AAPL Directors Report 9-16

AMERICAN ASSOCIATION OF PROFESSOINAL LANDMEN

QUARTERLY BOARD of DIRECTORS MEETING, Jackson Hole, Wyoming

September 11, 2016

The AAPL Quarterly Board Meeting was held on Sunday, September 11, 2016 at The Snow King Resort in Jackson Hole, Wyoming. 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 June 15, 2016 were adopted by acclamation. 

Treasurer’s Report: Jim Bourbeau, Treasurer, provided a report on AAPL and its affiliates for the period ending June 30, 2016 as follows:

As compared to June 30, 2015, AAPL, Inc.’s total assets have decreased from $35,543,394 to $30,842,103 a change of $4,701,291 or 13.2% due in large part to paying $1,338,651 on the building loan out of the operating account, net transfers of $2,330,000 to the operating account to meet day-to-day expenses of which $1,000,000 was used to pay off the building loan, a general decline in the market value of investments totaling $378,882, and a decrease in receivables totaling $463,773.

Revenues (exclusive of investment revenue) compared to June 30, 2015 have decreased 20.1% from $8,808,361 to $7,041,138. The decrease in revenue is due to a reduction in education revenue totaling $349,366, a 39.9% decrease in the NAPE distributions and management fee income totaling $705,006, the elimination of recertification fees totaling $95,995, a decrease in earned due income of $183,139 and decreased attendance at the Orlando annual meeting in the amount of $334,816.
Expenses have decreased 2.7% compared to June 30, 2015 from $9,178,168 to $8,930,847. The net ordinary income (loss) for the 12 months changed from $(369,807) to $(1,889,708). The decrease in expenses is in large measure due to the reduction of expenses associated with the annual meeting.
Investments as of June 30, 2016 are $24,098,738, a decrease of $4,047,533 or 14.4% 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 in the amount of $1,338,651, transfers of $2,330,000 to the operating account, and realized and unrealized losses in the amount of $378,882.

Education Foundation, Inc.’s balance sheet reflects $3,323,221 which is a decrease of $255,833 or 7.1% as compared to the same period last year. The Statement of Investment Accounts reflects $3,282,556 total monies invested which is an increase of $755,606 or 30% as compared to the same period last year.
Landman Scholarship Trust’s balance sheet reflects $6,231,301 which is a decrease of $206,377 or 3.2% as compared to the same period last year. The Statement of Investment Accounts reflects $6,160,961 total monies invested which is a decrease of $132,513 or 2.1% as compared to the same period last year.

The AAPL is striving towards having a balanced budget for the 2017/2018 fiscal year. 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::

Amanda Johnson was the successful candidate to fill the AAPL Controller role vacated by Alan Kottler who retired in July. Amanda was formerly AAPL’s Senior Accountant.
Annual Meeting:

Orlando – 184 members attended the annual meeting in Orlando. Due to the low attendance and resulting low registration fees, our income against budget was down 74%. AAPL was bound to the contract entered into in 2014, so the guaranteed number of hotel rooms and food and beverage minimums precluded a similar reduction in costs commensurate with the attendee reduction. The 2015/2016 fiscal year budget approved in June 2015 assumed a $260,000 loss; the actual loss incurred was $554,000.
Seattle – The contract for the Seattle annual meeting was also negotiated in 2014; however, due to the state of the industry and to avoid losses similar to those seen at the Orlando meeting, the Seattle contract was renegotiated. The original contract assumed 750 rooms whereas the new contract assumes only 300. Register early to ensure accommodations are available at the host hotel! The registration website is expected to be up and running by November 1, 2016.

Membership is at about 75% (13,588) of the total members as of June 30, 2016 which is on track with projections used for the 2016/2017 budget. 45% of eligible members hold AAPL designations.
The membership directory will be published and mailed in the 3Q reflecting the current members as of July 1, 2016. Get your renewal submitted now if you wish to be included in the printed directory.
Members can access articles included in the Landman magazine online at www.landman.org. The archive currently catalogs articles from the last 10 years.

NAPE Report:

Summer NAPE (August 10-11, 2016) – Financials are not yet available for Summer NAPE; however, as projected, attendance was down 36% as compared to last year. Despite the reduction in attendance, feedback from both the exhibitors and attendees has been positive overall.
NAPE Denver (October 12-13, 2016) – It’s not too late to register!
AIPN has agreed to hold its annual winter workshop the week of NAPE Summit (February 15-17, 2017). The AIPN workshop should encourage more international NAPE attendees. Additionally, the OCS Advisory Board has agreed to hold its winter board meeting in conjunction with NAPE Summit which should encourage more OCS attendees. General Colin Powell will be the keynote speaker the NAPE Summit Charities luncheon. Register today!

Business Items:

The board voted on and approved 19 requests from qualified AAPL members seeking senior membership status.
Pam Feist presented the concept of online voting to the board of directors. The AAPL has been researching online voting software/capabilities to simplify and encourage member participation in the voting process and to reduce costs associated with printing and mailing ballots. More to come.
CALLING ALL SPEAKERS! CALLING ALL SPEAKERS! CALLING ALL SPEAKERS! The Education staff and committee are developing a new initiative at the request of the Executive Committee that will provide volunteer speakers on a regional basis for AAPL sponsored workshops and seminars in the 2017/2018 fiscal year. This marks a change to the current approach which relies primarily on compensated presenters for AAPL workshops and seminars. 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 currently 7 AAPL accredited schools that are up for reaccreditation in 2017, and there are 5 new schools that are expected to apply for initial accreditation.
Contract Room will be available online in mid-October 2015. There will be an annual license fee of $375 for AAPL members and $575 license fee for non-member. A license is required to access and edit AAPL contracts managed and house in Contract Room. AAPL will no longer support Forms on a Disk, but Forms on a Disk license holders will still have access to old forms.   
A motion to allow the Annual Meeting Committee to begin working to finalize the details of the 2018 Annual Meeting was made and passed without opposition. The committee will focus their efforts on Denver, Colorado being the target location for the 2018 annual meeting.

Other Noteworthy News/Reports:

AAPL’s own Melanie Bell presented at the Rocky Mountain Mineral Law Institute in July. The topic of Melanie’s presentation was due diligence.
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 December 11, 2016 at the Kingsmill Resort in Williamsburg, Virginia.

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