Pipeline Project, Math 1210

By Andrew Campbell
Math 1210 Calculus I
Dear Ceo,
I have went through all the calculations for this project to build a pipeline
from the oil rig near Vernal to the refinery. I first went into calculating the two
scenarios for the BLM land that was requested. Then I went into the 2 scenarios with
the private land and then finished it off with showing a cost function of going
diagonally a crossed the private to BLM to try to fully minimize the costs. I trust that
by me showing you this information you will be able to see that going with the
option to go straight south across private land and then straight east to the refinery
will be the best option out of the four scenarios but you can even minimize the costs
more by choosing the 5th option. Here are the options as requested:

BLM Option 1- Running Pipeline west, south and then east to the refinery.
Conditions:

BLM Ground

8 mile

16 miles

BLM Ground

BLM land cost per mile to lay pipe $480,000

Environmental impact study charges a onetime fee of $600,000 and will
delay by 8 months causing $100,000/mo. revenue loss.

Private Ground

40 miles - BLM Ground

Calculations:
(8 mil. +16 mil. +40 mil.) X ($480,000) = $30,720,000.

BLM Option 2- Heading east through mountain and then south to the refinery.
Conditions:

BLM land cost per mile to lay pipe $480,000

Environmental impact study charges a onetime fee of $600,000 and will
delay by 8 months causing $100,000/mo. revenue loss.
One-time Mountain Tunnel Cost $4,500,000

BLM Ground

16 miles

BLM Ground

8 mile

Private Ground

40 miles - BLM Ground

Calculations:
(32mil+16mil) X ($480,000) =$23,040,000. $23,040,000+
$4,500,000tun.fee=$27,540,000.
$27,540,000+$600,000enviromental+$800,000delay loss income=$28,940,000.

Private Option 1- Shortest distance across the private ground to the refinery.
Conditions:

Cost per mile to lay pipe $480,000

Additional cost per mile to lay pipe on private $350,000

BLM Ground

16 miles

BLM Ground

8 mile

Private Ground

40 miles - BLM Ground

Calculations:
(32mil ^2 +16mil^2)= Direct line^2= 1280mil. Then you take 1280mil X
($480,000+$350,000) = $29,674,982.74.

Private Option 2-Straight south across the private ground, then straight east
to the refinery.
3

Conditions:

Cost per mile to lay pipe $480,000

Additional cost per mile to lay pipe on private $350,000
BLM land cost per mile to lay pipe $480,000
Environmental impact study charges a onetime fee of $600,000 and will
delay by 8 months causing $100,000/mo. revenue loss.

BLM Ground

16 miles

BLM Ground

8 mile

Private Ground

40 miles - BLM Ground

Calculations:
(16mil+32mil) X $480,000= $23,040,000. $23,040,000 + (16mil private X
$350,000) = $28,640,000.

Cost Function-Determining the cost function for pipeline going diagonally a crossed
the private to BLM and then to refinery.
Conditions:
4

Cost per mile to lay pipe $480,000

Additional cost per mile to lay pipe on private $350,000
BLM land cost per mile to lay pipe $480,000
Environmental impact study charges a onetime fee of $600,000 and will
delay by 8 months causing $100,000/mo. revenue loss.

BLM Ground

8 mile
16 miles

BLM Ground

35.32
deg. ->

11.34 Miles

Private Ground
32Mile-x= 20.66

40 miles - BLM Ground

Calculations: This is how to find the optimal way for the least costs available by
taking the derivative as I will show in steps.
A) Set up Pythagorean theorem for y. y= ( (16^2+x^2))
B) Create a cost function by solving for x. C(x) = $830,000(16^2+x^2)) +
$480,000(32-x).
C) Next is when you find the derivative. C(x) = $415,000(16^2+x^2)) (2x)$480,000.
D) Then you set equal to zero and solve for x. 0=$415,000( (16^2+x^2)) (2x)$480,000.
$480,000=$830,000x ( (16^2+x^2)) -> $830,000/$480,000=
(16^2+x^2) ->
($830,000/$480,000)^2= ( (16^2+x^2)) ^2-> 2.99x^2=256+x^2>0=256-1.99x^2->
(x^2) =128.64-> x=11.34. This is the ground across the BLM that is not in
the optimum path that we did not know.
E) Next you plug x into Pythagorean Theorem. Y= (16^2+11.34^2) ->
y=19.61. This value is the optimal way across the Private ground.
F) So finalizing this equation by plugging in the x and y values that we found to
minimize costs we see that: $830,000(19.61) + $480,000(32-11.34) =
$26,193,100 is the cost which will minimize the cost.
5

The point is at
(11.34,261931

Reflection:
I feel that calculus can be useful in anyones life as long as you are dealing
with something that needs to be calculated. Calculus has shown me how to
maximize revenue or to minimize costs. For an example if you are wanting to start
your own business you can apply calculus to find the best way to minimize costs of
the business, as well as to find the best way to maximize revenue. Another part of
calculus that can be useful is finding the average or instantaneous velocity. This can
help with calculating gas mileage by seeing your average speed and the miles per
gallon you were getting while driving. Some other things I can find useful is finding
the best way to lay fencing in an area to maximize the area with the amount of
fencing available. There are a variety of different opportunities to use calculus in
day to day situations you just have to recognize it when it is available to use.