AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN
QUARTERLY BOARD of DIRECTORS MEETING, Williamsburg, VA
December 11, 2016
The AAPL Quarterly Board Meeting was held on Sunday, December 11, 2016 at The Kingsmill Resort in Williamsburg, Virginia. 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 September 11, 2016 were adopted by acclamation.
Treasurer’s Report: Jim Bourbeau, Treasurer, provided a report on AAPL and its affiliates for the period ending September 30, 2016 as follows:
As compared to September 30, 2015, AAPL, Inc.’s total assets have decreased from $30,713,741 to $30,411,521 - a change of $302,220 or .98%. Total liabilities as compared to September 30, 2015 have decreased from $3,067,022 to $1,806,390 – a change of $1,260,632 or 41.10%. This is primarily due to the repayment of the $1,000,000 building note payable as well as a $244,401 decrease in unearned long term 3 and 5 year membership dues.
Revenues (exclusive of investment revenue) compared to September 30, 2015 have decreased 7.59% from $598,033 to $552,651. The decrease in revenue is due to a reduction publication revenue of 58.54% from $82,900 to $34,371. This reduction is due to eliminating Landman 2 and attributable timing of issues.
Expenses have decreased 22.19% compared to September 30, 2015 from $1,819,050 to $1,415,395. The decrease in expenses in large measure is due to the reduction of costs relating to publications - eliminating Landman 2 (69.68% reduction from $134,484 to $40,744), educational seminars (40.43% reduction from $175,868 to $104,762), board of directors meetings (68.77% reduction from $96,611 to $30,168) and general and administrative expenses (29.62% reduction from $478,443 to $336,742).
Investments as of September 30, 2016 are $23,972,460, a decrease of $255,990 or 1.06% as compared to the same period last year. The decrease has been the transfers of cash totaling $1,000,000 to the AAPL operations account; however, this has been partially offset by realized and unrealized gains in the AAPL investment account totaling $776,613.
As of September 30, 2016, the Education Foundation, Inc.’s balance sheet reflects $3,414,398 which is an increase of $57,235 or 1.70% as compared to the same period last year. The Statement of Investment Accounts reflects $3,398,864 total monies invested which is an increase of $1,133,491 or 50% as compared to the same period last year.
As of September 30, 2016, the Landman Scholarship Trust’s balance sheet reflects $6,380,555 which is an increase of $476,066 or 8.06% as compared to the same period last year. The Statement of Investment Accounts reflects $6,253,753 total monies invested which is an increase of $440,173 or 7.57% as compared to the same period last year.
As mentioned in my previous report, the AAPL is striving towards having a balanced budget. The AAPL and the AAPL Board of Directors has implemented certain reductions already and is looking for more ways to become more cost efficient without negatively impacting member services. Please let us know how we’re doing, and your suggestions for improvement are also most welcome.
AAPL General Report:
Kaci Cross, former Certification Coordinator for AAPL, resigned in September. For now, that role has been absorbed by AAPL. Le’Ann Callihan is celebrating her 25th anniversary with AAPL. Le’Ann is a huge part of what makes AAPL work, and she is a pleasure to work with. Congratulations Le’Ann!!!
Since the last board meeting, there has been a 10% increase in membership. As of November 14, 2016, total membership was 14,691. 44% of eligible members hold designations (RL/RPL/CPL). Year over year, membership is down about 22%. If you are not an AAPL member, I encourage you to join. At the end of this report, I’ve included a flyer that describes some of the benefits of being a member of AAPL.
AAPL’s new Contract Center was launched in November 2016 and new Forms on a Disk sales have ceased. Access to all AAPL forms will be provided exclusively though subscription to AAPL’s Contract Center. Contract Center is a huge upgrade from Forms on a Disk, and I think you’ll enjoy the functionality and efficiencies.
Be on the look-out for the AAPL 2017 compensation survey. The survey will be distributed via email. In addition to compensation questions, the survey will include some questions about AAPL. Please take a few minutes to complete the survey as it will provide some excellent insights into compensation trends across the country and member satisfaction.
AAPL President, Pam Feist, is the featured speaker at the OCAPL’s Monday Night Meeting on February 6, 2017. Please plan to attend. Pam will provide OCAPL members with information about the AAPL, its goals, challenges and successes.
NAPE Charities Fund is currently a private foundation; however, the board of directors authorized $9,000 to change the fund to a public fund, NAPE Expo Charities Fund. This private to public change in status will allow greater flexibility as to the donations this fund is able to receive.
Registration for NAPE Summit (February 15-17, 2017) is open. Attendees, exhibitors and sponsorships are trending with AAPL’s projections; it should be a fantastic, well attended event. General Colin Powell will be the keynote speaker for the NAPE Charities Luncheon, and Barry Sommers, CEO of JP Morgan Chase Wealth Management, will keynote the Business Conference Lunch.
In anticipation of a lower turnout, Summer NAPE expenses were proactively reduced by $566,558 or 42%, and the attendee budget was adjusted to 2,600; however, attendance was stronger than expected with 2,780 in attendance and 184 exhibitors.
Although the financials are not yet final, with only 913 attendees and 75 exhibitors, NAPE Denver continues to struggle with self-sufficiency. After careful consideration, it was decided to suspend all regional NAPE events until the market makes a turnaround. NAPE will focus on its core events, NAPE Summit and Summer NAPE.
Overall, NAPE income is down 33% as compared to last year.
The Accreditation Committee found that the self-funded budget of $500 per application, plus donations, will not provide enough funds to complete the on-site evaluations; therefore, the board of directors approved moving $10,000 from the investment account to the operating account to cover the projected budget deficit for the current fiscal year. Additionally, the board approved a motion to raise the accreditation fee to $2,500 per applicant.
The IT Committee has been working with Contractor Room to enable “personalization” of AAPL forms. Contractor Room and AAPL will work with companies as needed and on an individual basis to personalize select forms to more closely resemble that company’s preferred form. The fee for this services has not yet been established.
The Educational Foundation and the Landman Scholarship Trust is looking to raise funds. If you’re interested in incorporating the Educational Foundation or Landman Scholarship Trust into your estate plan, please contact Trinidad Hernandez.
The AAPL Field Landman Committee expressed a need for additional funds to continue its program for the current fiscal year; therefore, the board of directors approved moving $12,500 from the investment account to the operating account to cover the projected budget deficit.
The 2012 Oil and Gas Law Review is being updated. The committee hopes to have the second edition available prior to the Annual Meeting in June. Speaking of Annual Meeting, if you have not signed up, do! Rooms in the host hotel are limited and the AAPL Annual Meeting and Education Committees have put together a great event.
Other Noteworthy News/Reports:
AAPL is seeking nominations for its 2016/2017 awards recognizing members and local associations achieving the highest standards of excellence in the land profession. All nominations must be submitted by January 13, 2017.
If you’re interested in volunteering to speak at an AAPL sponsored workshop and/or seminar, please let me know. The OCAPL would certainly be proud to “supply” the AAPL with some top notch presenters.
There are over 1,000 credit hours (125 seminars) available to members online through AAPL’s website.
The next Board of Director’s meeting will be on March 12, 2017 at The Fess Parker in Santa Barbara, California.
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. Additionally, if you have any questions, comments, concerns, or ideas regarding the AAPL and/or its services, I certainly welcome your feedback.
Lindsey N. Miles