Amber Bell

Math 1210
Calculus
Pipeline Project


Pipeline Project
Amber Bell
Math 1210
Calculus



http://amberbell41.weebly.com


Amber Bell
Math 1210
Calculus
Pipeline Project

Amber C. Bell
708 North 350 West
Tooele, Utah 84074
April 27, 2014


Ronald W. Jibson
Questar Corporation, CEO
P.O. Box 45360
Salt Lake City, Utah 84145


Dear Mr. Jibson,

I have recently completed my research of the Pipeline Project and would like to inform
you of my findings, as well as discuss the most cost effective scenario. By researching
four different options, I have found the optimal place to run the pipeline. This will
minimize cost and save our company the most amount of money possible. While a direct
route to the refinery would be preferable, there is a large parcel of private land directly in
our path, and right-of-way costs for building pipeline directly through it are prohibitive.
After analyzing several different pipeline scenarios, it has become clear that a route built
largely on land owned by the Bureau of Land Management (BLM) and a short stretch of
private ground will yield the most cost-effective solution.

Scenario A1: Western Route

This option requires us to build pipeline around private property, on BLM land, by going
west for four miles, then south for twelve miles, then east for thiry-six miles to the
refinery. This route is fifty-two miles and no additional costs are incurred other than the
costs for the construction of the pipeline itself. It can be represented with the following
cost function:
C(x) = 500,000x

in which x represents the distance in miles that the pipeline will run to reach the refinery
(fifty-two miles) and C(x) represents the total cost of the project in dollars. The
itemization of this function is as follows:

Pipeline Construction Cost ($500,000/mi): $26,000,000
Total Cost: $26,000,000
Scenario A2: Mountain Route

This option requires us to drill through the mountain to the east of the well, which will
also require additional costs in order to drill and lay the pipeline, as well as an
environmental impact study ordered by the BLM. On top of that cost, we have to add
$120,000 per month for the delay from the study, which will last four months. The
pipeline would run thirty-two miles east through the mountain, then twelve miles south to
the refinery for a total of forty-four miles. The cost of the scenario can be represented by
the cost function:

Amber Bell
Math 1210
Calculus
Pipeline Project

C(x) = 500,000x + 2,000,000 + 320,000 + 4(120,000)

in which x represents the distance in miles that the pipeline will run to reach the refinery
(forty-four miles) and C(x) represents the total cost of the project in dollars. The
itemization of this function is as follows:

Pipeline Construction Cost ($500,000/mi): $22,000,000
Cost of Drilling Through the Mountain: $2,000,000
Environmental Impact Study: $320,000 + $480,000 for four month delay
Total Cost: $24,800,000


Scenario B1: Private Ground Route

This option requires us to build the pipeline across private property, the shortest route
from the location of the well to the refinery. That being said, there is an additional
$350,000 per mile cost for right-of-way fees added onto the initial $500,000 per mile cost.
The total cost can be calculated by the following cost function:

C(x) = 850,000x

in which x represents the distance in miles that the pipeline will run to reach the refinery
(approximately 34.176 miles) and C(x) represents the total cost of the project in dollars.
The itemization of this function is as follows:

Pipeline Construction Cost ($500,000/mi): $17,088,000
Right-of-Way Fees ($350,000/mi): $11,961,600
Total Cost: $29,049,600

32 mi

z = shortest distance from well refinery

z
2
= (32
2
+ 12
2
) z = (32
2
+ 12
2
) 34.176 mi.
z = 34.176 mi
12 mi





Unfortunately, the excessive right-of-way fees increase the cost of this scenario well above the
first two cases.
Amber Bell
Math 1210
Calculus
Pipeline Project

Scenario B2: Combination of Western Route and Private Ground Route

This option would minimize the total length of the pipeline by intersecting private ground at an
angle of 53.96. The number of miles of pipeline conserved by reducing the distance actually
minimizes the whole cost of this scenario, even when we include the right-of-way fees.



4 mi 32 mi BLM Ground



12 mi

BLM Ground


36 mi
X


The diagram above marks the path of the pipeline (marked with the red dotted line) for this
type of scenario. The path of the pipeline will run a bit southeast until it reaches the BLM
land, then it will continue east to the refinery. The cost of manufacturing the pipeline under
these circumstances can be represented by the following cost function:

C(x) = 500,000(32-x) + 850,000y

in which y represents the distance in miles over which the pipeline runs on private ground
($850,000/mi) to reach BLM land ($500,000/mi), and (32-x) represents the distance in
miles that the pipeline will travel east from that point to the refinery, note that x and y have
been marked on the above diagram. By using the Pythagorean Theorem, we can find y in
terms of x for a simpler equation:

y = (144 + x
2
) or y = (144 + x
2
)
1/2


By rewriting C(x), we have

C(x) = 500,000(32-x) + 850,000(144 + x
2
)
1/2




=
53.96 Private Ground


y
Amber Bell
Math 1210
Calculus
Pipeline Project

This function integrates both the cost of right-of-way fees and regular pipeline costs per
mile. Now, we need to find the minimum cost.

In order to find the path that gives us the minimal cost, we need to minimize the cost
function C(x). To do that, we must find the critical points of the function (by obtaining the
first derivative of C(x)) and locate where they are equal to zero (which is the point at which
the rate of change (in cost) has leveled out). By doing so, we discover that:

C(x) = 850,000x(144 + x
2
)
-1/2
500,000

and C(x) = 0 when 850,000x(144 + x
2
)
-1/2
= 500,000

Solving for x:
x(144x
2
)
-1/2
= 10/17
(17/10)*x = (144 + x
2
)
1/2

(289/100)*x
2
= 144 + x
2

(189/100)*x
2
= 144
x
2
= (14400/189)
x = 8.73 miles

So, C(x) = 0 when x = 8.73 miles, making that a critical point of the cost function.
Automatically we can see that the larger x is, the longer the pipelines path over private
ground though there is an initial decrease in total cost as the total length of the line
decreasesand therefore the more right-of-way fees the project will incur. Thus, the graph
of C(x) has a minimum at x = 8.73 miles, making it the optimal length for x in this
scenario.

By using this value for x, we can determine that the distance the pipeline will travel over
BLM land (32-x) after it crosses private land will be 23.37 miles.

Since we know y in terms of x, we can now use it to determine the distance y that the
pipeline must travel over private land:

y = (144 + 8.73
2
)
1/2
y = 14.84 miles

As a result, we find that for the least costly route, the pipeline will need to travel over
private land for 14.84 miles to reach BLM land. Then it will need to travel due east for
23.27 miles to the refinery. The total pipeline length is 38.11 miles. If we plug those values
into the cost function, we are given a breakdown of the cost as follows:

Pipeline Construction ($500,000/mi) * (38.11 mi): $19,055,555
Right-of-Way Fees ($350,000/mi) * (14.84 mi): $5,194,000
Total Cost: $24,249,000

As you can see, this is the most cost effective scenario. It beats out Scenarios A1 and A2 by
$1,751,000 and $551,000 respectively. Scenario B1 is much more costly, with a difference
of a whopping $4,800,600.

Amber Bell
Math 1210
Calculus
Pipeline Project

Furthermore, by graphing the cost function C(x) for Scenario B2, we can see the exact
point at which the costs will be minimized. It becomes apparent that our first assumption
was correct. The costs decreased for values approaching 8.73 as we saved money by
shortening the pipeline, but began increasing again for values larger than that number as we
begin to wipe out those gains with the higher right-of-way fees.











In conclusion, we found that the optimal cost is in Scenario B2 for a total of $24,249,000
and that combining routes saved quite a bit of money in the end. By going through the
mountain or all the way around private property, we would incur much higher costs that
ultimately arent worth it. Blasting through the mountain also causes environmental issues
and delays our project for several months, which in return causes more fees. Simply put,
while you are presented with these facts, I suggest using the plan from Scenario B2; its
much more cost effective than the others. Thank you for your time.

Sincerely,




Amber Bell



x-values
(miles)
y
-
v
a
l
u
e
s

(
d
o
l
l
a
r
s
)


Cost of Western Route/Private Ground
Amber Bell
Math 1210
Calculus
Pipeline Project

Reflection

In Calculus, I have learned how to use optimization as seen in this project, but Ive also
learned how to find the derivatives and how to solve problems the same way a calculator
does. I was shown a few different ways that calculus is applied in everyday life, and
realized that we may be using calculus without actually knowing it. I see how calculus can
be useful in areas such as engineering and physics, but I havent dealt with much calculus
in the pharmacy field, yet. Im sure its coming though. Calculus is used a lot in
pharmaceutical research, and is very important in finding the half-life of medications as
well as using it in pharmacokinetics. Calculus is also a subject on the PCAT, so I will run
into it sooner than later, anyways. Besides real life events, Calculus proves that there are
more ways than one would think to solve problems, mathematical or not. It shows balance.