D Gentry Bradshaw Pipeline term project Fall 2015 Part a Around the mountain and Private land Cost 6051540 miles pipeline 500000mile Total 3000000000 Through the mountain and across BLM land ID: 514376
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Slide1
Vernal, UT Pipeline
D. Gentry Bradshaw
Pipeline term project Fall 2015Slide2
Part a)
Around the mountain and Private land:
Cost: 60(5+15+40) miles pipeline, @ $500,000/mile.
Total: $30,000,000.00
Through the mountain and across BLM land:
Cost: 50(15+35) miles pipeline, @$500,000/mile, $2,000,000 for the mountain bore and drill, $320,000 + $120,000/month for 4 month ($800,000) for the environmental survey.
Total:$27,800,000.00Slide3
Part a)
Shortest pipeline route:
Cost: 38.08 miles(
sqrt
(15^2+35^2)) @ $850,000($500,000+$350,000 right-of-way)/mile.
Total: $32,367,035.70
Cutting through the Private lands avoiding the 5-mile jog west:
Cost: 50 miles @ $500,000 with 15 @ and additional $350,000/mile for the right-of-way.
Total: $30,250,000.00Slide4
Part a)
For the least possible cost:
Disregard the $2,800,000 and go around the mountain.
The function C(x) represents a distance (35-x) from the refinery, laterally, on the BML land (assuming that we don’t go through the mountain), and a distance (
sqrt
(15^2 +x^2)) representing the number of miles across the private land.
C(x) = 500,000(35-x) + 850,000(
sqrt
(15^2 + x^2))
I utilized differentiation to figure out where my costs would “peak” or “valley”
Total Cost:$27,810,795,31
I have included an excel spreadsheet for you to go over my numbers for verification.Slide5Slide6
Conclusion
I feel, that even with, the extra overall cost of building our pipeline through the private lands, that would be our best bet. The cost is overly less expensive than: A, If something goes wrong with the environmental survey. B, it does NOT incur a 4 month downtime for the environmental survey, which gives us 4 month’s revenue to recuperate the $10,795.31 difference sooner. C, while repair and maintenance could be, potentially, high cost, whilst beneath a mountain. For these reasons, I recommend that we spend the extra to build and maintain our pipeline with our ‘lowest cost’ (B ii) estimate.