Madison Morgan

Math 1210 Pipeline Project

Fall 2016
Dear CEO, the pages below outline the steps taken to find the most cost efficient method for
installing a pipeline from the gas wells in Vernal to the refinery. Four different scenarios are
analyzed, and then the resultant cost function is used to find the best option for the pipeline
route.
Expenses as listed in the outline:
Cost of drilling through the existing mountain would be a one-time cost of $4,300,000 on top of
the normal costs ($300,000 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 $150,000 and will delay the project by 5 months costing the company another
$75,000 per month.
For any pipeline run across private ground, your company incurs an additional $90,000 per
miles cost for right-of-way fees.
Projected Path Costs:

1. Route Costs Through BLM Ground

a) To find the cost of pipeline on BLM ground, the pipe cost per mile (300,000 per mile) is
multiplied by the pipe length (in miles). The formula for calculating the price of the
pipeline on BLM ground is shown below. (D represents pipeline length in miles).

Cost of Running Pipeline West, South, and Then East to the Refinery:
a) The total number of miles of pipeline is equal to
all the distances given added together. As shown in the
diagram to the left, each distance is 15 miles, 8 miles,

and 32 miles. So distance equals 15+8+32 which is 5

5 miles.
To find out how much this option costs, we plug 55 into the cost equation below that was
derived in step a.
= $16,500,000
The miles in this equation cancel out and the price per mile is left, which is $
16,500,000. This
means that the price of running the pipeline West, South, and then East is $16,500,000.

Cost of Running Pipeline Running East Through the Mountain and South To the
Refinery:
a) First, all the costs of running the pipeline through
the mountain are added together. This is $4,200,000+
$150,000 +5(75,000). This equals $4,725,000. We plug this
value into the cost equation below. The total cost of running
the pipe through the mountain comes to $
16,425,000.

2. Route Costs Through Private

Land
a) The right-of-way expense for running the pipeline through private land is $90,000 per
mile in addition to the cost of adding every extra mile of pipe, which is $300,000 per mile.
The pipe would be run on both BLM and private land, so we have to add the costs of
both of these options together. The cost equation for this option is shown below:

(d is the length of pipe on BLM ground, l is the length of pipe on private land)

Finding the Shortest Distance Across the Private Ground to the Refinery:

a) The length of the pipe from the refinery to the well is on private ground. The pipeline
going directly from the well to the refinery doesnt go on BLM ground. This means that d
will equal zero and the only variable to find is l (the length of pipeline in private land).
b) Its known that the length of the private ground running West of the well is 8 miles. To
find the desired length of private ground, we must take the total amount of private land
(32 miles) minus the amount of private land running West of the well (8 miles). This
means that we take the total distance (32)- 8, which equals 24.
c) After finding this information, the Pythagorean Theorem can be applied.
d) The well is 15 miles above the bottom boundary, and this will be the b leg of our triangle
as shown in the diagram below. The 24 miles of private land going East will be a, or the
second leg of the triangle in the diagram below.
e) The Pythagorean Theorem is used, with the variables as shown below:
. From this, we get C=28.3019434 miles. This is the length of the pipe
cutting through the private land.

a= 24 miles, b=15 miles

a represents the distance North of the bottom BLM boundary
b represents the distance found East of the well
c represents the pipeline cutting through private land

f)

The value of c is plugged into the cost function from the previous page: =$
11,037,000

The cost of running pipeline through private land is $11,037,000.

Cost of Running a Pipeline South across Private Land and

East to Refinery:

a) The figure on the right shows the pipeline going 15 miles Southward through private
ground and 24 miles East through BLM land.
b) The numbers found in the figure will be plugged into the cost function. 24 and 15 will be
used because thats the distance travelled by going down and to the right on the triangle.
d (distance of pipeline in BLM ground) doesnt equal zero this time.
= $17,850,000
The cost of running pipeline South and then East is $17,850,000.

3. Optimization of the Pipeline

a) The optimal pipeline option can be found by looking at the area between the two
different pathways running through private land.
b) The equation that will be used to find the optimal cost will be the previous total cost
equation found.
c) Calculus can be used to find when the functions cost is at its minimum by looking at when
the derivative equals zero. x (length of pipeline in shortest route across private land ) and d
(length of pipeline running and South and then East) must add up to 24 as demonstrated in the
diagram below.
e) d can be expressed as d=24-x. This way the equation is expressed in terms of one variable.
d) To find what l equals, the Pythagorean Theorem can be used.

, so

. Then this is plugged into the cost

equation to get

e) Next, the derivative of the function above will be found

and set equal to zero. This will reveal maximums and
minimums of the cost function.
f) To find the derivative:
1. c(x)=390,000(x^2+225)^()+300,000(24-x)
2. c(x)= 390,000(x^2+225)^() +7200000-300,000x

3.c(x)=390,000()(x^2+225)(-)(2x)-300,000
4.c(x)=(390,000x/sqrt(x^2+225))-300,000

The derivative is:

g) This is set equal to zero and solved below to find the x intercept and to find which x value
corresponds with the lowest y value (minimum):
1.(390x)/(sqrt(x^2+225)=300 (simplified 390,000 and 300,000)
2.(152,100x^2)/(x^2+225)=90,000 (squared each side of the equation to get rid of square root in
denominator.)
3.(1,521x^2)/(x^2+225)=900(simplified 152,100 and 90,000)
4.1,521x^2=900x^2+202500(each side of the equation was multiplied by (x^2+225)).
5.621x^2=202,500
6.x^2=326.0869565
7.x=18.05787796

Graph of c(x)
h) The graph below proves that the minimum is at 18.05787796, and the minimum amount of
money spent on the pipeline is $10,937,980.74.

g) After graphing, d is solved for by plugging the found x (minimum x value) into

This is 24-18.05787796, which equals 5.94212204. D=5.94212204

h) The l variable is solved for by plugging the above x value into

L=23.47524135
i) To find the minimum cost, both of these lengths are plugged into the total cost formula:
= $10,937,980.74. Note that
this is the same result as the graphical minimum.

4. Conclusion
To find the minimum cost you can run the pipeline for, the derivative of the derived cost function
must be set equal to zero. From the well, the pipeline should go in the South -East direction for
approximately 23.475 miles. From there it will have reached BLM ground and it should go East
for 5.942 miles. The total expenditure will be $10,937,980.74. The other cost options were
$16,500,000 and $11,037,000, so this option saves the company up to $5,562,020.

Reflection
Ive learned that Calculus is a very useful tool. It has many more applications than Id
previously imagined. One of the most obvious is plotting accurate graphs using the first and
second derivatives. Graphical knowledge is very important when it comes to accurately mapping
and displaying data, so Id say that calculus definitely enhances this skill. Mapping change is
something youll encounter in almost any setting, whether youre presenting sales projections in
a business meeting or informing a board about the rate of bacterial growth in a science lab. The
concept of related rates is also used in a variety of areas. For example, biomedical engineers
may use related rates to calculate the rate of blood going through a blood vessel at a certain
instant.
Perhaps one of the most valuable things weve learned in this class is optimization.
Optimization tells you the minimums and maximums of the function by getting the derivative and
setting it equal to zero. This is so useful because it allows you to mathematically find out how to
do a project in the most efficient way. You might want to find dimensions that will maximize the
area, or production quotas that will maximize profit and minimize costs. I know that this is used
in everyday life. When I see construction work, Im sure that theres been math done to make
sure theyre using the correct amount of asphalt and concrete. If people just took blind guesses

when it came to doing projects or running businesses, the world would be a very chaotic place.
Optimization, like graphing, is useful in all professions.
Im considering going into finance, and I think that Calculus will be a fantastic tool in this
field. Optimization will help me calculate minimum and maximum costs or profit so that whatever
Im doing will yield the greatest returns. Calculus also allows you to calculate the rate at which
your profit is increasing, which is an important thing to know as yields change. If I was looking at
the stock market, I could use calculus to look at trends graphically.Observing the instantaneous
rate of change at points on a graph could be used to predict future maxima and minima, which
would then allow you to know the best time to buy and the best time to sell. Among many other
applications, calculus has armed me with knowledge that could really give me an edge in my
future career.