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 17 miles
directly west and then 42 miles south and finally 97 miles east to the refinery (see figure
above). Cost for materials, labor and fees to run the pipeline across BLM ground is
$98,750 per mile.

Cost of drilling through the existing mountain would be a one-time cost of

$2,364,000 on top of the normal costs ($98,750 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 $78,000 and will delay the project by 3
months costing the company another $1,200 per month.

For any pipeline run across private ground, your company incurs an additional
$24,300 per mile cost for right-of-way fees in addition to the normal costs ($98,750 per
mile) of the pipeline itself.

Your company has asked you to do the following

1. Determine the cost of running the pipeline strictly on BLM ground with two
different cases.

Variables

BLM Ground - $98,750/mi

West – 17 miles

South – 42 miles

East – 97 miles

Case A - One running west, south and then east to the refinery
 Cost

Calculations:

𝐶 = (𝑤𝑒𝑠𝑡 × 𝐵𝐿𝑀) + (𝑠𝑜𝑢𝑡ℎ × 𝐵𝐿𝑀) + (𝑒𝑎𝑠𝑡 × 𝐵𝐿𝑀)

𝐶 = (17 × 98,750) + (42 × 98,750) + (97 × 98,750)

𝐶 = 15,405,000

The cost to cover 99 miles going west, south, and then east is $9,776,250

Case B One heading east through the mountain and then south to the refinery

Variables

Mountain Cost – $2,364,00

 Study - $78,000

3 Months – 3,600

Cost

Calculations:

𝐶 = 𝑀𝑜𝑢𝑛𝑡𝑎𝑖𝑛 + 𝑆𝑡𝑢𝑑𝑦 + (𝑒𝑎𝑠𝑡 × 𝐵𝐿𝑀) + (𝑠𝑜𝑢𝑡ℎ × 𝐵𝐿𝑀)

𝐶 = 2,364,00 + 78,000 + 3,600 + (80 × 98,750) + (42 × 98,750)

𝐶 = 14,493,100

The cost of going the shorter rout through the mountain is $14, 493,100 which is

cheaper than case A.

2. Determine the cost of running the pipeline

Case C The shortest distance across the private ground to the refinery.

Private Ground - $24,300

Let a = 42 and b = 80

Cost

Calculations:

𝑎B + 𝑏B = 𝑐 B
 𝑐 B = 42B + 80B → 𝑐 B = 1,764 + 6,400 → 𝑐 B = √8164 = 90.35

𝐶 = (𝑃𝑟𝑖𝑣𝑎𝑡𝑒 + 𝐵𝐿𝑀 ) × 𝐷𝑖𝑠𝑡𝑎𝑛𝑐𝑒

𝐶 = (24,300 + 98,750) × 90.35

𝐶 = 11,118,165.03

Case D Straight south across the private ground, then straight east to the refinery

Cost

Calculations:

𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑚𝑖𝑙𝑒: 𝑃𝑟𝑖𝑣𝑎𝑡𝑒 + 𝐵𝐿𝑀 = 123,050

𝐶 = (𝑠𝑜𝑢𝑡ℎ × 123,050) + (𝑒𝑎𝑠𝑡 × 123,050)

𝐶 = (42 × 123,050) + (80 × 123,050)

𝐶 = 13,068,100

3. 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. After finding the optimal pipe configuration, determine the angle at
which your optimal path leaves the well. Clearly show all work including drawing
the pipeline configuration. Make it very clear how you use your knowledge of
calculus to determine the optimal placement of the pipeline.

Cost

Calculations:
UVV Z
(1) tan(𝜃) = WXY
→ [B

(2) 𝑦 B = 𝑥 B + 42B → 𝑦 = √𝑥 B = 1764

Finding the Cost Function

𝐶(𝑥) = 98,750𝑥 + 123,050𝑦

𝐶(𝑥) = 98,750(80 − 𝑥) + 123,050 ^_𝑥 B + 1764`

𝐶(𝑥) = 7,900,000 − 98,750𝑥 + 123,050 ^_𝑥 B + 1764`

Derivative of Cost

123,050𝑥
𝐶 a (𝑥) = −98,750 + b
(𝑥 B + 1764)B
b
𝐶 a (𝑥) = −98,750(𝑥 B + 1764)B + 123,050𝑥
 Find Minimum Value

b
−98,750(𝑥 B + 1764)B + 123,050𝑥 = 0

b
123,050𝑥 = 98,750(𝑥 B + 1764)B
b
1.246𝑥 = (𝑥 B + 1764)B

1.5527𝑥 B = (𝑥 B + 1764)

𝑥 = 56.49

Find Angle

cd.[e
(1)tan 𝜃 = [B

cd.[e
𝜃 = tanfb [B
≈34.8499

(2) 𝑦 = _56.49B + 1764 ≈ 70.3926

𝑑 = 80 − 56.49 ≈ 23.51

Find Minimum Cost

𝐶 = 123,050(70.3920) + 98,750(23.51)

𝐶 = 10,983,348.10

4. Graph
 Reflection

Calculus is a very important tool to know because it can be used in real life

scenarios just like this one. Calculus is all math like algebra and trigonometry combined

into one which makes it very useful in science and physics all the time. Without calculus

it would be very hard to solve the things that happen every day to us. We might not see

it and think about, but calculus is happening all around us al the time. I am going into

architecture and it is very important to know calculus because you need to know how to

keep the building stable at what angle would you put the roof, so it doesn’t collapse on

the people. Calculus can be used as well as guiding people of the building a faster way in

case of a fire because it is important to get out of a burning building as fast and as safe

as possible. Architecture really revolves around physics as well and it would be very hard

to understand physics without calculus. Calculus is a very helpful tool in a everyday life

of an architect.