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Pipeline Project: 6 Miles BLM Ground

The document analyzes the optimal route and cost for a pipeline to transfer natural gas from a producing well to a refinery. It considers options running entirely on Bureau of Land Management (BLM) ground, crossing private land, and different combinations. The most cost-effective option is determined to be a route crossing private land at an angle of 51 degrees, traveling 23.994 miles across private land and 3.273 miles on BLM ground, for a total cost of $10,884,801.69.

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52 views

Pipeline Project: 6 Miles BLM Ground

The document analyzes the optimal route and cost for a pipeline to transfer natural gas from a producing well to a refinery. It considers options running entirely on Bureau of Land Management (BLM) ground, crossing private land, and different combinations. The most cost-effective option is determined to be a route crossing private land at an angle of 51 degrees, traveling 23.994 miles across private land and 3.273 miles on BLM ground, for a total cost of $10,884,801.69.

Uploaded by

api-352286915
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Pipeline Project

BLM Ground
6 miles
BLM Ground
15 miles

Private Ground

28 miles, BLM Ground

In regard to the drilling and established high-producing well on BLM ground in Vernal, Utah, the following is a detailed
explanation of the estimated pipeline cost required to transfer natural gas to the refinery. Below you will find different
options with associated cost and, by comparison, the most optimal route for the pipeline.

a) Determine the cost of running the pipeline strictly on BLM ground with two different cases:
i) Running West, South, and then East to the refinery.

West= 6($320,000) = $1,920,000


South= 15($320,000) = $4,800,000
East= 28($320,000) = $8,960,000
Total= $15,680,000

6 miles BLM Ground


BLM Ground
15 miles

Private Ground

28 miles, BLM Ground


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

East through the mountain= 22($320,000) = $7,040,000


South= 15($320,000) = $4,800,000
Drilling= 1($4,400,000) = $4,400,000
Impact study= 1($200,000) = $200,000
8 Month Delay = 8($85,000) = $680,000
Total = $17,120,000

6 miles BLM Ground


BLM Ground
15 miles

Private Ground

28 miles, BLM Ground

b) Determine the cost of running the pipeline:


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

22^2 + 15^2 = z^2

z = √(22^2 + 15^2)

z = √(709)

z = 26.627

26.627($320,000 + $90,000)

Total = $ 10,917,092.1

6 miles BLM Ground


BLM Ground
15 miles

Private Ground

28 miles, BLM Ground


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

15($320,000 + $90,000) = $6,150,000


22($320,000) = $7,040,000

Total = $ 13,190,000

6 miles BLM Ground


BLM Ground
15 miles

Private Ground

28 miles, BLM Ground

c) 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.

Distance from pump across private land = Z Distance on BLM Ground = 22-x
X^2 + 15^2 = z^2 z=√(x^2 + 15^2) Plug Critical Value into function:
f(x) = ($410,000)(z) + (22 - x)($320.000) f(18.727) = ($410,000)( √(18.727^2 + 225)) + (22 – 18.727)($320,000)
f(x) = ($410,000)( √(x^2 + 225)) + (22 - x)($320,000) f(18.727) = 10,884,801.69
Take the derivative:
f’(x) = (410,000)(x^2 + 225)^1/2 + (22 - x)(320,000) Total Cost = $10,884,801.69
f’(x) = 205,000(x^2 + 225)^-1/2 *(2x) - 320,000
f’(x) = 410,000x/(√(x^2 + 225)) - 320,000
Find the Critical values: Distance across private land = 23.994 Miles
410,000x/(√(x^2 + 225)) - 320,000 = 0 Distance across BLM land = 3.273 Miles
410,000x/(√(x^2 + 225)) = 320,000 It crosses at an angle of = 51.306°
410,000x = 320,000 (√(x^2 + 225))
(410,000x)^2 = (320,000 (√(x^2 + 15^2)))^2
410,000^2x^2 = 320,000^2 (x^2 + 15^2)
410,000^2x^2 = 320,000^2x^2 + 320,000^2(225)
410,000^2x^2 – 320,000^2x^2 = 320,000^2(225)
X^2(410,000^2-320,000^2) = 320,000^2(225)
X^2 = 320,000^2(225)/(410,000^2-320,000^2)
X = √(320,000^2(225)/(410,000^2-320,000^2))
X = 18.727
6 miles BLM Ground
BLM Ground
15 miles

15
Private Ground

x 22-x

28 miles, BLM Ground

d) Include a computer generated graph of the optimal cost function.

f (x) = ($410,000)( √(x^2+15^2)) + (22-x)($320,000)

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