM Ground

8 mile

BLM Ground
16 miles

Private Ground

40 miles - BLM Ground

32-X

d) Include a sketch of the cost function for this pipeline for configurations
involving crossing some private ground in a straight line that intersects the
BLM ground to the south and then running east to the refinery.

Reflection

I enjoyed every bit of this class, Math1210 Calculus I. I learned a

new ways to solve problems that involves maximum and minimum
costs, velocity, acceleration and drag by using a new tool that calls
derivatives!
I also enjoyed learning about the limits, being an engineer student;
I learned how important it is to know how to calculates the limits of the
things through this class.
This class was an adventure; I am looking forward to the next
class, Calculus II to expand my knowledge by learning new tools in
Calculus!