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
miles 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) Determine the cost of running the pipeline strictly on BLM ground with two different
cases:
i)
One running west, south and then east to the refinery.
$500,000(65) = $32,500,000
ii)

One heading east through the mountain and then south to the refinery.
$3,000,000 + $500,000 (55) + $420,000 + $120,000 (6) = $31,640,000

b) Determine the cost of running the pipeline:

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

42.72= c

$350,000 (42.72) + 500,000 (42.72)= $36,312,000

ii)

Straight across the private ground, then straight to the refinery.

$500,000 (55) + $350,000 (15) = $32,750,000

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.

C(x) = 850,000 (c) + 500,000 (40-x)

C(x) = 850,000 (
C( )
.9
C(10.9) = 30,310,797.09

) + 500,000 (40-x)

d) Include a sketch of the graph of the cost function, C(x), for this pipeline for any

configuration involving crossing some private ground as well as some BLM ground.
Make sure to scale your axes appropriately and to label the minimum point.

BLM Ground

15 miles

5 mile

15

Private Ground

45 miles - BLM Ground

Write up a report of your finding to submit to your companys CEO. This report should include
all steps for any math used to make determinations asked for above as well as statements as to
the costs to be incurred by each scenario. Include any appropriate figures to make each
scenario clear. Label the scenarios as they are labeled above.
Also, in your report, include a reflection of the things you have learned in your calculus class
and how they may apply to the real world. Can you make the argument that calculus is a useful
tool? What kinds of things have you learned that can be useful in your areas of interest?
Please be specific and give some examples to back up your statements. Your reflection
needs to be typed-not hand written and included with the report.
Math 1210 is a Quantitative Studies General Education course. Scan or save a copy of your
finished report to upload to your SLCC e-Portfolio so that it can be found under this category.
You will NOT receive a grade for the assignment if it is not uploaded to your e-Portfolio.

To whom it may concern,

I have been tasked to work on the most cost effective way to lay down the pipe from the drilling
site to the companys refinery. I have concluded that the most cost effective way to lay the pipe is to
head southeast through the private land and east to the refinery which would cost $30,310,797.09. The
second option available is heading east through the mountain and then south to the refinery which
would be $31,640,000. The third option available would be heading west for 5 miles, south for 15
miles and then east for 45 miles; this option would cost $32,500,000 to lay the pipe.
I used my knowledge of calculous to help me come to this conclusion which effectively showed
me the most cost effective way to lay that pipe. First I used my knowledge in trigonometry to find the
sides of the triangle as indicated in the graph and then wrote an equation using cost as a function.
Then I took the derivative of the cost function to help me find the distance I would be traveling
southeast and east on. With that number I used it in the cost function to find the minimum cost to lay
the pipe.
I have learned to use calculous in my problem solving skills to learn how to maximize my
profits in this situation. By minimizing the cost and how long it will take to lay the pip from the
drilling site to the refinery that showed me that calculous can help me think critically of situations I
may be faced with. I could apply this to my everyday life when I am faced with the challenge of either
finding the minimum or maximum of the cost in get situation. This would be a great tool to apply in
retail when it comes to making clothes for the minimum price possible and then making as much
money possible.