March 29, 2016
TO: ALL WAPL MEMBERS
RE: AAPL UPDATE AND MARCH, 2016 QUARTERLY BOARD MEETING SUMMARY
AAPL concluded our quarterly board meeting in March at the JW Marriott Starr Pass Resort in Tucson, Arizona. Below is a summary of some of the more pressing items discussed and/or voted on by the board of directors:
AAPL STAFF REPORT
AAPL currently has 30 on staff with 4 vacant positions (Personify Database Administrator, Electronic Media Administrator, Business Development Manager, and Publications/Marketing Manager). HOWEVER, due to operating budget constraints, the 4 vacant positions will not be filled until further notice.
AAPL has closed on the sale of the old headquarters on Fossil Creek Blvd. for a total sale amount of $1,220,547 gross/ $1,102,113 net at closing.
$6.88mm in net proceeds were distributed to the NAPE partners in 2015, which included $4.52mm to AAPL. NAPE Denver was profitable for the first time, despite reduced sponsorship and attendance, due to AAPL staff finding creative ways to reduce expenses. NAPE Summit (February, 2016) had 11,300 attendees, and featured former NYC mayor Rudy Giuliani as the keynote speaker at the NAPE Charities Luncheon, which raised $225,000 for three very special charities.
**Annual Meeting, Orlando, June 14-18, 2016**
ALL AAPL MEMBERS are welcome and encouraged to attend the Annual Meeting. It is always a fantastic venue in which to network with industry people on a nationwide basis, augment your industry knowledge and education, listen to high quality speakers (this year includes keynote speaker Tom Peters, and Alex Epstein, author of The Moral Case for Fossil Fuels, among others). Up to 22 CPL/RPL credits are available by attending the various educational seminars throughout the meeting. If you want to make a family trip out of the Annual Meeting, please consider the discounted entrance packages available to Disney, Sea World, and Universal Orlando. Other activities offered include a party exclusive to AAPL guests at Universal City Walk, a tour of Kennedy Space Center, and a Manatee encounter.
I have personally attended the last two Annual Meetings, and have come away very pleased. The first one I attended in Montreal, my wife and I did not know a soul and were literally the only ones from Kansas, but came away with many new friends and business contacts. The Annual Meeting is a great excuse to blend business and vacation, I highly recommend it!!
PLEASE REGISTER TODAY!!
An important thing that AAPL is working on, especially considering the current economic conditions, is the ability for our members to earn education credits more easily. As you know, AAPL offers dozens of education courses throughout the year at various location across the country. However, the cost to attend these can be prohibitive, as they typically include travel and hotel expense, time away from work, as well as the cost of registration. AAPL currently has about 125 credit hours available ONLINE, available at only $10/credit hour (effective 4/1/16). These online classes are recorded sessions from live AAPL education courses throughout the past several years. There are many topics covered, more information is available at: https://personify.landman.org/personifyebusiness/Education/OnlineCourses.aspx.
Also, AAPL is working on bringing live education courses to you, which will be streamed to a host location of our choice. Several times per year, a popular course will be brought to us, available to all WAPL members for a low cost.
Due to the current downturn, there will be fewer live education courses offered this year.
Current total members as of 2/22/16 = 18,276; 4,931 total designated landmen: CPL – 2,292, RPL – 2,039, RL – 600.
Despite the industry downturn, AAPL’s membership continues to increase, signaling that landmen across the country place a high value on their AAPL membership, and what it offers the land professional.
This board meeting was fairly budget-heavy, as revenues continue to decrease and operating expenses stay steady or even increase. The decreasing revenues are due mainly to decreased NAPE revenues, AAPL subsidizing its educational offerings last year (50% discount on courses), and increased expenses in the technology area as we are in the midst of upgrading our membership database, website, and other features largely “behind the scenes” but yet are necessary to manage a membership of our size.
As compared to 12/31/14, 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 new building loan, transfers of $1,150,000 to the operating account for day-to-day expenses, and reduced value of AAPL’s investments.
As compared to 12/31/14, revenues (exclusive of investment revenues) have decreased 32.4% from $3,183,454 to $2,151,255. The decrease is due in large part to the education program’s 50% reduced tuition. Expenses have increased 10.9% from $1,646,075 to $1,824,630. The increase in expenses is due in large part to the inclusion of depreciation as an expense, credit card processing fees (members can now pay online for education courses), contract labor, director meetings, and new building repair and maintenance.
AAPL CONNECT is a new site where members can create a profile and join various sub-groups or conversations of interest to certain AAPL members. This is accessible through your account on www.landman.org, or by visiting http://aaplconnect.landman.org/home. This online community space is brand new, where members can POST RESUMES, and VIEW JOB POSTINGS, among other things.
JOINT OPERATING AGREEMENT FORM 810-2015
AAPL should be releasing the new JOA form very soon. It will be offered through AAPL directly on the website, instead of Forms-on-a-Disk as in the past. AAPL will also be offering a bank of forms (Oil and Gas Leases, Farmout Agreements, etc.) through its website and will be getting away from Forms-On-A-Disk.
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.
Nicholas D. Hess, CPL
AAPL Director – Region VI