This turns out to be a very hard problem, and unless $P=NP$ there is no algorithm which runs in polynomial time as a function of the number of pipes and cuts. In fact, no such algorithm exists even if you only have $2$ pipes! The reason is because we can reduce the subset sum problem, a known NP-complete problem, to a special case of this with just $2$ pipes:
Suppose you have a set $c_1,\ldots,c_n$ of positive integers, with total sum $C$, and want to know whether some subset of them sums to $S$. If you have two pipes, one of length $S$ and the other of length $C+1$, then you can make cuts $c_1,\ldots,c_n$ with a leftover value of at least $(S+1)^{1.12}$ iff you can use all of the pipe of length $S$, that is iff there is some subset of $c_1,\ldots,c_n$ which sums to $S$.
There's a bit of hope left, as subset sum is only weakly NP-complete, so there are efficient algorithms when the size of the integers (i.e. the cuts) are small, which translate to efficient approximation algorithms regardless of size. However, this problem is a vast generalization of subset sum, so may be strongly NP-complete. I'll give the question some more thought.
Edit: This hope is also dashed, as the 3-partition problem, a strongly NP-complete problem, can be reduced to this:
Suppose you have a set of $3m$ positive integers $c_1,\ldots,c_{3m}$ which sum to $Cm$. If you have $m$ pipes of length $C$ and one of length $Cm$, then you can make cuts $c_1,\ldots,c_{3m}$ with leftover value of at least $(Cm)^{1.12}$ iff you can use all of the $m$ pipes of length $C$, i.e. iff you can partition $c_1,\ldots,c_{3m}$ in $m$ $3$-tuples which each sum to $C$.