Salt Lake CC, Math 1210

Pipeline Project
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 16 miles south
and finally 40 miles east to the refinery (see figure below). Cost for materials, labor and fees to run the
pipeline across BLM ground is $490,000 per mile.
Cost of drilling through the existing mountain would be a one-time cost of $5,000,000 on top of the
normal costs ($490,000 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
$700,000 and will delay the project by 6 months costing the company another $100,000 per month.
For any pipeline run across private ground, your company incurs an additional $350,000 per mile cost for
right-of-way fees.
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.

Since the first scenario is a perimeter around the private ground and only runs through the BLM
ground, it is very easy to compute. Therefore, we must add up the total miles of the pipe and times
it by $490,000.
8 Mi+16 Mi+40 Mi = 64($490,000)
Grand Total: $31,360,000
ii)

One heading east through the mountain and then south to the refinery.

The second scenario is also a perimeter through BLM ground only but it has a few additional costs
such as boring through a mountain, studying the environmental impact of that, and the time cost of
the delay. The mountain will be a flat $5,000,000. The environmental study will be $700,000.
Finally, the time cost is $100,000 per month. Since the environmental study will delay the project
for months, there will be an estimated $600,000 in delayed time cost.
32($490,000) + 16($490,000) + $5,000,000 + $700,000 =
$29,220,000, then add the time delay cost of $600,000
Grand Total: $29,820,000
b) Determine the cost of running the pipeline:
i)
The shortest distance across the private ground to the refinery.

For the third scenario, we wished to find the shortest way across the private ground. This made us
have to draw a diagonal line straight across the private ground to the refinery. In order to find the
cost, we had to find the length of the line and therefore had to create a triangle and use the
pythagorean theorem. After we found the length of the aforesaid pipe, we simply had to multiply
that by the cost per mile through the private ground.

Mi = Mi or about 35.8 Mi

Cost to run through the private ground: ($490,000 + $350,000)/ Mi = $840,000

($840,000) =
Cost of Pipe:
Grand Total: $30,052,754
ii)
refinery.

Straight south across the private ground, then straight east to the

For the fourth scenario, we could go straight south across the private ground and then straight east
across BLM ground. There would be 16 miles of private ground to cover plus 32 miles of BLM
ground.

16(840,000) + 32(490,000) = $29,120,000

Grand Total: $29,120,000
c) Determine the cost function for the pipeline for the configuration involving running
from the well across the private ground at some angle and intersecting the BLM ground to
the south and then running east to the refinery. Use this function to find the optimal way to
run the pipeline to minimize cost. Determine the length of pipe that runs across private land
and how far from the refinery it starts running on BLM land. Determine the angle at which
your optimal path leaves the well. 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.
C(x) = 840( + 490(32-x)
C(x) =

C(x) =
840 x

(840

x 2

=(

840 x
-490

840 x

- 490

= 490
490

705,600 x 2=240,100(256+ x 2)
705,600 x 2=61,465,600+ 240,100 x 2
465,500 x 2=61,465,600

61,465,600
465,500

x 2=
x=

or

x=11.49095754

Hypotenuse of Optimization Triangle = Miles

Distance from Refinery to Optimization Triangle =
(32 - 11.49095754) = 20.50904246 Miles
C(11.49095754) = $26,596,000

Angle of Pipeline:

Cos

1 6 2+19.6982258 1211.4909575 42
=
2(16)(19.69822581)

Cos

=0.81222098 3o
1

=Co s (0.812220983 )
=35.6865014 3o

90-

=54.31349857 0o

= 0.812220983

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

Write up a report of your finding to submit to your companys CEO. This report should include all steps
for any math used to make determinations asked for above as well as statements as to the costs to be
incurred by each scenario. Include any appropriate figures to make each scenario clear. Label the
scenarios as they are labeled above.
Expectations:
All of the mathematical steps will be shown and will be correct
All equations and formulas will be created using an equation editor
Use exact values, rounding costs to the nearest dollar only after the final calculation
Each pipeline scenario will be clearly labeled on a computer generated diagram
showing the path that is being considered
Any variables you use will be clearly defined and shown in your diagrams
The cost function graph will be accurately generated using mathematical software

 A word-processed explanatory narrative with correct spelling and grammar will

allow the reader to follow your process
Your report should be an exposition of your finest work and presentation.

Also, in your report, include a reflection of the things you have learned in your calculus class and how
they may apply to the real world. Can you make the argument that calculus is a useful tool? What kinds
of things have you learned that can be useful in your areas of interest? Please be specific and give some
examples to back up your statements. Your reflection needs to be typed-not handwritten and included
with the report.
Math 1210 is a Quantitative Studies General Education course. Scan or save a copy of your finished
report to upload to your SLCC ePortfolio so that it can be found under this category. You will NOT
receive a grade for the assignment if it is not uploaded to your e-Portfolio. Instructions for the e-Portfolio
are posted on the Canvas site for this course.

Letter to CEO
Dear CEO,
As you can see above, we have many different options for the refinery pipeline. We could go just
on BLM land, through a mountain shortcut, through private land, or a combination of both. Through my
field research, I found that the most cost-efficient way was to have a combination of both. I found the
optimal distances through private and BLM land in order to keep cost at a minimal. The final numbers
o
ended up being about 19.7 miles of pipe going down towards the refinery at a direction angle of 54.3

and into BLM land where we will build the cheaper 20.5 mile pipe to the refinery. The total for this
would come to $26,596,000.
Sincerely,
Noah Kelsch

Reflection
Calculus has been one math class where I know an area that most everything can apply to in the real
world such as the derivative. Derivatives help us with everything from finding the velocity and
acceleration of a function to figure out how fast an object or person is moving at a moment in time and
how long they were moving and when they changed speeds etc. Another useful tool to me in Calculus has
been the story problems. Before this year I hadnt bothered much with story problems but in this class we

are receiving more real-life situations. Calculus is a very useful tool for many engineering and science
applications because not only does it teach one advanced math, but it also teaches good problem solving
skills and really makes you think outside the box. Since I am going into engineering, Calculus will be an
essential and everyday tool for me to find speed, velocity, acceleration, position, and optimization
measurements.