Pipeline Project

Math 1210
Quan Tang
December 2, 2014

Dear CEO,
I have put together a report of my findings on which scenario will be the most beneficial to our
company. Below are the different routes the pipeline can be built to reach our refinery. I have
found the least costly path. Please review my findings. Thank you.
Sincerely,
Quan Tang

Figure 1

The first scenario is running the pipeline only on BLM ground. There are two cases for this
scenario as can be seen in Figure 1.
1. Heading west, south, and then east to the refinery.
a. The total cost for this case is $32,500,000
- C(x) = $500,000(x)
- C(65) = $500,000(65) = $32,500,000
2. Heading east through the mountain and then south to the refinery.
a. The total cost for this case is $31,640,000
- $3,000,000 one-time cost of drilling through mountains
- $420,000 for an environmental impact study
- $120,000/month for a 6 month delay
- C(x) = $3,000,000 + $420,000 + ($120,000*6) + $500,000(x)
- C(x) = $4,140,000 + $500,000(x)
- C(55) = $4,140,000 + $500,000(55)

Figure 2

The second scenario is running the pipeline through private ground. An additional $350,000 per
mile is charged for right-of-way fees. Two cases from this scenario can be seen in Figure 2.
1. The shortest distance across the private ground to the refinery.
a. The total cost for this case is $36,312,015
i. 15^2 + 40^2 = 1,825 ; (1,825) = 42.72 miles
ii. C(x) = $850,000x
iii. C(42.72) = $850,000(42.72)
2. Straight across the private ground, then east to the refinery.
a. The total cost for this case is $32,750,000
i. C(x,y) = $850,000x + $500,000y
ii. C(15,40) = $850,000(15) + $500,000(40)
However the most efficient and least costly case in shown in Figure 3.

Figure 3

The cost function I created for Figure 3 is C(x) = $850,000* (x^2+15^2) + $500,000*(40 x)
- C(x) = 850,000* (x^2+15^2) 500,000x + 20,000,000
- X^2 + 15^2 = y^2 ; so y = (x^2 + 15^2)
The cost function creates this graph:

Y = 850,000* (x^2+15^2) 500,000x + 20,000,000

We can then find our minimum and the lowest cost of creating the pipeline with the derivative of
our C(x) function.
C(x) = 850,000*(1/2(x^2 + 225)^-(1/2)*(2x) 500,000
After finding the derivative we set it to equal zero and solve for x. By solving for x it will give us
the minimum or the lowest cost of laying the pipeline.
850,000x / (x^2+225) = 500,000 multiple both sides by (x^2+225) and divide by 500,000
850,000x / 500,000 = (x^2+225)
1.7x = (x^2+225) square each side
2.89x^2 = x^2 + 225 subtract x^2
1.89x^2 = 225 divide by 1.89
x^2 = 119.048 square root of each side
x = 10.91.09 miles

With x we are able to solve for the triangle

x^2 + 15^2 = y^2
10.91^2 + 15^2 = 344.048
344.048 = 18.5485 miles

With this information we are able to determine the minimum value

(40 10.91)*500,000 + 18.54(850,000) $30,310,795

Reflection
This semester was an awesome one! I have learned that Calculus is used everywhere in everyday
life. Calculus is especially important in optimization problems. For example, maximizing the
area of a fencing unit while minimizing the amount of fencing needed. Farmers can most

definitely benefit from using Calculus. Another application of Calculus is using the derivative of
a position function to get the velocity function and finding the derivative of that function to get
the acceleration function. With knowing this knowledge, physics will be so much easier to
understand.
I am becoming an Engineer Major so all of these math skills that I am learning will continue on
with me for the rest of my life. Engineers use Calculus and higher level math to find the most
efficient way to produce a product/substance while wanting to minimize the cost of material
used. Saving money and making money is the priority of every company. That task becomes a
whole lot easier with Calculus!