CALCULUS PIPELINE PROJECT

Landon Fisher
07/18/15
*The company will be constructing a pipeline, which reaches from
a recently drilled natural gas well to our refinery. In this report I
will present different options of where to build the pipeline and
the cost of each option. The first portion will be the calculations
and in a report I will present my findings to the company CEO in a
clear and precise manner. I will create a cost function and using
this function we will be able to see the optimal way to put in the
pipeline.
a) Cost of running the pipe strictly on BLM ground. Two
options:
i.
Running west, south and then east to the
refinery.
Calculations
Total distance: 64 miles
Cost per mile: $480,000
64x480,000=30,720,000
TOTAL COST: $30,720,000
ii.

Heading east through the mountain and then

south to the refinery.
Calculations
Total distance: 48 miles
Cost per mile: $480,000
Cost to run through mountain: $4,500,000
Environmental impact study: $600,000
Delay costs from study: $100,000 per month for 8 months
(48x480,000)+4,500,000+600,000+(100,000x8)=28,940,000
TOTAL COST: $28,940,000
b) Two additional options:
i.
The shortest distance across the private ground
to the refinery.
Calculations
2
2
Total distance: 16 + 32 = 1280 (All is on private ground)
Cost per mile: $480,000
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CALCULUS PIPELINE PROJECT

Additional cost for private ground: $360,000 per mile
480,000+360,000
)
1280

= 1280(840,000) =30,052,753.62
TOTAL COST: $30,052,753.62
ii.

Straight south across the private ground, then

straight east to the refinery.
Calculations
Total distance: 48 miles
Cost per mile: $480,000
Additional cost for private ground: $360,000 per mile
Distance on private ground: 16 miles
(16x360,000)+(48x480,000)=28,800,000
TOTAL COST: $28,800,000
c) Cost function for pipeline running from the well
across the private ground and intersecting the BLM
ground to the south and then running east to the
refinery.
Natural Gas
8 miles BLM
ground

16 miles BLM
16
ground
miles

Mountai
n

16 + x
2

BLM
Private
Ground
GROUND

Private
Ground

BLM
GROUND

(3232 miles

40 miles BLM
ground

C(x)=480,000(32-x) + 840,000(

Refin
ery

162+ x2

C(x)= 15,360,000-480,000x + 840,000

256+ x 2

CALCULUS PIPELINE PROJECT

Optimal way to run the pipeline to minimize cost.

Cost function:
C(x)= 15,360,000-480,000x + 840,000

256+ x 2

2 (1/ 2)
Rewrite as C(x)= 15,360,000-480,000x + 840,000 (256+ x )

Find Derivative
C(x)= -480,000 + 420,000(256+x^2)^(-1/2)*2x
= -480,000 + 840,000x(256+x^2)^(-1/2)
Set equal to zero and solve for x
480,000 = 840,000x(256+x^2)^(-1/2)
=x / 256+ x
( 480,000
840,000 )

( 47 )=x / 256+ x

4 256+ x2=7 x
16 ( 256+ x 2 )=49 x2
16 ( 256 ) +16 x 2=49 x 2
16 ( 256 )=33 x 2
416
=x
33
x=64 / 33
x

11.141

We can now find the length of pipe on private land, the angle at
which the pipeline leaves the well and how far from the refinery it
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CALCULUS PIPELINE PROJECT

starts running on BLM land. By knowing this we will know the
cheapest route.
64 / 33
tan
= 16 / )

33
= 16( 64 )
= 33/4
=tan1 33/4

= 55.15

This is the optimal angle at which the pipe will leave the well.
We now solve for the length of pipe that will run on private
ground.

162+ x2
256+33/16
=16.064 miles on private ground
The distance from the refinery that the pipe will stop running in
private land and start on BLM land.
3264 / 33
=20.859 miles on BLM land.
The total distance is the sum of each of the previous distances.
16.064 + 20.859 = 36.923
Total distance: 36.923
Optimal Cost
64
(
)
C( 64 / 33 = 480,000 (32- 33 )+840,000

4096
)
33

= 480,000(32-

64
)
33 )+840,000

(8448+ 4096)/33

= 480,000(32-

64
)
33 )+840,000

(12444)/33

=26,324,150.54
Optimal cost of pipeline: $26,324,150.54
4

256+(

CALCULUS PIPELINE PROJECT

Computer generated graph of the optimal cost function.

CALCULUS PIPELINE PROJECT

Vernal Utah Natural gas Pipeline Project

For Company CEO
Conclusion
I have concluded that there are many options in which we can run
the pipeline from the natural gas well to our refinery. After
running the calculations I have found the most cost effective way
to run the pipe.
Option a.i.:
This option is simple We run the pipe on BLM ground and cover a
distance of 64 miles. We head west, south and then east to the
refinery avoiding private ground. At $480,000 per mile the total
cost is $30,720,000

BLM
Ground
8
miles

16
BLM
miles
Ground

Wel

CALCULUS PIPELINE PROJECT

40
miles
BLM
Ground

Refine
ry

Option a.ii.:
In this option the pipeline heads east and then south to the
refinery. The benefits of this is the distance is much smaller but
the difficulty is that there is a mountain directly east of the well
that will add many costs. It will cost $4,500,000 to go through the
mountain. We will need an Environmental impact study that will
cost $600,000 and the study will cause delays. These delays will
cost $100,000 per month for 8 months. It will all be on BLM
ground and cost $480,000 per mile and has a distance of 48
miles. The total cost will be $28,940,000.

Well

Mount
ain
32
miles

BLM
Ground

BLM
16Ground
miles

Refinery

CALCULUS PIPELINE PROJECT

Option b.i.:
The pipeline will go in a straight line from the well to the refinery.
This is a great option as the distance is the smallest of all of the
options but we must take into account that there are right of way
fees for every mile. The cost of the pipe is $480,000 per mile but
an additional $360,000 per mile will be charged when inside of
the private ground. The entire distance will be on private land
costing us $840,000 per mile. Using the Pythagorean theorem we
find that the distance is 1280 . The total cost will be
$30,052,753.62

We

1280miles

16
Private
Ground

32
miles
Refine
ry

CALCULUS PIPELINE PROJECT

Option b.ii.:
The pipeline will go straight south through private ground. Once
the pipe reaches BLM land and is directly west of the refinery the
pipe will head directly east to the refinery. The pipe will be on
private land for 16 miles and will cost $840,000 per mile. Once it
reaches BLM ground it will cost $480,000 per mile and will travel
32 miles. The total cost will be $28,800,000.

Wel
Private Ground

16

32
BLM
Ground

Refine

Additional Option: The pipeline can leave the well at any angle
and reach BLM ground and continue to the refinery.

CALCULUS PIPELINE PROJECT

On page 2 Part C, I was able to create a cost function by using our
known distances and plugging in variables for the unknowns. The
cost function is:
C(x)= 15,360,000-480,000x +
840,000

256+ x 2

On page 3 I used my cost function to minimize the cost of the

pipeline. I did this by taking the derivative of the function. I set it
equal to zero and solved for x. This X value gave me the distance
of BLM ground covered before the pipe reaches the BLM ground.
The distance is 64/ 33 . Knowing this x value I used
trigonometry to solve for the angle at which the pipe leaves the
well. I called the angle alpha and I used tangent to solve for the
angle. I was also able to solve for the distance covered on private
ground, the distanced covered on BLM ground and the total
distance the pipe travels. Plugging our x value into our cost
function gives us the total cost of the pipeline. The optimal cost is
$26,324,150.54.

Wel
8
miles

16
miles

Mountain

=55.15

16.064
miles

X=64/

33
10

Private Ground

20.859

CALCULUS PIPELINE PROJECT

32
40 miles BLM
ground

Refine
ry

REFLECTION
I can see that calculus applies to the real world in everything we
do. One of the main things that has been interesting is learning
about all that we can do with derivatives of functions. I am
currently working in a geotechnical engineering firm where we
work with soils, foundations, retaining walls and much more. I
recently started working with excavations. Many times we
discover collapsible soils until a certain depth and we have to
have the excavators over excavate a couple feet, then they will
refill the foundation with new better soil. This is where the
calculus comes into play. Water must be added to the soil to get
optimum density so the building or house is strong. The soil is
tested in the lab and we find something called optimum water
content. We use a graph and there is a point where the soil is
strongest. That is the amount of water that will be added to the
soil and compacted for a strong foundation. Calculus can be used
to find that optimum point.
Calculus can also be applied in other jobs we do. When I have
been working in the lab I do a test called a resistivity test. We put
soil into a little box and have wires plugged in both sides and we
get a reading. We then add three percent water and retest. The
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CALCULUS PIPELINE PROJECT

resistivity reading will decrease for a while and then start going
back up. This test deals with corrosion. It tells us how the soil will
corrode different metals. Calculus then comes into play. We have
a graph and the minimum resistivity point will tell us a lot about
how the soil will affect the materials placed in it. It might be a
retaining wall, a building or even a pipe in the ground nobody
wants there project to corrode and disintegrate. Calculus can be
used to find that minimum point. By finding the derivative, the
critical points and the values we can accomplish a lot. This is
important for the effectiveness and public safety.
The more I am learning about calculus the more I am seeing real
life applications of math. When we really master the concepts,
they come to us when we need them. This is important in any
industry. Calculus can be used to identify unknowns, solve
problems and create many new things. I have seen my abilities
increase as I have learned more about calculus and I am excited
to learn more and apply what I am learning.

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