AAPL Directors Report 3-17

AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN

QUARTERLY BOARD of DIRECTORS MEETING, Santa Barbara, California

March 12, 2017

The AAPL Quarterly Board Meeting was held on Sunday, March 12, 2017 at The Fess Parker in Santa Barbara, California. 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 December 11, 2016 were adopted by acclamation. 

Treasurer’s Report: Jim Bourbeau, Treasurer, provided a report on AAPL and its affiliates for the period ending December 31, 2016 as follows:

As compared to December 31, 2015, AAPL, Inc.’s total assets have decreased from $30,736,492 to $30,069,402 - a change of $667,090 or 2.17%. Total liabilities as compared to December 31, 2015 have decreased from $2,926,302 to $1,448,113 – a change of $1,478,189 or 50.51%. 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 December 31, 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 22.66% compared to December 31, 2015 from $4,033,918 to $3,160,165. 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 (64.64% reduction from $507,155 to $179,315), ceasing the publication of Landman 2 (25.17% reduction from $292,223 to $218,665) and a decrease in general and administrative expenses (22.23% reduction from $942,127 to $732,684). 
Investments as of December 31, 2016 are $23,877,276, a decrease of $131,230 or .55% as compared to the same period last year. The decrease has been the transfers of cash to the AAPL operations account totaling $2,430,000 since December 31, 2015; however, this has been partially offset by realized and unrealized gains in the AAPL investment account totaling $2,298,770.

As of December 31, 2016, the Education Foundation, Inc.’s balance sheet reflects $3,517,670 which is an increase of $1,105,229 or 45.82% as compared to the same period last year. The Statement of Investment Accounts reflects $3,505,875 total monies invested which is an increase of $1,158,823 or 49.37% as compared to the same period last year.
As of December 31, 2016, the Landman Scholarship Trust’s balance sheet reflects $6,528,155 which is an increase of $444,223 or 7.30% as compared to the same period last year. The Statement of Investment Accounts reflects $6,441,559 total monies invested which is an increase of $418,332 or 6.95% as compared to the same period last year.

AAPL General Report:

AAPL membership has exceeded the 2016-2017 budget by over 600 members! As of February 20, 2017, AAPL had 15,576 members (13,354 Active members, 1,469 Associate members and 753 “other” members). In order to be included in the 2017-2018 director, member renewals must be received by June 30, 2017.
The AAPL Officer Elections will be handled through Intelliscan which is an online ballot system. Usage of this program will save AAPL ~$8,000 as compared to the paper ballot method as previously utilized.
The AAPL Membership Survey closed on March 1, 2017, and more than 2,600 members completed the survey. The survey was conducted using AAPL online tools which resulted in a savings of more than $50,000 in consultant fees incurred in prior surveys.
The upcoming Annual Meeting registration process will be handled by AAPL staff and AAPL’s Personify system versus outsourcing this process to a 3rd party provider which equates to ~$30,000 in savings when compared to prior years.
The AAPL’s website is in need of refresh. Our website currently operates on a very old platform which limits our ability to make the site more modern and user friendly. Although no formal capital allocation request was made, it should be anticipated in the coming months.
The AAPL Annual Meeting in Seattle is June 21-24, 2017. The staff and the Annual Meeting Committee have both done a fantastic job putting together this event. Register today!

NAPE Report:

The books were closed on Summer NAPE 2016 in November. AAPL received $375,562 in distributions and $141,351 in management fees. Due to lower attendance, the distributions and management fees are less than what was received in 2015. 
Unlike Summer NAPE, NAPE Summit 2017 was very well attended – attendance exceeded budget expectations by 24%. Distributions will be paid to AAPL in May. The NAPE Charities Luncheon was also a huge success. General Colin Powell was the Keynote Speaker and the event raised over $180,000 for donation to some very deserving veterans
Summer NAPE 2017 is August 15-17. At the event, NAPE will debut the Hot Play Happy Hour concept where you can meet and mingle with E&P Professionals working particular geographic areas. Some of the featured hot plays are as follows: Bakken, Niobrara, Scoop/Stack, Barnett, Eagle Ford, Marcellus/Uitca, Haynesville/Bossier, and more!
Effective April 1, 2017, 7 AAPL employees dedicated to NAPE will be NAPE employees. NAPE will rent office space in the AAPL building for each of these employees. This change was instituted in an effort to offset AAPL’s NAPE related expenses and will result in a savings of ~$525,000 annually.   

Business Items:

Other Noteworthy News/Reports:

Roger, on behalf of the Nominating Subcommittee consisting of representatives from each of the AAPL Regions I through VIII, presented the Executive Committee nominees for the 2017-2018 term:

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 AAPL Annual Meeting Committee has been hard at work scouting locations for the 2019 Annual Meeting. They narrowed the potential locations down to Boston, MA and Pittsburg, PA. The board voted and approved the location of the 2019 Annual Meeting to be in Pittsburg on June 26-29, 2019. 
The Board approved an increase in annual membership dues from $100 to $125 dollars effective July 1, 2017 with an automatic escalation to $150 in 2020. Multi-year membership fees will increase proportionately.
The Board approved reinstating the $100 RPL/CPL recertification fee.
In addition to other budgetary items, the Board approved the addition of $15,000 to the current 2016/2017 budget to be allocated to and used for Field Landman Seminars.
The Certification Committee is working to streamline the RPL/CPL retest policy and will be seeking qualified proctors, supported by their respective local association, to proctor exam retakes in their local area. If you’re interested in being a designated proctor, please let me know.   
If you’re having difficulty with Contract Room or would just like to be a more efficient user, please reach out to Christopher Halaszynzki, AAPL Director of Education. Contract Center is a powerful tool, and the AAPL is committed to ensuring its users get the most out of it.
The next Board of Director’s meeting will be held during the Annual Meeting on June 21, 2017 at the Sheraton Seattle Hotel in Seattle, WA.

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. 

Respectfully,

Lindsey N. Miles

AAPL Director