Vernal Pipeline Project

In this proposal I will outline five potential solutions to drilling paths of the natural gas pipelines near Vernal, Utah. Included in the solutions will be costs that are accrued along with mapping of the potential lines themselves. The end result is to minimize the cost to lay the pipeline.

Solution 1:

4 mile BLM Ground 12 miles

BLM Ground

Private Ground

36 miles - BLM Ground

In this solution we will run the pipeline 4 miles west, 12 miles south, and 36 miles east to the refinery. Because the land is owned by BLM therefore costs will be $500,000 per mile, which includes materials, labor, and additional fees. We assess the cost with this function: C(x) = $500,000x The total miles that need to be drilled would be 52 miles therefore this option would cost a total of: C(52) = $500,000(52) C(52) = $26 million

Solution 2:

4 mile BLM Ground 12 miles

BLM Ground

Private Ground

36 miles - BLM Ground

In this solution we will run the pipeline 32 miles east and 12 miles south to the refinery. This ground is also owned by BLM however there will be additional costs for drilling through the mountain. The costs will include a one-time fee of $2 million, a mandatory environmental impact study of $320,000, which also delays the project by 4 months costing $120,000 per month, in addition to the $500,000 per mile. We assess the cost with this function: C(x) = $2,000,000 + $320,000 + ($120,000(4)) + $500,000x C(x) = $28,000,000 + $500,000x C(44) = $28,000,000 + $500,000(44) C(44) = $24.8 million

Solution 3:

4 mile BLM Ground 12 miles

BLM Ground

Private Ground

36 miles - BLM Ground

In this solution we will run the pipeline directly from the well to the refinery. This ground is private land therefore we found the shortest possible distance. The cost will include the $500,000 per mile in addition to $350,000 for right of way fees. In order to assess the cost of this solution we must find the shortest distance using the Pythagorean Theorem:

c= c = 34.18

This will be the shortest distance covered and we can plug this into out cost function as follows: C(x) = $500,000x + $350,000x C(x) = $850,000x C(34.18) = $850,000(34.18) C(x) = $29,053,000

Solution 4:

4 mile BLM Ground 12 miles

BLM Ground

Private Ground

36 miles - BLM Ground

In this solution we will run the pipeline directly south 12 miles, which is across private ground. Then 32 miles east across BLM ground to the refinery. The cost will include $500,000 per mile as outlined in the previous solutions in addition to the $350,000 for right of way fees.

We assess the cost with this function: C(x,y) = ($500,000x + $350,000x )+ $500,000y C(x,y) = $850,000x + $500,000y Because there are two different charges for miles we need to separate the costs. C(x,y) = $850,000(12) + $500,000(32) C(x,y) = $26.2 million

Solution 5: (Minimize Cost)

4 mile BLM Ground 12 miles

Y
34.18 miles

BLM Ground

Private Ground

32 -x

36 miles - BLM Ground

In this solution we can use calculus to minimize the cost. We can build a right triangle and get Y by using Pythagorean Theorem.

Now that we have our Y value we can use this to minimize our cost. In solution 4 we built an equation that outlined the cost for going across private ground and BLM ground. Now we can use a similar equation. C(x) = $850,000( ) + $500,000(32 x)

To get critical values we must take the derivative of the function:

( )

( (

) ( ) (

) )

+ $500,000(-1)

( )

Then we set this equal to 0 and we get: $500,000 = ( $500,000 ( ( ( ) = ) ) ( ) = )

Now we can get a value for Y by plugging x into:

The value for our miles can now be used to find the minimized cost by plugging it back into our original function: C(x) = $850,000( C(x) = $850,000( C(x) = $24,248,636.28 ) + $500,000(32 x) ) + $500,000(32 8.73)

Reflection
Calculus gives us powerful tools to find build structures, solve financial interests, replicate speeds, data modeling, and much more. In everyday life Biologists, Electrical Engineers, Architects, and Credit Card companies use it. Since money is a universal necessity I now have the ability to use Calculus for financial success. An example would be how credit card companies use calculus by determining the minimum payments and analyzing changing interest rates.