Justin Hatfield MATH 1210 Pipeline Project The following report lists the options and their related costs for the Vernal, Utah pipeline, Option A: Uti The int option utilizing only BLM land will be to lay a total of 64 miles of pipe from the drill to the refinery as follows: 8 miles west from the drill, then 16 miles south, and finally 40 miles east to the refinery. The cost of laying pipe is $480,000 per mile. So the total cost of this option is $30,720,000 ($480,000 per mile for 64 miles). be ‘second option utilizing only BLM land will be to go through the mountain east of the drill. This option lays pipe for a total of 48 miles (32 miles east of the drill and then 16 miles south to the refinery) at a cost of $480,000 per mile for a cost of $23,040,000. However the additional costs of going through mountain of $5,900,000 including: $4,500,000 for drilling through the mountain, $600,000 for an impact ing Only BLM Land Total cost = + 64 = $20,720,000 0miee- BM Grosna Pirate oun ‘Dron BUM Ground study, and $800,000 for 8 months of delay. Therefore the total cost for this option is $23,040,000 laying pipe plus the additional $5,900,000 totaling $28,940,000. Option B: Running Pipe through Private Ground Option B1: Cost $30,052,753.92 ‘Foutilze the private ground, an additional $360,000 per mi of-way cost is added to the original $480,000 per mile of pipeline cost for a total of $840,000 per mile for using the private ground. The distance through the private ground directly from the drill to the refinery is approximately 35.777 miles (32+ 16 = /T280 ~ 35.777). So the cost is $30,052,753.92 ($840,000 per mile for 35.777 miles). 1 Option B2: Cost $28,800,000 fone pipeline the fewest miles across the private ground, we would lay 16 miles of pipe straight south from the drill across the private ground for a cost of $13,440,000 (16 miles at a cost of $840,000 per mile). Then we would run 32 miles of pipe straight east on BLM ground to the refinery for a cost of $15,360,000 (32 miles at the BLM pipe cost of $480,000). This option is then a total cost of $28,800,000 ($13,440,000 plus $15,360,000), Total Cost = $840,000 * 35.777 = $30,052,753,.92 Toeeecsinatanstseenans serene 3h “20 mins- ALM oun ($840,000 * 16) + ($480,000 * 32) = $28,800,000 Sderiles “Dmiee BLM Couns a g & a_Aatvest Cost Option ytifzing Both Private and SLY. Sround, Palais 1e ee ane southeast from the drill equals a total pr $10,012,334.40). Detailed Calculations C(x) = 840,000,768 + ¥? + 480,000(32 ~ x) (a) = 840,000(256 + x2)'/? + (15,360,000 ~ 40,0002) 61 = (2x)840,000(5) (256 + 4)# — 480,000 840,000" sex xP cw) 480,000 840,000% — 480,000, G@ie+ ey 840,000 £00000 Gee xy 810000" a564 9} (2564 x2)2 (286+ x4)3480,000 (640,000/18 +27)? 230,400,000(256 + 2 05,600,000x2 705,600,000x '58,982,400,000 + 230,400,000x* = 705,600,002" 58,982,400,000 = 475,200,000 124212125 = x? 11,14097 =x (1G + 1114097? ~ VIBUTTZIIS ~ 19.496697 — wand = 6963106258 ran™¥(. 696310625) y= 90 across the ata cost of $840,000 per mile ate land cost of $16,377,225.48. Then the pipeline will go au east on Bu ud for 2083803 laa conf $480,000 per mile for a total BLM cost of $10,012,334.40. Therefore, the total cost for this option is $26,389,559.88 ($16,377,225.48 plus Purim soil - BM Grune yn 55" |e 221 0m04 eum rund ome BLM Ground O= H4.85° 0 = 34.8499"