Gas Pipeline Solutions

a) Determine the cost of running the pipeline strictly on BLM ground with two different scenarios:
1. Heading east through the mountain and then south to the refinery
Drilling through the mountain costs $500,000 plus the cost for the study which is $100,000.
After this for each month of delay it is $50,000 per month and due to the study that will be 3
months. The BLM land costs $300000 per mile, which will be 20 miles east and 5 miles south.
Making it 25 miles in total.
y = 300,000(25) + 500,000 + 100,000 + 50,000(3)
y = 7,500,000 + 600,000 + 150,000
y = 8,250,000
This path would cost $8,250,000.

2. Running west, south and then east to the refinery.

The BLM land costs $300,000 per mile, which runs 1 mile west, 5 miles south, and 21 miles
east. Which equal 27 miles in total.
y = 300,000(27)
y = 8,100,000
This path would cost $8,100,000.

b) Determine the cost of running the pipeline the shortest distance (straight line joining well to
refinery across the private ground).
The pipeline will need to travel diagonally to the refinery. 5 miles south, 20 miles east.

2 = 2 + 2
2 = 202 + 52
2 = 400 + 25
Z = 425
The pipeline would be going through about 20.62 miles of private ground. Each mile through
private land cost an additional $200,000 per mile in right-of-use fees.
y = 300,000(425) + 200,000(425)
y = 10,307,764.06
The straight-shot pipeline would cost $10,307,764.06.

c) Determine the cost function for this 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 determine the optimal place to run the pipeline to
minimize cost. Clearly show all work including sketching the placement of the optimal pipeline. Make
it very clear how you use your knowledge of calculus to determine the optimal placement of the
pipeline. Draw a graph of this cost function and label the point of minimum cost.
To optimize the path across the private property we need to express the equation in terms of
x. We already determined the hypotenuse using x only.

2 = 2 + 52
2 = 2 + 25
z = 25 + 2
y = 500,00025 + 2 + 300,000(20-x)
In order to calculate the most efficient path we need to determine the derivative.
= 250,000(25 + 2 )

2 + 300,000(-1)
1

y = 500,000x(25 + 2 )2 300,000
We set it to equal zero to solve for x.
1

500,000(25 + 2 )2 300,000 = 0
1

500,000 (25 + 2 )2 = 300,000

500,000x
1

(25+ 2 )2

= 300,000
1

500,000x = 300,000(25 + 2 )2
5x
3

= (25 + 2 )2

9(25 + 2 ) = 252
225 + 9 2 = 25 2
225 = 16 2
x = 3.75
2 = 3.752 + 252
z = 6.25

y = 500,00025 + 3.752 + 300,000(20-3.75)

y = 500,000(6.25) + 300,000(16.25)
y = 3,125,000 + 4,875,000
y = 8,000,000

The optimized pipeline will cost $8,000,000 and will travel 6.25 miles diagonally across private
land to the southeast, before traveling 16.25 miles east to the refinery (20 x, x being 3.75).

Write up a report of your findings to submit to your companys CEO. This report should include
solutions to parts a-c showing all math steps and clearly labeled. Summarize the costs to be incurred
by each scenario. Include any appropriate figures to make each scenario clear.

The pipeline running east through the mountain and then south to the refinery would cost
$8,250,000. The pipeline running west, south and then east to the refinery would cost
$8,100,000. The pipeline running directly across the private land would cost $$10,307,764.06
million. Running diagonally across the private land on an optimized route will cost
$8,000,000, which is the cheapest route. The pipeline will travel southeast 5 miles and then
16.25 miles east to the refinery.
What kinds of things have you learned that can be useful in your areas of interest?

Having taken calculus, I have learned many things I never would have known otherwise.
Calculus is used every day, even if we may not notice it. We were shown with each module
we completed, how what we had learned was applicable to the real world. We used roller
coasters, transportation systems, rock concerts, and other daily occurrences that, while we
may see, we do not particularly pay attention to the details. And in calculus details are quite
important. Calculus is rather time consuming, and if I do say so myself more than a bit
wonderful. I best liked derivatives, Im not sure why, they were just my favorite.