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Pipeline Project Math 1210-2

The company has begun drilling a productive well on BLM land and needs to determine the most cost-effective route to build a pipeline connecting the well to a nearby refinery. There are two main options: running the pipeline entirely on BLM land or partially on private land. Running entirely on BLM land would cost between $28.9-26.2 million depending on the route. Running partially on private land along the shortest route would cost $26.6 million but another route using less private land and more BLM land could minimize costs to around $25.3 million. Determining the optimal route involves calculating the angles and distances that minimize a cost function for the portions on private vs. BLM land.

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72 views

Pipeline Project Math 1210-2

The company has begun drilling a productive well on BLM land and needs to determine the most cost-effective route to build a pipeline connecting the well to a nearby refinery. There are two main options: running the pipeline entirely on BLM land or partially on private land. Running entirely on BLM land would cost between $28.9-26.2 million depending on the route. Running partially on private land along the shortest route would cost $26.6 million but another route using less private land and more BLM land could minimize costs to around $25.3 million. Determining the optimal route involves calculating the angles and distances that minimize a cost function for the portions on private vs. BLM land.

Uploaded by

api-302479969
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Pipeline Project

The company has begun drilling down in Vernal and now have a very high producing well on the
BLM ground. Things are going well so far. What we need now is to determine where to build a pipeline
in order to connect the well to the refinery. Although running the pipeline straight to the refinery would
be the shortest distance, it doesnt necessarily mean it will be the most cost effective way. There a few
ways we could do this. But first, here are the costs of running the pipeline:
ACROSS BLM GROUND: $475,000 per mile
ACROSS PRIVATE GROUND: $825,000 per mile. $475,000 per mile plus an extra $350,000 per
mile for right-of-way fees
THROUGH THE MOUNTAIN: One-time cost of $4,600,000 on top of normal costs ($475,000 per
mile). The BLM will also require an environmental impact study before we will be allowed to go this way.
ENVIRONMENTAL IMPACT STUDY: $500,000 and a 6 month delay, costing the company another
$115,000 per month.
Here are the possible ways we can run the pipeline and their costs.

BLM Ground

BLM Ground
14 miles

9 miles

Private Ground

Type equation here.

COST OF RUNNING PIPELINE ON BLM GROUND ONLY

TWO CASES:
1. Run the pipeline west, then south, then east to the refinery.

BLM Ground
14 miles

9 miles

2.
BLM
Ground

Private Ground

38 miles, BLM Ground



9 + 14 + 38 = 61


61(475,000) =
$, ,

2. Run the pipeline east through the mountain, then south to the refinery.

BLM Ground

BLM Ground
14 miles

9 miles

3.

Private Ground

38 miles, BLM Ground


,
29 + 14 = 43

.
43(475,000) = 20,425,000

20,425,000 + 4,600,000 =
$, ,

$500,000 for the study

6 month delay

$115,000 extra per month


25,025,000 + 500,000 + 6(115,000) =
$, ,

COST OF RUNNING THE PIPELINE ON PRIVATE GROUND


TWO CASES:
1. Running the pipeline the shortest distance between the well and the refinery
across the private ground.

BLM Ground

BLM Ground
14 miles

9 miles

Private Ground

38 miles, BLM Ground


14 miles

29 miles

2 + 2 = 2
142 + 292 = 2
1037 = 2
= 1037



(825,000) 1037 =
$26,567,049.61
2. Running the pipeline south across the private ground, then straight east to the refinery.

BLM Ground

BLM Ground
14 miles

9 miles

Private Ground

38 miles, BLM Ground



14
29


14(825,000) + 29(475,000) =
$, ,

MINIMIZING COST
Determine 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. Use this function to find 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. Determine the angle at which
your optimal path leaves the well.

BLM Ground

BLM Ground
14 miles

9 miles

Private Ground

38 miles, BLM Ground


.
.

14 miles

x miles

29 - x miles


2 + 2 = 2
142 + 2 = 2
196 + 2 =c

() = 825,000 (196 + 2 ) + 475,000 (29 )
,
. .
, .
1
1
() = 825,000 ( (196 + 2 )2 ) (2)) 475,000
2

825,000
196 + 2

475,000

825,000
196 + 2

475,000 = 0

825,000
196 + 2

= 475,000

825,000 = 475,000196 + 2
33
= 196 + 2
19
1089 2
= 196 + 2
361
728 2 = 70,756
2 =

70,756
728

2,527
=
26


Positive

Negative

Positive

2,527
26

2,527
26

.
.
2

2,527
2,527
2,527
(
) = 825,000 196 + (
)
) + 475,000 (29
26
26
26
(

)
= $, , .

14 miles

196 + 2 miles

x miles

29 - x miles

2,527
2,527
29
+ 196 +
13
13

= .

14 miles

19.758 miles

9.85 miles

29 - x miles

sin =

9.85
19.758

.
.

C(X) Graph
25500000

25000000

24500000

24000000

23500000

Min at 9.86

23000000
0

10

12

14

16

I think calculus is really helpful. There are a lot of things in this math class that I feel like really have
no value, but in reality it does. I know as an engineer I am going to be using a lot of integration,
velocity and acceleration, and optimization all the time so I need to remember what I am learning
and remember that it has value. I think the thing that is most helpful in calculus is optimization. I
know for the career I want, Im going to be using this all the time. I want to be a building engineer
and help architects create what theyve envisioned. Not only at work, but at home too. I know
working out in the garden, there have been a lot of times weve wanted to build a fence or plant
some flowers somewhere and weve just had to guesstimate on how much material we will need.
We could have just used optimization. Its quick and its accurate and we wouldnt have had to spend
so much time guessing about how much something will cost or how much material we will need. I
feel like calculus is a useful tool for these reasons.

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