AAPL Directors Report 3-16

AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN

QUARTERLY BOARD of DIRECTORS MEETING, Tucson, AZ

March 20, 2016

The AAPL Quarterly Board Meeting was held Sunday, March 20, 2016 at The JW Marriot Starr Pass in Tucson, Arizona. 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 and introduction/seating of a new Director and Committee Chairpersons/Assistants, the minutes from the last board meeting on December 6, 2015 were adopted by acclamation. 

Treasurer’s Report: Jay Beavers, III, CPL, Treasurer, provided a report on AAPL and its affiliates ending December 31, 2014 as follows:

As compared to December 31, 2014, AAPL, Inc.’s total assets have decreased from $34,212,385 to $30,730,618 a change of $3,481,767 or 10.2% due in large part to paying $1,338,651 on the building loan, a transfer of $1,150,000 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 December 31, 2014 have decreased 32.4% from $3,183,454 to $2,151,255. 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 20.4% compared to December 31, 2014 from $3,354,503 to $4,039,809. The net ordinary income (loss) for the 12 months changed from $(171,050) to $(1,888,554). The increase in expenses is in large measure due to the inclusion of depreciation as an expense. Other expenses include credit card processes fees, contract labor, directs meetings, and building repair and maintenance.
Investments as of December 31, 2015 are $24,008,506 a decrease of $3,863,965 or 13.9% 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 $1,150,000 to the operating account, and realized and unrealized gains.

Education Foundation, Inc.’s balance Sheet reflects $3,401,835 which is a decrease of $339,986 or 9% as compared to the same period last year. The Statement of Investment Accounts reflects $2,347,052 total monies invested which is a decrease of $144,472 or 5.8% as compared to the same period last year.
Landman Scholarship Trust’s balance Sheet reflects $6,083,932 which is a decrease of $160,889 or 2.6% as compared to the same period last year. The Statement of Investment Accounts reflects $6,023,227 total monies invested which is an increase of $115,138 or 1.9% as compared to the same period last year.

Staff Report: Melanie Bell, Executive Vice-President, reports:

There are currently four vacancies for the following positions: Personify Database Administrator, Electronic Media Administrator, Business Development Manager, and Publications/Marketing Manager. Market conditions have been and will continue to be carefully assessed prior to increasing headcount.

The sale of the Fossil Creek building finalized, January 12, 2016 for $1,220,547 ($1,102,113 net at closing)
NAPE lookback – In 2015, $6.88MM in net proceeds was were distributed to the NAPE partners in 2016; $4.52MM was AAPL’s share of the net proceeds/management fees.

NAPE Report:

NAPE Summit (February 10-12, 2016) – Attendance was expected to be down ~25% from 2015 due to market conditions; however, attendance was only down 20%. Overall attendance was 11,300. Rudy Giuliani was the keynote speaker for the Charities Luncheon, and Richard Fisher was the keynote speaker for the Decision Maker’s Breakfast. APPL presented checks to three charities totally $225,000.
Summer NAPE (August 10-11, 2016) – Budget scenarios completed considering a 25% decrease and a 40% decrease in exhibitors, attendees, and sponsorship revenue.
NAPE Denver (October 12-13, 2016) – Budget scenarios completed considering a 25% decrease and a 40% decrease in exhibitors, attendees, and sponsorship revenue. Registration open March 1, 2016.

Business Items:

A motion to terminate Four Corners Association of Professional Landmen for failure to file taxes and other matters was made, and the vote was passed without opposition. Subsequently, a motion to create a replacement association, the San Juan Basin Landman’s Association, was made. Bill Hackett attested to the fact that the new association bylaws had been drafted, leadership in place, and all required paperwork had been filed. The AAPL Board of Directors adopted the motion and approved the San Juan Basin Landman’s Association as a new association with Bill Hackett being named its AAPL Director.
New appointees to the Educational Foundation Committee were nominated, Roger Soape and Jay Beavers. These nominees were approved by an affirmative vote of the board. Each will serve a three year term.
Don Key presented the 2016/2017 slate of officers:

President – Pam Feist
First Vice President – David Miller
Second Vice President – Jeff Niemeyer
Third Vice President – Trinidad Hernandez
Secretary – Russel Shaw
Treasurer – Jim Bourbeau

A motion to approve the slate of officers was made, the vote called for and approved by acclamation.

The AAPL is changing its reimbursement policy to “pay for play” for AAPL Directors. Previously, a sum of money was provided to each association to aid in expenses associated with travel to the board meetings; however, not all associations were utilizing these funds as intended. Rather than provide a lump sum in advance of the meetings, AAPL will reimburse attendees directly provided they attend the board meeting and stay at the host hotel. Additionally, a motion to extend the financial assistance program to Committees Chairs, Task Force Leaders, Executive Committee Members, and Officers was made. The motion passed with all but one voting member in favor.
A vote to make Marietta College in Ohio the twelfth AAPL accredited Energy Management Program in the nation passed. 
Bhavin Naik, Awards Committee Chairman, reviewed the awards process and disclosed the 2015 winners. OCAPL President, Nick Watkins, has already communicated the good news, so I won’t rehash how awesome OCAPL is in this report. Award winners will be recognized at the 2016 AAPL Annual Meeting in Orlando. 
Incoming AAPL President, Pam Feist, proposed the 2016/2017 budget to the board with a new goal of operating within a balanced budget which requires the reduction of operating expenses. With some changes, the 2016/2017 budget was adopted by acclamation. A few items noted:

Stressed the need for education program to be self-sufficient
Announced the elimination of the Landman 2 magazine
Announced the AAPL Annual Report will no longer be printed but will be available electronically
Discussed the high costs of the AAPL Annual Meeting and proposed cost savings measures including changing the location of the 2017 Annual Meeting in Seattle. A separate vote was held after the board meeting that addressed changing the location of the 2017 from Seattle to Fort Worth. This proposal was voted down by the Board.

A motion to retire the debt of the new building and close the associated line of credit was made and adopted by acclamation.

Other Noteworthy News/Reports:

AAPL has been involved in litigation related to HR matters; all such litigation is now 100% complete. Other than attorney’s fees, all settlement costs were covered by insurance.
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. 

Respectfully,

Lindsey N. Miles

AAPL Director