Pipeline Solution

Caryn Melonas
November 13th, 2016
Dear Mr. CEO,
The following report outlines the financial options in regards to
the drilling for a natural gas well near Vernal, Utah. Several options are
researched and documented below. The First scenario includes two
options that are entirely on BLM ground. The Second Scenario is
running the pipeline the shortest distance to the refinery. The Third
scenario is finding the optimal cost scenario; which includes going
through private and BLM ground and minimizing the cost.
Overview of the land:

Pipeline drilling costs:

-

The cost for running the pipeline across BLM ground is $300,000
per mile.
The cost for running the pipeline across Private ground is an
additional $200,000 per mile; which amounts to $500,000 per
mile.
Cost to drill through the mountain will cost $500,000.
There is a required one-time impact study cost of $100,000.
The impact study will take an additional 3 months; which will add
50,000 a month for 3 months. This will cost 150,000.

Running the Pipeline Strictly through BLM ground

Scenario A1: Running the pipeline through BLM ground

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

Starting from the well and heading East 20 miles through the
mountain and then heading South 5 miles to the refinery.

C(x)= 25($300,000) + $500,000+ $100,000 +$150,000= $15,000,000

Scenario A2: Running the pipeline West of the well and then
South, and then East to the refinery.
-

Starting from the well we would head West 1 mile and then South
5 miles, and then we would head East 21 miles to the refinery.
C(x)= 27 ($300,000)= $8,100,000

Scenario B: Running the pipeline the shortest distance

(straight line from the well to the refinery).
-

Using Pythagorean Theorem we find that the length of the

shortest distance is:
425 = 20.616 miles
C(x)= 20.616($200,000 +$300,000)= $10,308,000

Scenario C: Running the pipeline from the well across the

private ground at an angle intersecting the BLM ground to the
South and then running the pipeline East to the refinery.

First we need to determine the minimum cost function:

1. Using the Pythagorean Theorem we define y: Y= 25+ x 2 ( the

angle; distance will need to go South through Private Ground to
the BLM South.
2. The Distance East on the BLM will be (20-x) (x being the distance
cut off from drilling at an angle.
3. The minimum cost function :
C(x)= $500,000 ( 25+ x 2 )+$300,000(20-x)
4. Next finding the derivative of the minimum cost function and
setting it equal to zero will give us the x-value.
C(x)= $

$ 50, 0 000 x
25+ x2

- $300,000

25+ x2 =$ 30 0 , 000
$ 500,000 x

-multiple both sides by sqrt of 25 +x^22 .5

$ 30 0 ,000 ( 25+ x ) =$ 50 0 ,000 x

.5
$ 50 0 , 000 x
=( 25+ x 2)
$ 30 0 , 000
.5
5x
=( 25+ x 2 )
3

Square both sides

Multiply both sides by 9/ then divide both sides by 16
x 2=14.0625 / x= 3.75miles
5. Now plugging in 3.75 as the value of x gives us y=

25+3.752

Y= 6.25 miles

6. The minimum cost function is as follows:

C(x)= 6.25($500,000)+ $300,000(20-3.75)= 8,000,000
7. The angle to which they need to drill from the well to the BLM
South border is:
- Tan =3.75 /5 = 13 degrees
The graph of the minimum cost function:

In conclusion, scenario C will be the most cost efficient, and most

direct method of drilling and my suggestion is to use scenario C.
Caryn Melonas
The following paragraph is a short reflection of my knowledge
of Calculus and how it applies to the real world and my own
personal interests:

Throughout this semester in Calculus I have identified numerous

uses for Calculus in the real world. These include, but not limited to
finding position, velocity, and acceleration of objects, being able to
optimize the dimensions of varied objects to maximize utility, finding
minimum cost of projects, and being able to identify the rate of blood
flow through damaged and repaired arteries. I can identify well with
math concepts when they are applied to real world applications. In
Physics there is a great deal of need for Calculus concepts.
I have applied my knowledge of position, velocity, and
acceleration to my own personal discipline of exercise and sport
science. I have competed in sports and endurance races most of my
life, and it has been interesting knowing and understanding how to
compute positions in my races where I am accelerating, decelerating,
and stopping. I can also use Calculus to determine my slope of the
secant and tangent during the race at any given point. Although, we
have intelligent watches, that compute all of these statistics, it is
exciting for my to know how to do this myself. A sprinter that runs 100
meters would be a perfect example of position, velocity, and
acceleration. The sprinter accelerates at a steady rate at the start of
the race and continues to change position, and has a deceleration
before the finish line. The sprinter has an average velocity for the
distance, but at any given point during the 100 meters it could vary
greatly.
I have also played basketball at the college level and coached
for many years. I can determine the maximum height of a free throw
in basketball by starting with the position equation that accounts for
height of the player, velocity of the ball, force of gravity, and distance
to the hoop. When I take the derivative and set the derivative equal to
zero and solve for the unknown, I will know the maximum height of the
ball in meters. There is a great deal of study involving optimal angles,
arc, and velocity in basketball.
In conclusion, I have learned a great deal about the connection
of Calculus to the real world in how it is connected to my own personal
interests.