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 $480,000 per mile.
Cost of drilling through the existing mountain would be a one-time cost of $4,500,000 on top of the
normal costs ($480,000 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
$600,000 and will delay the project by 8 months costing the company another $100,000 per month.
For any pipeline run across private ground, your company incurs an additional $360,000 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.
(64 miles * $480,000) = $30,720,000
ii)

One heading east through the mountain and then south to the refinery.
(48 miles * $480,000 + $360,000) + 32 miles * ($480,000) = $28,800,000

b) Determine the cost of running the pipeline:

i)
The shortest distance across the private ground to the refinery.
2
2
2
D= 16 +32 =c = 16 5 miles*($480,000+$360,000) = $30,052,753.62
ii)

Straight south across the private ground, then straight east to the refinery.
16 miles *($480,000+ $360,000) + 32 miles* ($480,000) = $ 28,800,000

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.
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.

e)

BLM Ground

8 mile

16 miles

BLM Ground

f)
g)
h)

Private Ground
32-X

40 miles - BLM Ground

The cost function is the amount of money that is needed multiplied by the distance that the pipes will be ran
through the specific terrain all added together:
2

2 1 /2

C(X) = ($840,000 * ( X +16

) + ($480,000 * (32 X))

Finding the derivative of this Cost Function allows us to find any potential minimum values, and
rates of change:
2
2 1 /2
C(X) = (840,000X * ( X +16
) - 480,000

If you set the derivative to zero and solve for X, it gives you the potential minimum value, and
performing a sign analysis on that value ensures that it is indeed the minimum value:
2
2 1 /2
C(X) = (840,000X * ( X +16
) - 480,000 = 0 => X ~ 11.141. Doing the sign analysis

evaluating the derivative at will show you that X = 0 is negative, and X = 12 is positive which

indicates a maximum and a minimum. However, we want the Minimum, we dont need the
Maximum
Now take that Minimum value and plug it into the original equation:
2
2 1/ 2
C (11.141) = $840,000( 11.141 +11.141
+ $480,000(32-11.141) = $26,389,600

So by using these simple calculus steps, we can save approximately $2,000,000

To find the distance that the pipes run through private grounds, you just have to plug that value
into the Pythagorean Theorem:
2
2 1/ 2
D= ( (11.141) +16
~19.497 miles

We then plug 11.141 into X to find the distance along the BLM ground:
D= (32-11.141) = 20.859 miles
To find the Angle at which we stray from the well towards the refinery, we use some basic
trigonometric analysis by up the appropriate triangle. We can see that the angle we need is:
= arctan(X/16) = arctan (11.141/16) ~ 34.85
The graph of the original cost function is used to solidify the information that we found using
calculus methods:

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 cent 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 hand written 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 e-Portfolio 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.

Message to the CEO:

Mr. Bond,

As requested, I have analyzed the Vernal project and have identified a potential savings of
approximately $2,000,000. To get this, you have to run 19 miles of piping through Private Ground and
roughly 21 miles across BLM ground. Using the function Total cost * distance through Private Ground +
2

2 1 /2

Cost * distance on BLM ground: (C(X)= $840,000( X +16

+ $480,000(32-X)); I was able to

determine the most cost efficient way of transporting our Natural Gas resources to our refinery. Using the
fundamental derivative applications by deriving the original cost function and determining the distance
2

2 1 /2

needed for each area: C(X)= 840,000X ( X +16

-480,000=0 => X~11.141 I was able to calculate

the maximum distance needed that would allow us to minimize the overall cost for the project. I also
calculated the angle that would best aid our progression in routing the pipelines to the well using the
Right-Angle Trigonometry: arc tan (11.141/16) ~ 34.85.
I really appreciate the opportunity that I had to work on this project, and I hope there will be many
more in the future.