AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN
QUARTERLY BOARD of DIRECTORS MEETING, Seattle, Washington
June 21, 2017
The AAPL Quarterly Board Meeting was held on Wednesday June 21, 2017 at The Sheraton Seattle Hotel in Seattle, Washington. Pamela Feist, AAPL President, called the meeting to Order. The Invocation was given by Marc Strahn and followed by the introduction of guests and roll call of the Executive Committee, Directors and Committee Chairs. Upon adoption of the Agenda, the minutes from the last board meeting on March 12, 2017 were adopted by acclamation.
Treasurer’s Report: Jim Bourbeau, Treasurer, provided a report on AAPL and its affiliates for the period ending March 31, 2017 as follows:
As compared to March 31, 2016, AAPL, Inc.’s total assets have increased from $29,078,330 to $30,074,690 - a change of $996,360 or 3.4%. Total liabilities as compared to March 31, 2016 have decreased from $2,369,247 to $1,426,826 – a change of $942,421 or 39.8%. This is primarily due to the repayment of the $1,000,000 building note.
Revenues (exclusive of investment revenue) compared to March 31, 2016 have decreased 18.4% from $2,988,350 to $2,439,581. The decrease in revenue is due to a reduction in NAPE distributions and management fees (34.8% reduction), a reduction in educational seminar fees (24.2% reduction), and a reduction in member dues (7.7% reduction).
Expenses have decreased 21% compared to March 31, 2016 from $6,212,805 to $4,905,434. The decrease in expenses in large measure is due to the reduction of food and beverage expenses, speaker expenses and fees, and transition to virtual education seminars (60.9% reduction), ceasing the publication of Landman 2 (43.7% reduction) and a decrease in general and administrative expenses largely being contract labor and legal settlements (35.2%).
Investments as of March 31, 2017 are $23,912,303, an increase of $1,344,522 or 5.6% as compared to the same period last year. The increase is the result of realized and unrealized gains in the AAPL investment account totaling $3,094,522 and transfers of cash ($1,750,000) to the AAPL operating account since March 31, 2016.
As of March 31, 2017, the Education Foundation, Inc.’s balance sheet reflects $6,641,591 which is an increase of $356,022 or 10.84% as compared to the same period last year. The Statement of Investment Accounts reflects $3,638,586 total monies invested which is an increase of $1,258,511 or 52.867% as compared to the same period last year.
As of March 31, 2017, the Landman Scholarship Trust’s balance sheet reflects $6,711,731 which is an increase of $636,066 or 10.47% as compared to the same period last year. The Statement of Investment Accounts reflects $6,679,749 total monies invested which is an increase of $684,484 or 11.42% as compared to the same period last year.
AAPL General Report:
The Membership Survey closed March 1, 2017, and the compensation portion of the survey will be available in the September/October edition of Landman Magazine. Although participation was up as compared to prior surveys, as compared to our total membership base, participation could certainly be improved. More data yields more accurate, better results, so be sure to participate in future surveys.
Membership has exceeded the budget! Total membership as of May 29, 2017 was 16,346 (13,872 Active members, 1,607 Associate members and 867 “other” members; 5,645 members carry an AAPL certification designation). The deadline to renew your membership and be included in the printed directory was June 30, 2017.
As mentioned in my previous report, AAPL continues to see efficiencies and costs savings associated with improved technology and in-house capabilities. For example, the AAPL implemented online balloting capability for a savings of ~$8,000. AAPL has also begun testing online certification applications. This processes is expected to roll-out in October 2017.
The Seattle Annual Meeting has exceeded budgeted attendance and sponsorships. After a somewhat disappointing turnout in Orlando in 2016, the Seattle meeting has far exceeded all expectations. Congratulations to the AAPL staff, Education Committee and the Annual Meeting Committee for putting on a fantastic yet budget-minded event! Some highlights include:
15 continuing education credits including:
Includes 2 ethics credits
A panel presentation showcasing the much anticipated 2nd edition of the Comparative Oil and Gas Law Publication.
Bill Thomas, Chairman of the Board and Chief Executive Office of EOG Resources, Inc., is a Keynote Speaker as well as Mike Grimm, Chairman of the Board and co-founder of RSP Permian, LLC.
Renegotiated the commission split per the NAPE Wyndham Jade contract which will account for ~$300,000-400,000 in income for NAPE Expo each year.
NAPE Summit 2017 exceeded the budget for revenue by $473,929.63 which was due in part to higher attendance and lower expenses as compared to NAPE Summit 2016. Looking ahead to NAPE Summit 2018 – Tom Brokaw will be the Keynote Speaker at the NAPE Charities Luncheon; implementation of a Job/Career Fair; expanded and improved Prospect Theatres for regional prospects.
NAPE is launching the much anticipated Hot Play Happy Hours at Summer NAPE as well as a new Lease and Mineral Exchange Program. Additionally, you won’t want to miss your chance to win an ATV giveaway on the expo floor!
The 2017-2018 Executive Committee Officer election is now complete. For the first time, the AAPL utilized an electronic balloting system where 2,357 Active Members casts their votes. The results of the election were presented to the Board by Russell Shaw and are as follows:
President - David Miller, CPL (Mississippi, Region I)
1st Vice President – Mike Curry, CPL (Permian Basin, Region V)
2nd Vice President – Lindsey Miles, CPL (Oklahoma City, Region VI)
3rd Vice President – Nick Hess, CPL (Wichita, Region VI)
Secretary – Hamel Reinmiller, CPL (Tulsa, Region VI)
Treasurer – Glen Mauldin, CPL (Houston, Region IV)
Immediate Past President – Pamela Feist, CPL (Midland, Region VI)
The Certification Committee presented two proposals for review and approval by the Board. The first proposal sought to establish the RL designation as a permanent designation requiring a proctored examination and 5 continuing education credits to maintain. In an effort to improve quality control measures, the second proposal sought to formalize the process for establishing a regionally approved list of re-take certification exam proctors. Proctors are to be nominated by their respective local associations and must be Certified Professional Landmen. Both proposals were approved by the Board.
Several AAPL policy manual updates were voted on and approved by the Board affecting the Conflict of Interest Policy, Mission Statement & Policy of Tax Issues Committee, Landman Scholarship Trust, Amicus Brief, and Council of Past Presidents (COPP). The complete policy manual can be found at http://www.landman.org/about-aapl/policies.
Updates to the 1-3-5 year plans were also reviewed and approved by the Board. If you haven’t had the opportunity to review these plans, I encourage you to do so. They provide great insights into how AAPL is working for its members. The plans can be found on AAPL Connect.
Other Noteworthy News/Reports:
COPAS will soon be available on Contract Center!
The Education Foundation has kicked-off their fundraising efforts and is currently seeking donations. Please consider making a donation or including the AAPL Education Foundation in your estate plans.
FEEDBACK NEEDED! The Education Committee has been working tirelessly to improve the scope and quality of the educational services provided. Please complete the feedback forms associated with AAPL seminars you participate in. Knowledge is power; help the AAPL understand how to improve its current educational offerings and where to focus growth.
Please share your industry knowledge in print! The Publications Committee is always looking for new articles and willing authors for publication in the Landman Magazine.
The next Board of Director’s meeting will be September 10, 2017 at the Nemacolin Woodlands Resort in Farmington, PA where Nick Watkins will be seated as OCAPL’s new AAPL Director for the 2017-2019 term.
There are many people that serve to advance our profession through their involvement with the AAPL and/or their respective local association. If you are interested in serving on an AAPL or OCAPL committee or otherwise becoming more involved, please feel free to contact Nick Watkins, your new AAPL Director. Additionally, if you have any questions, comments, concerns, or ideas regarding the AAPL and/or its services, Nick and I certainly welcome your feedback.
Lindsey N. Miles