Professional Documents
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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 15 miles south and finally 32 miles east to the refinery (see figure
below). Cost for materials, labor and fees to run the pipeline across BLM ground is $350,000
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 ($350,000 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 $180,000 and will delay the project by 5 months costing the company another
$75,000 per month.
For any pipeline run across private ground, your company incurs an additional $90,000 per mile
cost for right-of-way fees.
Constants:
Private Land Fee: $90,000.00 + $4350,000.00 (BLM) = $440,000.00 per mile thru private land.
BLM Ground
8 mile
Private Ground
ii) One heading east through the mountain and then south to the refinery.
BLM Ground
8 mile
Private Ground
24 miles east, thru the mountain, and 15 miles south (BLM land)= 39 miles
The cost of tunneling thru the mountain, the environmental impact study and BLM
ground is as follows:
BLM Ground
8 mile
Private Ground
ii) Straight south across the private ground, then straight east to the refinery.
8 mile BLM Ground
Private Ground
BLM Ground
8 mile
S
Private Ground
(x) (32-x)
Using the Pythagorean Identity again I found the distance (s) across the private
land in terms of x.
s = 15 + x
s= 225 + $
I then used this information to formulate the cost function for this equation that is
the optimal distance to cross private land and intersect with BLM land and
continue to the refinery.
At this point in my research I began to use some calculus techniques to find the
minimal cost for this project. That minimal cost was found when I found the
derivative of the cost function and set it equal to zero and proceeded to isolate my
distance (x) and used it to find my optimal distances.
Cost function C = ($440,000.00( 225 + $ )+$350,000.00(24-x))
/
- .
C =($440,000 225 + $ 0 (2)) - $350,000.00
$
/
334,4446 334444
/ = 350,000 = 225 + $ 0
;74444
$$786 0 0
/ $ / $
33 33
= 225 + $ 0 = 225 + $ 0
;7 ;7
BLM Ground
8 mile
= 52.698
Distance= 24.75
19.689 miles 4.311 miles
Using the cost function I was then able to use this information to achieve the optimal minimum
cost for this project.
= $12,412,050.00
I then was able to use this cost function to find the minimal cost, and the optimal
intersection point on BLM land, by use of calculus techniques. The intersection point on BLM
land can be found by finding the derivative of the cost function and setting it equal to zero. The
steps of this process are outlined in my report above and I then found that the optimal
intersection point on BLM land was 19.689 miles. By knowing this intersection point I was able
to find the angle at which the pipeline should start going south-east towards BLM land. I found
that angle to be 52.698. Using all of this information the optimal distance of the pipeline across
private land was found to be 24.75 miles. So the cost of the private land fee times 24.75 miles
and the BLM land fee times 4.311 miles (the remaining distance from the intersection point)
would cost our company $12,412,050.00 and this is the most cost effective option for our
company to build this pipeline.
Reflection:
Many of the things I have learned in Calculus class can have real-world applications,
such as the steps involved in this pipeline project. Some other examples I found to be used
quite often would be in the shipping and canning industry. These companies would want to use
the least amount of material in packaging their products to reduce the cost as much as possible,
in turn making them more money. I was not too excited about calculus before taking this class
and finding that it would apply to my field of study more so that I thought it might have. I am
planning to go into an engineering career mainly in the field of surface and ground water
technology, and many of the techniques I have learned and will continue to learn will be applied
in much of my everyday work as an engineer. One example I have thought about is the amount
of water running through a water treatment facility, and what the optimal rate of flow needs to be
at different times so that families would have the right amount of water pressure, and not too
much or too little. But since the water facility doesnt just serve one family, but entire cities at a
time, more and more calculus techniques need to be applied, and more that I need to learn to
facilitate these types of problems in everyday life.