AAPL Directors Report 9-15

AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN

QUARTERLY BOARD of DIRECTORS MEETING, Park City, UT.

September 13, 2015

The AAPL Quarterly Board Meeting was held Sunday, September 13, 2015 at The Montage – Deer Valley in Park City, UT. Marc Strahn, AAPL President, called the meeting to Order.  The Invocation was given followed by the Introduction and Roll Call of the Executive Committee, Directors and Committee Chairs. The new AAPL EVP, Melanie Bell, was also introduced. Upon adoption of the Agenda and introduction/seating of the new and interim Directors, the Minutes from the last Board Meeting on June 17, 2015 were adopted by acclamation. 

President’s Report:  Marc Strahn presided over the meeting and charged those in attendance with keeping AAPL informed of activities/issues within each of the respective regions, and he reminded the Directors of the importance of reporting the activities/issues discussed at the board meeting to their respective local associations.

The former AAPL headquarters on Fossil Creek is still on the market. The building was under contract, but the contract fell through as the potential purchaser’s intended use was denied by the governing HOA. The AAPL has since received two new offers on property – one of which is in excess of the previous contract price. An LOI is in place and the PSA is currently being negotiated.
The AAPL will host an open house at its new headquarters at 800 Fournier Street, Ft. Worth, TX 76102 on November 11, 2015 from 3:30-6:00pm. The ribbon cutting ceremony with the Fort Worth Chamber of Commerce will take place at 4:30pm. All AAPL members are welcome to attend the open house.
The AAPL is on the way to being free of the debt incurred by the purchase of the new office building. The current loan has been paid down to $1,000,000, and the target payoff date is June 2016!

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

The AAPL has been working to fill staff vacancies. There are currently four remaining vacancies for the following positions: Publications/Marketing Manager, Business Development Assistant, Marketing/PR Assistant, and Publications Assistant. Market conditions have been and will continue to be carefully assessed prior to increasing headcount.
On August 17, 2015, NAPE Partners were recognized for a $100,000 donation to the IPAA Education Center supporting oil and gas industry education for high school students.
The AAPL hosted a new director and committee chairman orientation in Fort Worth on August 13, 2015. There were 38 in attendance, myself included. This was a very informative session in which the directors and committee chairs were educated on the AAPL Code of Conduct, membership programs, association entities, and the APPL organization structure including introductions of the AAPL staff.
Annual audits of AAPL financial records began and will continue through early September.

Treasurer’s Report: Jay Beavers, III, CPL, Treasurer, provided a report on AAPL and its affiliates ending June 30, 2015 as follows:

As compared to June 30, 2014, AAPL, Inc.’s total assets have decreased from $36,094,946 to $35,536,290 a change of $558,667 or 1.6%.

Revenues (exclusive of investment revenue) compared to June 30, 2014 have decreased 7.31% from $9,565,088 to $8,890,662. The decrease in revenue is due in part to decreased revenue from NAPE distributions and management fees and a decrease in education revenue as a result of the discount program on tuition and books.
Expenses have decreased 26.6% compared to June 30, 2014 from $12,418,015 to $9,115,934. The decrease in expenses is in large measure due to the $4,100,000 contribution from AAPL to the Landman Scholarship Trust in the 2013-2014 fiscal year. Other expenses that increased included occupancy and moving expenses, software licenses, contract labor, interest, computer/internet and legal expenses. 
Investments as of June 30, 2015 are $28,146,271 a decrease of $173,430 or 6% as compared to the same period last year. The decrease has been the result of realized and unrealized gains and losses.

Education Foundation, Inc.’s balance Sheet reflects $3,534,514 which is a decrease of $438,594 or 11% as compared to the same period last year. The Statement of Investment Accounts reflects $2,526,950 total monies invested which is a decrease of $34,951 or 1.4% as compared to the same period last year.
Landman Scholarship Trust’s balance Sheet reflects $6,437,678 which is an increase of $15,001 or .23% as compared to the same period last year. The Statement of Investment Accounts reflects $6,293,474 total monies invested which is an increase of $4,928 or .08% as compared to the same period last year.

NAPE Report: Summer NAPE took place on August 19-20, 2015 and featured a new format – the show opened on Wednesday afternoon as opposed to Thursday. Additionally, the new Summer NAPE Prospect Theatre Presentations kicked-off and were very well attended. There is certainly room for growth and sponsorships in that area in the future. Overall, Summer NAPE attendance was down from 5,480 in 2014 to 4,400 in 2015.

NAPE Summit 2016 – Rudy Giuliani will be the keynote speaker for the Charities Luncheon, and Richard Fisher will be the keynote speaker for the Decision Maker’s Breakfast. Registration is now open.
NAPE Denver – with a new focus on cost reduction, plans for NAPE Denver are well underway.

Business Items:

The Marketing Committee, Todd Liebl, Chairman, proposed a plan to update, in conjunction with Pierpont Communications and the AAPL staff, the Ambassador Toolkit and associated video and PowerPoint. This endeavor is estimated to cost $35,000. A motion to approve the Marketing Committee’s plan as presented was made and passed without opposition.
The FORM 610 JOA Revision Task Force, Fred MacDonald, Chairman, presented the final draft of the new form JOA. The form had been subject to numerous reviews and was a labor of love for the task force for many, many years. A motion to approve the new form (with pending edits) was made and passed without opposition.
The AAPL intends to be very deliberate in the distribution of the new form. It hopes to get industry buy-in, so the form becomes widely used. The task force intends to host an invitation only overview with active operators in early November. Thereafter, the form will be finalized and available for use.
Jeff Weems and Mike Curry are drafting an article that describes the changes to the form for reference.
It is likely, but not yet certain, the new form JOA will be kept online/in-house at AAPL as opposed to Forms on a Disk. 

Mark Epps, Chairman of the Membership and Certification Task Force made a motion to amend the membership and certification policies regarding surface landmen. A motion was made and passed with 3 nay, 1 obstain, and the remainder in favor of the following:

The AAPL Policy Manual, under the “Policies” of the Certification and Membership Committee, shall be amended to include the following:

I). Functions performed by landmen relating to surfaces uses that are directly applicable to the exploration for and/or the development of minerals up to and including either: 1) the first point of sales; or 2) the inlet to a processing plant, whichever is farthest from the wellhead, but not beyond, shall be included under the Bylaws definition of Landwork as reference in Article 2, Section 1, Letters B and E”.

This policy revision clarifies any ambiguities that may have existed around a surface only landman’s ability to join the AAPL as an active member or become certified by the AAPL. 

Other Noteworthy News/Reports:

The issue of the costs associated with the AAPL board meetings was discussed at the Director’s Round Table on September 12, 2015. These costs can be substantial and are often born by underfunded local associations or by the individual directors themselves. As a result, Marc Strahn appointed a new task force to investigate the costs of attendance and to recommend whether the AAPL should provide further financial assistance. Currently the AAPL provides the local associations with $2,500 annually to apply to their respective director’s travel expenses. This task force is expected to present their findings at the December board meeting,
The next Board of Director’s meeting will be on December 6, 2015 at Hotel Monteleone in New Orleans, Louisiana.

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