TO: ALL WAPL MEMBERS
RE: MARCH 2018 AAPL QUARTERLY BOARD MEETING SUMMARY / Submitted March 26, 2018
Dear WAPL Members,
The AAPL Board of Directors held its latest quarterly board meeting on March 11, 2018 at the Estancia La Jolla in La Jolla, California, Texas. Below is a summary of the more pertinent items discussed and/or voted on by the Board of Directors:
AAPL STAFF REPORT
AAPL currently has 18 employees, while NAPE has 6 full-time employees. AAPL is currently looking for an Education & Member Services Director. The advertisement is currently posted.
AAPL membership, as of February 26, 2018, was 15,658, which is slightly above the budget projections of 15,600 for FY 2017-18. Of the reported members, 13,407 hold active, voting member status. The certification status of eligible members is 2,927 CPL; 49 CPL/ESA; 2,135 RPL; 336 RL; and 51 Retired CPL.
A new membership compensation survey will be forthcoming in the 2nd quarter of 2018.
64th ANNUAL MEETING – 2018, DENVER, CO
AAPL will hold its 2018 Annual Meeting in Denver, Colorado on June 19-20, 2018 at the Sheraton Downtown. Save the date license plates have been mailed to the membership. David Lawler, BP Americas CEO will be the Keynote Speaker. Steve Gorman is confirmed to speak at Education Luncheon. Two breakout sessions covering Contract Center are planned during the meeting. There will be 15.5 CEU credits available at the Annual Meeting, if you need the credits for your certification.
Registration is open with early bird savings ending April 11. Sponsorships are available from $200 on up.
66th ANNUAL MEETING – 2020 HUNTINGTON BEACH, CA
AAPL has secured the contract for the 2020 Annual Meeting with the Hyatt in Huntington Beach, California.
The Personify On-line Certification is now fully functional online, though all applications will continue to be reviewed by the Certification Committee.
The AAPL mobile app is now available to download and includes details for all education and member services. It can be downloaded from your phone’s app center.
AAPL’s Contract Center has finalized a contract with COPAS to add the 2005 COPAS. In addition, the 2015 Master Land Service Agreement (MLSA) is being finalized to be added to Contract Center. A model Participation Agreement is being developed by a committee under the leadership of Dorsey Roach. A model Purchase and Sale Agreement is also in the works. As of 2-15-18, Contract Center has 163 subscriptions.
Committee Service Application is now online to express your interest in an appointment to a AAPL committee.
The Connect/Online Communities continue to be widely used by staff and members, including the sharing of ideas, submission of questions, and posting of job opportunities.
NAPE Partners are pleased with the progress being made to control costs, as well as with the year over year growth in both NAPE Summit and Summer NAPE.
NAPE SUMMIT 2018
NAPE celebrated its 25th Anniversary with 12,300 attendees (compared to 11,231 in 2017) and 701 exhibitors (compared to 655 in 2017). NAPE partnered with 88 sponsoring companies to generate $525,125. Early numbers indicate that 2018 NAPE Summit revenues totaled $8,288,270.00, representing an increase of $1,019,657.54 over 2017 and exceeded the 2018 budget by $1,133,270.00.
NAPE Summit featured its new Job Fair, which was popular and well-attended. I would expect this program to come again and expand. NAPE Charities Luncheon welcomed 1,084 attendees and raised $150,000.00. An F-150 was given away at the closing ceremony.
The Education Committee for AAPL is currently working on developing educational courses on Fundamentals of Field Land Practices; Structuring the Deal – Petroleum Economics; Advance Oil & Gas Contract – The Participation Agreement; and Advance Oil & Gas Contracts – JOA.
If you are in need of CEUs, please check the AAPL website for recorded previously-held seminars that should be eligible for credit, at a cost as low as $10/credit.
The Education Task Force is actively developing a volunteer model, 1-day seminar on Held by Production and another 1-day seminar on Due Diligence.
As of 2-12-2018, AAPL has held 36 seminars in the current fiscal year, which were physically attended by 1,436 people and another 236 via webinar. FY 2017-18 education income totals $440,185 with $114,940 in expenses.
AAPL continues to follow employee misclassification audits at the state and federal levels.
AAPL has filed an Amicus Brief in the Dundics case (Ohio) and entered an appearance with comment on the KCC’s investigatory docket on well plugging liability.
All weekly reports for 2017 have been archived on Papervision platform.
Secured a contract with Voter Voice to assist in mobilizing member action on important legislative issues.
As compared to December 31, 2016, total assets have increased from $30,069,402 to $33,535,061, representing an increase of $3,465,659 or 11.5%, which is largely due to market activity in our investment account and fewer transfers to the operating fund. Total liabilities have increased in the same time frame from $1,448,114 to $1,777,398, an increase of $329,284 or 22.7%. This increase in liability is primarily due to deferred revenue related to 3- and 5-year membership dues and Contract Center.
As compared to December 31, 2016, revenues (exclusive of investment revenues) have increased $321,368 or 18.7% from $1,723,342 to $2,041,710. The increase is due in large part to increased membership dues prices, the reinstatement of recertification fees, an increase in publication income and the addition of Contract Center revenue, and rental income from NAPE.
Expenses have increased $253,833 or 8% from $3,160,166 to $3,413,999. The expense increase is due large part from the $545,679 disaster relief contribution by AAPL to the AAPL Educational Foundation. Removing this one-time expense results in an expense decrease of 9.2% overall, due to operational efficiencies such as decreased publication costs (Landman 2), elimination of the government lobbying expenses, cost control on educational seminars, board of director meetings and general and administrative expenses, including shifting 7 FTE from AAPL to NAPE.
Investments increased by $2,444,253 (10.2%) over the same period, with a balance of $26,321,529, as of December 31, 2017. The increase is due to the realized and unrealized gains in the investment account.
FY18-19 CAPITAL BUDGET
The Board approved the FY18-19 Capital Budget of $265,760.00. The Capital Budget includes funds for enhanced security systems and two bathroom upgrades at AAPL Headquarters, a website rebuild, and development of 3 educational seminars, plus a 10% contingency.
FY18-19 OPERATING BUDGET
The Board of Directors has adopted the operating budget for FY18-19. This budget foresees an increase in revenue of $720,145, which is due largely to increased NAPE revenue projections. Operating expenditures are increased by approximately $395,000, due in large part to IT and Education enhancements. The budget projects a Net Income (before Depreciation) of $583,787.
The Sub-Nominating Committee presented its recommended slate of officers for 2018-19 to the ExCom, which unanimously approved the nominations, as did the Board of Directors. The slate of AAPL officers (ExCom) for FY18-19 are as follows:
Mike Curry, President Region V
Jay Beaver, 1st Vice President Region III
Cranford Newell, 2nd Vice President Region VII
Aaron Yost, 3rd Vice President Region II
Charles Walton, Secretary Region VI
Michael A Pisciotte, Treasurer Region VI
David Miller, Immediate Past President Region I
The last 10+ years of the Landman magazine are now posted on the AAPL website for member access.
AAPL is accepting article submissions for the upcoming issues of Landman.
The federal and state departments of labor continue to seek out and audit companies and individuals regarding their independent contractor status. Pennsylvania seems to be under attack by the National Labor Relations Board for the misclassification of employees. The Department of Labor’s stance is that workers are considered employees unless proven otherwise. IF YOU CONSIDER YOURSELF AN INDEPENDENT CONTRACTOR, OR YOU HAVE INDEPENDENT CONTRACTORS PERFORM LANDWORK FOR YOU, I STRONGLY ADVISE YOU TO CHECK OUT AAPL’S INDEPENDENT CONTRACTOR TOOLKIT, available on AAPL’s website (www.landman.org). This toolkit contains important information and resources on how you should position yourself or your company in order to help you prepare if you face an audit, and a guide to Kansas tax and independent contractor regulations.
AAPL’s purpose is to serve its membership through continuing education, providing resources for you and/or your business, and a vast network of oil and gas industry professionals. If you are not already a member of AAPL, please consider joining. The benefits of membership in this good and strong organization are well worth the price of membership.
If you would like more details about anything discussed herein, or about AAPL in general, please don’t hesitate to contact me.
Michael A. Pisciotte, CPL
AAPL Director – Region VI