Eric Lindstrom

Dear Mr. CEO,

I have read your information concerning building a pipeline from your natural gas wells in
Vernal, Utah to the refinery in the cheapest way possible. Here are the financial results of the methods
the company has asked about:
1. A. Running pipeline strictly on BLM ground going west (5 miles), south (15 miles), and east (45
miles) to the refinery.

- 65 miles x $500,000 per mile = $32,500,000

B. Running pipeline strictly on BLM ground going east through the mountain (40 miles) and then
south (15 miles) to the refinery (and assuming all estimated expenses are accurate).

- $3,000,000 (drilling mtn.) + $420,000 (impact study) + $120,000 x 6 months (upkeep during
study) + 55 miles x $500,000 per mile = $31,640,000

2. A. Running pipeline shortest distance across private ground (sqt(15^2 + 40^2) = about 42.72
miles).

- 42.72 miles x $850,000 per mile = $36,312,015.92

B. Running pipeline straight across the private ground south (15 miles) then straight to the
refinery (40 miles).

- (15 miles x $850,000 per mile) + (40 miles x $500,000 per mile) = $32,750,000

Looking at this information, it would seem the cheapest route is to drill through the mountain, but I also
determined a cost function equation dealing with putting the pipeline through some private land and
some BLM land. The function is as follows:
C(x) = $850,000(sqt(225+x^2)) + $500,000(40-x)
This graph looks something like this:


Finding the minimum of this graph should tell us what value of x in the cost function will give
us the cheapest pipeline. Doing so we first find the derivative of the cost function:
C(x) = 850,000(2x)(1/2)((sqt(225+x^2)^-1) + 500,000(-1))
C(x) = (850,000x/sqt(225 + x^2)) 500000
Then solving for x when we put the derivative equal to 0 will give us the minimum:
(850,000x/sqt(225 + x^2)) 500000 = 0
(850,000x/sqt(225 + x^2)) = 500000
850,000x/500000 = sqt(225 + x^2)
17x/10 = 225 + x^2
225 = 189x^2/100
22500/189 = x^2
x = 150/sqt(189) = about 10.91 miles
Plugging this value back into the cost function, we can see what the cost would be:
C(10.91) = $850,000(sqt(225+10.91^2)) + $500,000(40-10.91) = $30,310,795.31
Now we see that this is cheaper than all of the suggested methods so far. What this means is
that we ought to drill 53.97 south from east (90 - tan^-1(10.91 miles/15 miles) for 18.55
miles (sqt(15^2 + 10.91^2) and then east to the refinery (21.45 miles). This picture
represents what it will look like:

So, Mr. CEO, this is the cheapest route to put the pipeline and the way I recommend.
Feel free to email me any further questions.
Sincerely,
Eric Lindstrom



Reflection

This pipeline project was a very interesting and useful application of what weve learned
in this calculus class. Weve learned thus far all about derivatives and their applications in the
sciences and engineering. We learned how to find rate of changes and velocity using a
derivative, and acceleration using a second derivative. In problems like this pipeline project,
weve learned how to find a cost function and use its derivative to find the cheapest, or most
efficient way of doing something.
I would certainly argue that calculus is constantly applied often in the world. I am
currently working towards an electrical engineering degree and Im not too far, but Ive already
seen how much we deal with creating functions when measuring electricity in my engineering
classes. Everything Ive learned from math and especially calculus concerning understanding
and manipulating sine graphs is directly involved with the work we do in electrical engineering.
This project has been a strong example to me of how applicable and essential calculus
can be.