Eric Sparks

Math 1210
Pipeline Project

Your company has asked you to do the following:

a) Determine the cost of running the pipeline strictly on BLM ground with two different
cases:
i) One running west, south and then east to the refinery.
60 mi. x $500,000.00/mi. = $30,000,000.00$
ii) One heading east through the mountain and then south to the refinery.

$2,000,000.00 (drilling cost) + $320,000.00 (environmental study) + $480,000.00 (4 month delay at
$120,000.00/mo.) + [50mi. x $500,000.00/mi.] = $27,800,000.00
b) Determine the cost of running the pipeline:

i) The shortest distance from well to refinery across the private ground
The shortest distance from the well to the refinery is a straight diagonal line that forms a right triangle
with the North and East border of the private land. The distance of this line can be found by using the
Pathagorean theorem 15^2 + 35^2 = (unknown distance)^2, which approximately equals: 38.079 mi.
Therefore: 38.079mi x [$500,000.00/mi. + $350,000.00/mi (right of way fee)] = $30,250,000.00
ii) The shortest path across the private ground (directly south), then straight to the
refinery (directly east).
Distance South = 15 mi. of Private Land Distance East = 35 mi. of BLM land.
{15 mi. x [$500,000.00/mi. + $350,000.00/mi (right of way fee)]} + [35 mi. x $500,000.00] =
$30,250,000.00

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

[(sqrt(15^2 + x^2)(850,000)] + [(35 x)(500,000)]
C(x) = {[(225 + x^2)^(1/2)](850,000)} + [500,000(35 x)]
C(x) = *(850,000)*(1/2)*(225+x^2)^(-1/2)*(2x)] +[(500,000)*(-1)]
C(x) = *850,000x 500,000(225 + x^2)^(1/2)] / [(225 +x^2)^(1/2)]
By evaluating the numerator equal to zero the critical value of x can be determined.
[850,000x 500,000(225 + x^2)^(1/2)] = 0
850000x = 500,000(225 + x^2)^(1/2)]
85x/50 = (225 + x^2)^(1/2)
(85x/50)^2 = [(225 + x^2)^(1/2)]^2
[(85/50)^2](x^2) (x^2) = 225
(x^2)[(85/50)-1] = 225
(x^2) = 225 / [(85/50)-1]
x = 10.91089451179962
When this value of x is put back into the original cost function C(10.91) = $27,810,795.31



d) Include a sketch of the cost function, C(x), for this pipeline for any configuration
involving crossing some private ground as well as some BLM ground. Make sure to scale your axes
appropriately and to label the minimum point.

The point A is the minimum as it crosses the x-axis.
Reflection:
I believe that calculus is a very useful tool, as illustrated by this example. There are many applications in
life that requires calculus. Whether or not I will use it in the future is unknown. I use algebra almost
daily and knowing how to use functions as an analytical tool is useful. I cannot give any specific details
as to when I will be able to use calculus. My job does not require anything of this nature and as I have
yet to pick a major and a career field, I cannot wildly guess at what I will be doing, or how I will be able
to implement what Ive learned in this class.