Pardo 1

Pipeline Project
Rembrand Paul Pardo
Math 1020

Costs Report

a) Pipeline running strictly on BLM ground:

i) One running west, south and then east to the refinery.

8 miles BLM Ground

BLM Ground
15 miles

Private Ground

32 miles, BLM Ground

Total Distance = 8 miles west + 15 miles south + 32 miles east = 55 miles

Total Cost = 55 miles ($ 350,000 per/mile) = $ 19,250,000

 Pardo 2

ii) One heading east through the mountain and then south to the refinery.

8 miles BLM Ground

BLM Ground
15 miles

Private Ground

32 miles, BLM Ground

Total Distance = 24 miles east + 15 miles south = 39 miles

Cost per mile = $350,000

Drilling = $ 4,500,000

Environmental Impact = $180,000

Delay Cost = $ 75,000 * 5 = $ 375,000

Total Cost = 24 miles ($350,000) +15 miles ($350,000) +4,500,000 +180,000 +375,000 = $ 18,705,000
 Pardo 3

b) Cost of running the pipeline:

i) The shortest distance across the private ground to the refinery.

8 miles BLM Ground

BLM Ground
15 miles

Diagonal Private Land Distance = 152 + 242 = 801 = 389 = 28.3019434 miles

Private Land Cost = $350,000 + $90,000 = $ 440,000

Total Distance = 28.3019434 miles ($440,000) = $ 12,452,855.09

 Pardo 4

ii) Straight south across the private ground, then straight east to the refinery.

8 miles BLM Ground

BLM Ground
15 miles

Private Ground

32 miles, BLM Ground

Private Land Distance = 15 miles south

BLM Distance = 24 miles east

Private Land Cost = $350,000 + $90,000 = $ 440,000 per mile

BLM Cost = $ 350,000 per mile

Total Cost = 15 miles ($ 440,000) + 24 miles ($ 350,000) = $ 15,000,000

 Pardo 5

c) The cost function for the pipeline for the configuration involving running from
the well across the private ground at some angle and intersecting the BLM
ground to the south and then running east to the refinery.

8 miles BLM Ground

BLM Ground
15 miles

Private Ground

x 24-x
Optimal Private Land Distance = 152 + 2

BLM Distance = 24 miles x miles east

Private Land Cost = $350,000 + $90,000 = $ 440,000 per mile

BLM Cost = $ 350,000 per mile

Cost Function c(x) = 152 + 2 ($ 440,000) + (24-x) ($ 350,000)

First Derivative:
1
C(x) = d/dx [(440,000) (152 + 2 )2 + (24-x) (350,000)]
1
2
C(x) = (440,000)(152 + 2 ) 2 + (350,000)(1)
2

440,000
C(x) = - 350,000
152 + 2
 Pardo 6

Critical Number:

440,000
0= - 350,000
152 + 2
440,000
350,000 =
152 + 2

350,000
=
440,000 152 + 2
2
35 2
( ) = ( )
44 152 + 2

1,225 2
=
1,936 152 + 2

1,225 (152 + 2 ) = 1,936 2

275,625 = 1936 2 - 1225 2

275,625 = 2 (711)

275,625
x= = 19.69 critical number
711

Total Cost = C (19.69) = 152 + 19.692 ($ 440,000) + (24-19.69) ($ 350,000) = $ 12,399,687.49

Optimal Private Land Distance = 152 + 2 = 152 + 19.692 = 24.75 miles

BLM Distance = 24 miles x miles east = 24 19.69 = 4.31 miles

 Pardo 7

Cost summary:

a)

i) $ 19,250,000

ii) $ 18,705,000

b)

i) $ 12,452,855.09

ii) $ 15,000,000

c) $ 12,399,687.49 (Best option)

Angle of optimal path:

90 -

24.75

15

180

19.69
15
sin = = 0.61
24.75

15
= sin1 = sin1 0.61 = 37.31
24.75

= 180 90 37.31 = 52.69

 Pardo 8

d)

Graph of Cost Function c(x) = 152 + 2 ($ 440,000) + (24-x) ($ 350,000)

 Pardo 9

Report:

In this project, we observe different routes that the company can take. Two of the routes involve

going strictly on BLM ground, one of which involves going through the mountain. The third

option is to run the pipeline strictly on private ground. The fourth option would involve a

combination of running the pipeline on BLM ground and private ground.

Please see above to observe the cost of the different options. As you can see two scenarios are

listed. BLM cost and BLM cost plus going through the mountain. My finding shows that scenario

a) i) will cost $ 19,250,000 and a) ii) will cost $ 18,705,000. Part b) i) shows the cost of running

strictly on private ground. In finding the hypotenuse and multiplying it by the cost of the private

ground, the cost is $12,452,855.09, de second part of b, ii), shows the combination of the of

BLM and private ground with a cost of $ 15,000,000. In part c) I found the optimal pipeline route

which involves going on private land and BLM ground. Although the private ground is

expensive, I found the minimum distance needed to be on private ground added it to the BLM

costs. This route is the least expensive at $ 12,399,687.49. Part d) shows a sketch of the cost

function. This is the route that needs to be taken to save costs. Hopefully this report will be

helpful to save costs for the company.

 Pardo 10

Reflection

Throughout this semester, I learned a lot of useful things and concepts in Math 1210

Calculus I. The new knowledge has given me new ways of thinking about math problems and

how this can be applicable to the real-life problems that I might encounter in my professional

life.

I found limits to be very interesting not only because they are the foundation for a lot of

calculus concepts but also because they can give you a numerical approximation that is so close

that it is eventually considered the limit. The concepts of derivation and integration were also

something that I found really useful. For example, when solving problems of position, velocity

and acceleration with the calculous concepts of derivation and integration we find that is easier

to solve them with those tools than another mathematical concept. These concepts also work for

finding the optimal values from different options. As we saw in the pipeline project we found the

optimal value to have the least cost possible for the company. I was also very interested in

LHospitals theorem. I think the reason I was so intrigued by LHospital was because I have

been told all of my life basically that you cannot divide by 0 or 0/0 doesnt exist but LHospital

proved that a limit does exist if you just take the derivative of the top and the derivative of the

bottom of the equation separately.

Even though the semester was hard and learning about the new concepts was a little hard

because they were new to me, I really enjoyed the Calculus I. Also, the things learned in this

semester are going to be useful for the areas I am interested in. As we saw with the project and

throughout the semester, knowing about calculus is a necessity for Engineering and Business,

which are my two carrier options.