Dear CEO,

You will find attached to this email a summary regarding your oil pipeline drilling
request. Our field engineers have put together a series cases regarding the best case of
time and money.
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A) Determining the cost of running the pipeline strictly on BLM ground with two
different cases:
i) One just running west, and then south and then finally east to the refinery will cost
you: $ 30,720,000.00
ii) One just heading west through the mountain and then south to the refinery will
cost you $ 28,940,000.00
B) Determine the cost of running the pipeline:
i) The shortest distance across the private ground to the refinery will cost you:
$ 30,052,753.62
ii) The cost of running straight across the private ground and then straight to the
refinery will cost you $ 28,800,000.00
C) The best course of action and the most cost effective using the cost function for the
pipeline specific to your configuration involves running from the well across the private
ground at some angle (easy to configure) and then intersecting the southern pathway and
then running east along that pathway right into the refinery.
- Length of pipeline usage on BLM land: 20.859 Miles
- Length of pipe that will be utilized on private land: 19.497 Miles
We have estimated that the total cost would be $ 26,389,560.28
Attached is the work computing these costs, values and estimations. For any other
questions or concerns please don't hesitate to call us.
Thank you have a great day!
- Dane Boswell
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