AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN
QUARTERLY BOARD of DIRECTORS MEETING, ORLANDO, FL
June 15, 2016
The AAPL Quarterly Board Meeting was held on Wednesday, June 15, 2016 at The Hyatt Regency in Orland, Florida. Marc Strahn, AAPL President, called the meeting to Order. The Invocation was given by Roger Soape 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 20, 2016 were adopted by acclamation.
Treasurer’s Report: Jay Beavers, III, CPL, Treasurer, provided a report on AAPL and its affiliates ending March 31, 2016 as follows:
As compared to March 31, 2015, AAPL, Inc.’s total assets have decreased from $33,314,620 to $29,078,331 a change of $4,236,288 or 12.7% due in large part to paying $1,338,651 on the building loan, a transfer of $1,730,000 to the operating account to meet day-to-day expenses and a decline in the market value of investments.
Revenues (exclusive of investment revenue) compared to March 31, 2015 have decreased 24.5% from $3,958,661 to $2,988,349. The decrease in revenue is due in part to decreased revenue in education revenue as a result of the discount program on tuition and books which ended on December 31, 2015, elimination of recertification fees, decrease in NAPE distributions and management fee, timing of revenue recognition, and a reduction in the earned dues income.
Expenses have increased 10.3% compared to March 31, 2015 from $5,631,067 to $6,212,805. The net ordinary income (loss) for the 12 months changed from $(1,672,415) to $(3,224,456). The increase in expenses is in large measure due to the inclusion of depreciation as an expense. Other unbudgeted or under budgeted expenses include credit card processes fees, contract labor, legal settlements, publications printing, and building repair and maintenance.
Investments as of March 31, 2016 are $22,567,781 a decrease of $3,824,896 or 14.5% as compared to the same period last year. The decrease has been the result of paying a portion of the line of credit used to purchase the new building, a transfer of $1,730,000 to the operating account, and realized and unrealized gains.
Education Foundation, Inc.’s balance sheet reflects $3,285,571 which is a decrease of $253,135 or 7.2% as compared to the same period last year. The Statement of Investment Accounts reflects $2,380,075 total monies invested which is a decrease of $133,543 or 5.3% as compared to the same period last year.
Landman Scholarship Trust’s balance sheet reflects $6,050,666 which is a decrease of $255,500 or 4.1% as compared to the same period last year. The Statement of Investment Accounts reflects $5,995,265 total monies invested which is a decrease of $256,775 or 4.1% as compared to the same period last year.
Staff Report: Melanie Bell, Executive Vice-President, reports:
Efforts to reduce AAPL expenses are ongoing; reduction in even the basics (utilities, office supplies, third party services, etc.) are being closely examined. This process revealed a drastic increase in fees associated with the use of credit cards – fees totaling approximately $125,000 per year. AAPL is considering implementing credit card usage fees to help offset this expense.
Efforts to “do more for less” are being applied to membership benefits as well. AAPL is offsetting budget cuts to onsite educational opportunities by adding more electronic educational opportunities such as webinars.
AAPL membership is down 7% year over year, but member certifications are up 17% year over year. As of May 10, 2016, the AAPL had 18,730 members in total of which 5,954 members carry a designation of RL, RPL, CPL, or Retired CPL.
Members submitting their renewal applications after June 30, 2016 will not be included in the online directory only.
The building loan has been retired, and the associated line of credit closed.
NAPE Summit: $5.125MM in net proceeds were distributed to NAPE partners; AAPL’s share of the proceeds and management fee totaled $3.102MM
Summer NAPE (August 10-11, 2016) – Current sponsorship and exhibitors are down compared to 2015 actuals.
NAPE Denver (October 12-13, 2016) – Sponsorship and exhibitors are pacing nicely with 2015. Registration opened March 1, 2016.
Efforts to reduce NAPE expenses will yield a savings of over $2MM in 2016 ($1.3MM of savings derived from NAPE Summit alone).
Plans to expand the International and OCS components of NAPE are being formulated.
A motion to approve a $45,000 increase the 2016/2016 capital improvement line item was made. The funds will be used to repair the out of service and out of code elevator in the AAPL headquarters. The motioned passed unopposed.
Pam Feist, incoming APPL President, presented the AAPL master planning document to the board. The planning document was created by the Strategic Planning Committee and was made available to the directors prior to the meeting for review. A motion from the Executive Committee to approve the document was made and was passed by acclamation. For further information about this document, its content or purpose, please feel free to contact me directly.
A new AAPL policy manual containing several policy updates will be made available to the directors on July 28, 2016 at the directors’ orientation in Fort Worth.
The Landman’s Scholarship Trust awarded 37 scholarships in the 2016/2017 academic cycle totaling $134,000.
There are 7 colleges with AAPL certified energy management programs that will be up for reaccreditation in 2017. The Accreditation Committee will implement some policy changes in 2017. Among these changes, an accreditation application fee (the amount to be determined) will be imposed on schools applying for accreditation and reaccreditation.
The Certification Committee proposed changes to the certification application process. Currently, applicants for the RL, RPL, and CPL can sit for an exam prior to the completion and approval of the application process. Effective January 1, 2017, applicants must complete the application process (including receipt of sponsorship forms and approval of the application by the Certification Committee) prior taking a certification exam. A motion to approve the proposal was made and passed with two voting parties in opposition.
The Certification Committee proposed the “experienced CPL exception”. The proposed exception would, in short, provide an exception for those experienced, non-degreed landmen to earn the CPL designation without removing the requirement for a college degree for general CPL eligibility. In order to qualify for such exception, applicants would have to have a minimum of 15 years of qualifying land work and have held the RPL designation for 3 years.
A motion to approve the proposal was made. After much discussion, a roll call vote was taken. The motion failed as the required 2/3 majority was not achieved.
Other Noteworthy News/Reports:
There are over 1,000 credit hours (125 seminars) available online through AAPL’s website. Effective April 4, 2016, these online seminars will be available to AAPL members for $10/credit hour, reduced from $15/credit hour. This reduction in price is part of a broader effort to make credits more convenient and economical to obtain.
The next Board of Director’s meeting will be on September 11, 2016 at the Snow King Resort and Grandview Lodge in Jackson, Wyoming.
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 me.
Lindsey N. Miles