2014

PIPELINE PROJECT

Hodan Abdi
SLCC
11/25/2014

Salt Lake CC
Math 1210
Pipeline Project
Fall 2014
The U.S. Interior Secretary recently approved drilling of natural gas wells near Vernal, Utah.
Your company has begun drilling and established a high-producing well on BLM ground. They
now need to build a pipeline to get the natural gas to their refinery.
While running the line directly to the refinery will be the least amount of pipe and shortest
distance, it would require running the line across private ground and paying a right-of-way fee.
There is a mountain directly east of the well that must be drilled through in order to run the
pipeline due east. Your company can build the pipeline around the private ground by going 5
mile directly west and then 15 miles south and finally 45 miles east to the refinery (see figure
below). Cost for materials, labor and fees to run the pipeline across BLM ground is $500,000
per mile.
Cost of drilling through the existing mountain would be a one-time cost of $3,000,000 on top of
the normal costs ($500,000 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 $420,000 and will delay the project by 6 months costing the company another
$120,000 per month.
For any pipeline run across private ground, your company incurs an additional $350,000 per
mile cost for right-of-way fees.
Your company has asked you to do the following:
a)

BL
M 15
mi
Gr
nn
ou le
nd s

Given

Determine the cost of running the pipeline strictly on BLM ground with two different
cases.

BLM Ground

5 mile

Private Ground

45 miles - BLM Ground

BLM $500,000 per mile

Private $850,000 per mile
Tunnel $3,000,000
Study $1,140,000
Case 1
Cost = BLM Miles
Cost = $500,000 45
Cost = $32,500,000

Case 2

BL
M 15
Gr mi
ou le
nd s

BLM Ground

5 mile

Private Ground

45 miles - BLM Ground

Cost = study + tunnel + BLM miles
Cost = 1,140,000 + 3,000,000 + 500,000 (55)
Cost = $31,640,000

b) Determine the cost of running the pipeline:

Case 3

BL
M 15
Gr mi
ou le
nd s

BLM Ground

5 mile

Private Ground

45 miles - BLM Ground

Cost = private south BLM east
Cost = 850,000 15 + 500,000 40
Cost = $32,750,000

Case 4

BL
M 15
Gr mi
ou le
nd s

BLM Ground

5 mile

Private Ground

45 miles - BLM Ground

x = ((40)2 + (15)2)

x = 1600 + 225
x 42.7 miles
Cost = private x
Cost = 850,000 42.7
Cost = $36,295,000
c) Determine the optimal way to run the pipeline to minimize cost. Determine the
length of pipe that runs across private land and how far from the refinery it starts
running on BLM land. Clearly show all work including drawing the pipeline on the
figure below. Make it very clear how you use your knowledge of calculus to
determine the optimal placement of the pipeline.

Case 5
By using my calculus knowledge

BL
M 15
Gr mi
ou le
nd s

BLM Ground

5 mile

Private Ground

45 miles - BLM Ground

C = green line
By using Pythagorean Theorem, I can find c.

C = 152 + (40 x) 2
Solve for x
40 x = c2 152
x = 40 c2 225
Cost = private c + BLM x
Cost = 850,000 c + 500,000 (40 c2 225

= 850,000 + 500,000 (

=0

Let

0 = 850,000

500,000c = 850,000
500,0002c2 = 850,0002c2 850,0002 225
Solve for c
c=

(
(

)(
) (

)
)

c 18.6 miles
x = 40 - (

x = 29.1 miles
Cost = private c + BLM X
= 850,000 18.6 + 500,000 29.1
Cost = 30,360,000

Reflection: I learned a lot from this class, and this project. I loved Math ever since I was young, I
enjoyed solving math equation, and finding the answers for every problem. But, when I finished high
school, I started asking questions myself, I will ask myself what is the purpose of math, why do we have
to spend more time doing all these problem if we are not applying them in real life problems. But, when I
took this class, I got answers for all my questions. The reason, we study algebra, geometry, trigonometric,
and other math fields was to understand Calculus. After taking this class I learned a lot of new concepts
that I didnt know before, Ive also learnt that all these concepts and equations are more than just
equations and that they can apply in real life. Calculus will help me throughout my life, my major is
Chemistry. And calculus is important for all my advanced chemistry classes. The concept of differentials
is important in thermodynamics, and also for some of my organic chemistry classes.