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Houston Association of Professional Landmen
3 Houston Association of Professional Landmen February 1, 2015 HAPL Bulletin #427 HAPL FEBRUARY LUNCHEON AUBREY K. MCCLENDON HAPL UPCOMING EVENTS: February 19 HAPL Luncheon, Petroleum Club (NEW LOCATION) February 19 www.hapl.org HAPL 1st Annual Spring Swing Membership Drive, Top Golf Aubrey K. McClendon, 55, is Chairman, Chief Executive Officer and Founder of American Energy Partners, LP and McClendon Energy Partners, LP in Oklahoma City. Previously, McClendon served as Chairman and Chief Executive Officer of Chesapeake Energy Corporation, Oklahoma City, since co-founding the company in May 1989 through his departure in April 2013. From 1982 to 1989, McClendon was an independent producer of oil and natural gas. McClendon graduated from Duke University in 1981. OTHER INDUSTRY UPCOMING EVENTS: February 5 TOPIC: “Observations on Current Trends in the Energy Industry” HAPL Service Committee BBQ Dinner, Goldberg Towers February 24 HAPL Board Meeting, Seasons 52 March 19 HAPL Luncheon, Petroleum Club March 26 HAPL 18th South Texas Social, Goode Armadillo Palace April 11 HAPL Service Committee Softball Game, Brookwood Community April 16 HAPL Luncheon, Petroleum Club April 16 NHAPL Half-Day Workshop, Anadarko February 6 AAPL WI/NRI Workshop, The Woodlands, TX February 10 - 13 NAPE Summit – Houston, George R. Brown Convention Center Please note that we will be at the new location for the Petroleum Club for this luncheon and all future luncheons. The new location will be on the top floor of the Total Building at 1201 Louisiana Houston, TX 77002. March 6-7 AAPL/SPE Workshop, Hilton San Antonio Hill Country Hotel April 23 AAPL Ethics 360, Houston Marriot West Loop 1 RPL/CPL credit will be available. Register online at http://www.hapl.org/events/494/. Seats fill up fast so don’t forget to register early! 1 2014-2015 HAPL OFFICERS 2014-2015 HAPL DIRECTORS President – Michael Brennan, CPL TEX-BRIT Corporation [email protected] 713-223-5263 Director – Melanie Bell, CPL BP American Production Company [email protected] 281-336-5905 First VP – Mike Gibson, CPL Cinco Energy Management Group [email protected] 713-463-6009 Director – Al Bettis, CPL Square Mile/Kiwi Energy [email protected] 713-266-3687 Second VP – Justin Matthews, CPL Apache Corporation [email protected] 281-728-3568 Director - Kelly Dickerman Apache Corporation [email protected] 713-296-6592 Third VP - Ben Eisterhold, RPL ConocoPhillips Company [email protected] 832-228-3546 Director – Wade Edington, CPL Crevalle Energy LLC [email protected] 281-316-9258 Secretary – Allyson Johnston, CPL EP Energy E&P Company, L.P. [email protected] 713-997-6712 Director – Justin Ezell Apache Corporation [email protected] 281-302-2531 Treasurer – Eli Huffman Lone Star Production Company [email protected] 713-784-7474 Director – Jeff Hartman, RPL ConocoPhillips Company [email protected] 832-486-3885 Assistant Treasurer – Eric Thomas, CPL SunCoast Land Services, Inc. [email protected] 713-876-4877 AAPL Director, Region IV – Grant Johnson, RPL Lone Star Production Company [email protected] 713-784-7474 Immediate Past President – Joel Loshak Trail Ridge Energy Partners [email protected] 713-754-6253 Director – Jeffrey Klam, CPL Memorial Resource Development, LLC [email protected] 713-898-0368 2 2014-2015 HAPL DIRECTORS (Con’t) 2014-2015 HAPL COMMITTEE CHAIRMEN Director – Mimi McGehee Gulf Coast Energy Resources, LLC [email protected] 713-652-6715 AAPL ANNUAL AWARDS – Ben Eisterhold, RPL ConocoPhillips Company [email protected] 832-486-2624 AUDIT – Eli Huffman Lone Star Production Company [email protected] 713-784-7474 Director – Claire Peterson Anadarko Petroleum Corporation [email protected] 832-636-1619 AWARDS BANQUET – Kelly Dickerman/Brett Jennings Apache Corporation/BP America Production Co. [email protected] [email protected] 713-296-6592/281-504-0826 Director – Stephanie Sullivan, CPL Independent [email protected] 713-504-9814 EDITORIAL – Ben Eisterhold, RPL ConocoPhillips Company [email protected] 832-486-2624 HAPL OFFICE STAFF EXECUTIVE NIGHT – Curt Horne, CPL Percheron LLC [email protected] 832-300-6400 Diane R. Snyder Executive Administrator/Newsletter Editor HAPL [email protected] or [email protected] 713-622-6868 GOLF – Justin Ezell Apache Corporation [email protected] 281-302-2531 Lindsey Griffith Executive Assistant/Membership Desk/ Historian - HAPL [email protected] 713-622-6868 GOVERNMENTAL AFFAIRS – Joel Loshak Trail Ridge Energy Partners, LLC [email protected] 817-328-6012 INFORMATION TECHNOLOGY – Jaime Losada TEX-BRIT Corporation [email protected] 832-477-6261 Elaine Bordieri HAPL Bookkeeper The Bella Group [email protected] 713-775-6855 LUNCHEONS – Justin Matthews, CPL Apache Corporation [email protected] 281-728-3568 MEMBERSHIP – Jeffrey Klam, CPL Memorial Resource Development, LLC [email protected] 713-898-0368 MENTORING PROGRAM – Eli Huffman Lone Star Production Company [email protected] 713-784-7474 3 2014-2015 HAPL COMMITTEE CHAIRMEN (Con’t) 2014-2015 HAPL COMMITTEE CHAIRMEN (Con’t) NEXT GENERATION LANDMAN – Matt Bruns EP Energy E&P Company L.P. [email protected] 713-997-3205 SKEET SHOOT – Wade Edington, CPL Crevalle Energy LLC [email protected] 281-316-9258 NOMINATING – Joel Loshak Trail Ridge Energy Partners, LLC [email protected] 817-328-6012 SOCIAL (ENERGY ENTREPRENEURS) – Laura Cass, CPL Independent [email protected] 713-865-2963 OUTSTANDING LANDMAN – Mike Brennan, CPL Tex-Brit Corporation [email protected] 713-223-5263 SOCIAL (OFFSHORE) – Bailey Coe Eni US Operating Co., Inc. [email protected] 713-393-6136 OUTSTANDING SENIOR AWARD – Joel Loshak Trail Ridge Energy Partners, LLC [email protected] 817-328-6012 SOCIAL (PERMIAN BASIN) – Tyler Woodruff Alamo Resources [email protected] 832-657-8005 PAST PRESIDENT’S COUNCIL– Randy Browne, CPL Haynes & Boone, LLC [email protected] 713-547-2227 SOCIAL (ROCKIES) – Mark Metz, CPL Oasis Petroleum, Inc [email protected] 281-404-9452 POLICY MANUAL COMMITTEE – Paul Nielsen, CPL The Kilburn Law Firm [email protected] 713-974-1333 SOCIAL (SHALE PLAY) – Allyson Johnstone, CPL /Jonathan Click, CPL EP Energy E&P Company, L.P/Tex-Brit Corporation [email protected] [email protected] 713-997-6712/832-725-9910 SALTWATER FISHING TOURNAMENT – Jerry Niekamp Dunn Exploration Company, LLC [email protected] 713-533-1217 SOCIAL (SOUTH LOUISIANA) – Eric M. Thomas, CPL SunCoast Land Services, Inc. [email protected] 713-375-3300 SATURDAY SEMINAR (FALL) – Daniel Negron, RPL ConocoPhillips Company [email protected] 713-447-6868 SOCIAL (SOUTH TEXAS) – Joe Dichiara, RPL/Clint Yaeger BAYTEX Energy/Murphy E&P Co. - USA [email protected] [email protected] 713-402-1934/281-675-9206 SATURDAY SEMINAR (SPRING) – Rachel Johnson ConocoPhillips Company [email protected] 832-486-3051 TECHNICAL WORKSHOP – Al Bettis, CPL Square Mile Energy, LLC (Kiwi Energy, Ltd.) [email protected] 713-266-3687 SCHOLARSHIP – Stephanie Sullivan, CPL Independent [email protected] 713-504-9814 TRIBUTE TO EDUCATION – Stephanie Sullivan, CPL Independent [email protected] 713-504-9814 SERVICE – Mimi McGehee Gulf Coast Energy Resources LLC [email protected] 713-652-6715 UNIVERSITY LIASION – Luke McCarley Sabine Oil & Gas [email protected] 832-530-1589 SHALE PLAY SEMINAR – Stephanie Sullivan, CPL Independent [email protected] 713-504-9814 4 McCormick & Associates LLC Complete Land Services Anywhere in the United States by Experienced Professionals You Can Trust HOME OFFICE PO Box 13690 | Odessa, TX 79768 432-614-2169 432-248-4382 mobile 432-614-2478 fax 866-269-1829 toll free Oklahoma PO Box 2317 Stillwater, OK 74074 Montana PO Box 3626 Lewistown, MT 59457 Arizona PO Box 7584 Tempe, AZ 85281 [email protected] www.mccomickllc.com AAPL HAPL DWIGHT SNELL & ASSOCIATES Dwight Snell, CPL/ESA P.O. Box 407 • Simonton, Texas 77476 (281) 346-1932 • FAX (281) 346-1972 [email protected] Professional Land Services Cost-Effective Time Frames 5 HAPL OFFICER FORUM ASSISTANT TREASURER ERIC M. THOMAS, CPL When asked to compose an article for circulation in the next HAPL Newsletter, I spent many days mulling over the perfect topic. However, every topic I could come up with felt grossly overshadowed by today’s declining Energy Market. If you are reading this Newsletter than it is likely that you’re feeling the effects of sub $50/barrel crude. Compounding the issue is a declining Natural Gas commodity which has fallen over 30% since December, due in large part to an unseasonably temperate winter, amongst other factors. The big question looming overhead, keeping all of us up at nights – Where is the bottom? As a second generation field Landman, I now enter my 15th year in this business, working in multiple disciplines across the country. During this time I’ve experienced highs and lows, as many of you have. Nevertheless, there are many Landmen and Land Professionals who have entered the Energy Industry during the Shale Play Boom who have not yet experienced a downturn of this magnitude. Let me qualify that I am in no way, shape, or form a commodities expert. I have no magical answer, nor will I add to the multitude of predictions of when the market will stabilize. I would however, like to speak to the immediate challenges facing industry newcomers. There are many sayings we often hear in slow times such as these: “let it blow over”, “hunker down”, “keep your head down” - but these old adages offer little relief, focusing on issues which we have no control over. During these times we must focus on things we can change, taking comfort in our network of family, friends, colleagues and industry associations. Back in August of 2014 our HAPL President, Michael E. Brennan announced the 2014-2015 theme “STAND UP AND BE COUNTED”. Now, more than ever is the time to invest in your chosen career, schedule continuing education courses, achieve the accreditations/certifications you’ve put off, reestablish yourself within your local associations and capitalize upon the resources provided by the AAPL. The HAPL is stronger than ever, with increased active and associate memberships, including amass of industry leaders. Now is the time to get out of your comfort zone, put yourself out there, and get in front of your next opportunity. I think Seneca said it best, “Luck is what happens when preparation meets opportunity.” Truthfully, I spent the first seven years of my career with little to no involvement within the AAPL or local chapters. It was then that I experienced my first major downturn back in 2008. Reminiscent of today’s market, there was little work to be had and much uncertainty. Those circumstances forced me out of my comfort zone, I had to get out there and make something happen. Since 2008, I have attended countless continuing education seminars, attained my RPL and CPL endorsement, volunteered at local industry events and was even fortunate enough to be voted into the executive board of directors of both the HAPL and WHAPL. The knowledge, networking and opportunities I have ascertained through my local associations has drastically changed my career path. It is with experience and certainty I say do not wait for an opportunity to find you, “STAND UP AND BE COUNTED”. Check out the calendar of events on our newly redesigned website www.HAPL.org., with so many industry events coming up, it’s easy to get involved. And please don’t forget to visit us at the NAPE Expo in February at booth #1251 to find out more about how you can get involved with the HAPL! Eric M. Thomas, CPL 6 MARK YOUR CALENDARS AAPL WI/NRI WORKSHOP NAPE SUMMIT FEBRUARY 12-13TH, 2015 FEBRUARY 6, 2015 Where: Anadarko Conference Center (Allison Tower) 1201 Lake Robbins Drive The Woodlands, TX 77380 When: 8:00 AM- 12:00 PM 6 RPL/CPL Credit Come see HAPL at booth #1251! Bring some new members and get them signed up! We can also renew your dues and update your profile picture! Register for all events and additional info at https://aapl.ps.membersuite.com/events/ViewEve nt.aspx?contextID=7d8785ce-0078-c2f0-7a1b0b391f0162fc AAPL/SPE WORKSHOP March 6-7th, 2015 “Enhancing Community Conversations: From Acquisition through Production” Hilton San Antonio Hill Country Hotel 9800 Westover Hills Boulevard San Antonio, TX 78251 You can register for either the 1-day primer training course, as well as the 2-day institute via the SPE website and the following is an overview of the 2-day institute: http://www.spe.org/events/15jsan/pages/abo ut/ 7 8 HAPL 18TH ANNUAL SOUTH TEXAS SOCIAL COME JOIN US FOR BBQ, BEER, FUN & DOOR PRIZES! On Thursday, March 26, 2015, the Houston Association of Professional Landmen ("HAPL") will be hosting its annual South Texas Social from 5:00 p.m. to 8:00 p.m. For the ninth year in a row, the Social will be held at "Goode’s Armadillo Palace" on 5015 Kirby, which has been a terrific venue for the South Texas Social. We are requesting sponsor commitments in advance in order to reserve the exciting venue! A financial contribution by you or your company will ensure the success of this very special event. All sponsoring companies will be recognized at the event with the company name and level of sponsorship prominently displayed. In addition, the sponsor information will appear in the HAPL newsletter and possibly other publications. The following sponsorship levels are available: PLATINUM LEVEL $1,000 or above GOLD LEVEL $500-$999 SILVER LEVEL $250-$499 BRONZE LEVEL $249 or less 2015 HAPL South Texas Social sponsor checks can be made payable to "HAPL" and sent to: HAPL South Texas Social c/o Joe Dichiara, RPL Chairman Baytex Energy 713-402-1934 1200 Smith St., Ste. 2300 Houston, Texas 77002 [email protected] 9 LEGAL UPDATES: OPERATORS MAY USE THE SURFACE ON A TRACT TO PRODUCE OIL AND GAS FROM ANOTHER TRACT IN THE POOLED UNIT BY: ELI KIEFABER & ZACHARY OLIVA OF KIEFABER & OLIVA LLP The Texas Supreme Court in Key Operating & Equipment v. Hegar, No. 13-0156, 2014 Tex. LEXIS 504 (Tex. June 20, 2014) concluded that a lessee in a pooled unit has the right to utilize the entire surface acreage of the pooled unit regardless of where the well will be drilled or where actual production occurs. The dispute in Key Operating arose from the use of a road across one tract of land to access the producing well within the pooled unit on another tract of land. Typically, pursuant to the accommodation doctrine, the mineral lessee has the right to use the surface of that land to produce and removal minerals from that land. Merriman v. XTO Energy, Inc., 407 S.W.3d 244, 248-49 (Tex. 2013). In Key Operating, Key Operating and Equipment, Inc. (“Key”) operated the Richardson No. 1 well on the Richardson Tract. In 1994, Key also acquired oil and gas leases covering a contiguous tract (the Curbo Tract) and reworked the Rosenbaum No. 2 on the Curbo tract. Key Operating, 2014 Tex. LEXIS 504, at *1-2. Also, in 1994 Key built a road on the Curbo Tract to access both the Richardson No. 1 and Rosenbaum No. 2 wells. Id., at *2. Subsequently, the Rosenbaum No. 2 stopped producing and Key’s lease expired; however, in 2000, Key’s owners purchased an undivided interest in the mineral estate of the Curbo Tract and leased that interest to Key, which lease authorized Key to pool the Curbo Tract. Id. Key then pooled the 10 acres of the Curbo Tract with 30 adjoining acres of the Richardson Tract. Id. In 2002, Will and Loree Hegar bought 85 acres of the Curbo Tract, which acreage included the road Key used to access the Richardson No. 1 well. The Hegars did not dispute Key’s use of the road until Key drilled the Richardson No. 4 well, which greatly increased the traffic on the road across the Curbo Tract. Id. The Hegars filed suit and argued that Key’s use of the road constituted a trespass and that Key could not use the road across the Curbo Tract to produce minerals from another tract. Id. at *3. The trial court and appellate court concluded that “Key had no right to use the Hegars’ surface to produce minerals exclusively from the Richardson Tract [and that] Key’s lease and pooling agreements, which were not part of the Hegar’s chain of title, could not contractually expand Key’s right to use the Hegar’s surface.” Id. at *4. The Texas Supreme Court reversed and concluded that Key did have the right to use the road across the Curbo Tract to produce minerals from the Richardson Tract. First, the Court addressed the fact that the lease covering the Curbo Tract was pooled with the lease covering the Richardson Tract. The Court explained that “[t]he primary legal consequence of pooling is that ‘production and operations anywhere on the pooled unit are treated as if they have taken place on each tract within the unit.’” Key Operating, 2014 Tex. LEXIS 504, at *8 (quoting Se. Pipe Line Co. v. Tichacek, 997 S.W.2d 166, 170 (Tex. 1999)). Thus, because “[b]ecause production from the pooled part of the Richardson Tract was legally also production from the pooled part of the Hegar Tract, Key had the right to use the road to access the pooled part of the Richardson [T]ract.” Id. at *10. (Continued on page 11) 10 Next, the Court explained that because Key’s owners owned a portion of the mineral estate under the Hegar Tract, they “had the right to use the surface of the tract to develop and remove minerals from it, including the right of ingress and egress to do so.” Id. at *14. The Court explained that the right of ingress and egress was not limited for the purpose of producing minerals from the leased tract, but included the right of ingress and egress to access any pooled acreage and produce minerals from the pooled acreage. Id. at *14-15. “Accordingly, Key’s owners did not increase the burdens on the surface estate by leasing their mineral interest to Key, nor did Key increase the burdens by pooling the Richardson and [Curbo] tract minerals.” Id. at *15. Additionally, as Key’s owners had owned mineral rights in the Curbo Tract, they had implied property rights to use the surface; thus, it was not necessary for the Court to determine whether the lease covering the Curbo Tract was required to be in the Hegar’s chain of title in order to bind them. Id. at *9. The Texas Supreme Court’s decision in Key Operating is significant because it allows a lessee to pool acreage and utilize the surface of any tract within the pooled unit regardless of whether there is production of minerals from that tract. Eli Kiefaber is a partner with Kiefaber & Oliva LLP. Eli focuses his practice on oil and gas matters, including acquisition and divestiture of oil and gas assets, title opinions, joint operating agreements, federal leases, pooling and unitization issues. Eli is licensed to practice law in Texas, Oklahoma, Colorado and Ohio and is a regular speaker on issues relating to the development of unconventional shale plays and has given a variety of presentations regarding legal issues relating to oil and gas development. Eli earned his B.A from Kenyon College and his J.D., with honors, from Marquette University Law School. Zachary Oliva is a partner with Kiefaber & Oliva LLP. Zack focuses his practice on energy and corporate law. He regularly assists clients in the drafting of oil and gas title opinions, purchase and sale agreements and contract interpretation. Additionally, he assists clients with the negotiation, drafting and review of business formations, contracts and service agreements. Zack earned his B.A. from The Ohio State University and his J.D. from Capital University Law School. He is licensed to practice in New Mexico, Ohio and Texas. 11 12 HAPL SERVICE COMMITTEE – SAVE THE DATES Thursday, February 19 – Goldberg Tower BBQ and Bingo Night – 5:30 to 8:00 pm -10909 Fondren Once a year the Service Committee of HAPL goes to the Goldberg B’nai B’rith Towers and caterer’s a BBQ dinner to about 125 residents of the lower income Senior Citizens Housing complex. HAPL is the only organization all year that provides a free hot meal to this community. During dinner, we need volunteers to serve the BBQ and others to help less mobile residents get their plate and beverage to the table. After dinner we play bingo for Wal-Mart gift cards as the prizes. The residences of Goldberg are always so very appreciative of the dinner and time we spend with them; any HAPL member who participates walks away feeling like they really did make a positive difference in someone else’s life that day. Saturday, April 11 – Brookwood Community – Softball Game – 9:30am – 12pm – Brookshire, Texas Come and join in the fun of playing softball in this beautiful setting amongst the blooming wild flowers. This will be the eleventh year HAPL has been at Brookwood. Brookwood is a private facility for mentally challenged adults. Brookwood is in the process of building an even better softball field and HAPL funds will have paid for a greatly needed back stop. We should be able to see the progress this year and hopefully play on the new improved field. After the game, James Coney Island is there to serve the All-American baseball lunch; hot dogs and soft drinks. The Brookwood residents all look forward to this annual event once it is announced. This is a great family volunteering opportunity. Both these events have helped HAPL win AAPL awards for service to our community. Seriously consider keeping this recognition going by giving back just a little of your time. If you are interested in being at either event, please contact the Chair of the Service Committee, Mimi McGehee at [email protected]. 13 HAPL SERVICE COMMITTEE – JINGLE BELL EXPRESS TOY DRIVE Thanks to everyone who donated Target Gift Cards to the Christian Community Center’s Jingle Bell Express toy drive. Here are just a few of the happy faces of those who received a wonderful Christmas present because of your generosity. 14 15 HAPL SCHOLARSHIPS DEADLINE: ON OR BEFORE APRIL 1ST Scholarships of $1,000 each will be awarded to the children of our HAPL membership who will be graduating this year from high school. The criteria for applying can be located at www.hapl.org. The HAPL will also be awarding one or more PLM/Energy Commerce College students at least a $1,000 scholarship to be applied to the college of his/her choice. Fully completed scholarship applications, transcripts (if required) and letters of recommendation are due at the HAPL offices located at 800 Bering Dr., Ste. 120, Houston, TX 77057 on or before April 1st. Late applications will not be considered. Scholarship recipients will be contacted prior to the “Tribute to Education” luncheon which will be held at the Petroleum Club, Downtown Houston, on May 21st, 2015. All student recipients are encouraged to attend along with their parents as our guest. The HAPL Student Scholarship criteria and application can be located by visiting our website at http://www.hapl.org/scholarships/. For any questions please contact the Scholarship/Tribute to Education Chairman - Stephanie Sullivan at [email protected] or 713-504-9814 or the HAPL office at [email protected]. 16 HAPL 1ST ANNUAL SPRING SWING MEMBERSHIP DRIVE HAPL Spring Swing Top Golf Membership Drive Thursday, April 16, 2015 Top Golf West (Katy Freeway service road) William F. O’Neal, Castex Energy, Inc., Chairman ENTRY FEE: $65.00 Per player (Entry fee includes 2 Hours of Golf, Food, and Soft Drinks) PAYMENT METHOD: Payments can be made on the HAPL website through the donations link. If a check is necessary please include with the team registry form included below. REGISTRATION: DEADLINE IS March 16, 2015. Registration is on a first come, first serve basis and you are not considered registered until the entry fee is received. The tournament is open to all members of the Land Work Industry. Each bay consists of 3 people per side. If you desire to play on a set Team it must consist of either 3 OR 6 people exactly. All other entries will be arranged in a potluck format. A Team Representative must be designated and must have his/her contact information below. TOURNAMENT DAY: Check-in will begin for all golfers at 6:00 p.m. on Thursday, April 16, 2015 at the Top Golf West Side. We will be stationed on the third floor and will also have access to the lounge. Rush hour traffic is always bad, so please plan accordingly. FORMAT: 3/6-man teams. Select/register your team or let the Golf Committee place you on a team. QUESTIONS/PROBLEMS: Please contact Will O’Neal (281) 447-860, or the HAPL Office – Diane Snyder (713) 622-6868. X-----------------------------------------------------------------------------X----------------------------------------------------------------------------X Please detach and mail with your check to: CASTEX ENERGY, Inc. MAKE CHECKS PAYABLE TO: Attention: William O’Neal “HAPL” 333 Clay Street, Suite 2000 Houston, TX 77002 [email protected] PLEASE PRINT OR TYPE Team Member Company Circle One: Team Registry/Single Cost/player Team Representative/Single Team Member Team Member Team Member Team Member $65 $65 $65 $65 $65 $65 Team Member * Team Representative (must have contact information or you will not be notified of your flight or reschedules) Work phone:__ _____________ Fax #:_________________________ Email:__ _______________________________________ Lounge Only @ $25/Non-Golfer:___________ TOTAL AMOUNT ENCLOSED: _______________ 17 Check #____________ 18 19 AAPL DISTRICT IV DIRECTOR REPORT T. GRANT JOHNSON AAPL DIRECTORS REPORT REGION IV The second quarterly AAPL Board Meeting was held on December 7, 2014 at the Intercontinental Stephen F. Austin Hotel in Austin, Texas. AAPL President Roger Soape (HAPL President-1991) called the meeting to order to discuss range of topics presented by AAPL Staff, Executive Committee Members, Committee Chairman and Regional Directors. The following is a salient list of subjects that were brought for consideration, discussion and approval during the meeting: Staff Report Marty Schardt reported that we had several interested parties looking at the old AAPL headquarters and adjacent AAPL owned 3.8 acres. The hopes are to get one of these parties to purchase both the building and the property in one transaction. If necessary we will separate the sales if we can sell at the same time so as to not end up with one asset remaining potentially making it hard to sell the remainder. AAPL’s staff started their move to the new building December 1, 2014. The building was initially misaddressed for some strange reason. The city of Fort Worth insisted on a change of the address. The new address is 800 Fournier, Fort Worth, Texas 76102. A utility outage during the first week required much of the staff to work from their respective homes which allowed the movers full access to the facility. Most of the renovations were done ahead of time. Unfortunately, the air conditioners were old and in need of replacing but it was hoped that we could squeak a few more years out of old units. However, they started failing during the move in. Given the immediate need for new ac units, the additional need for conference room renovations and some technology upgrades; Marty asked for a budget of $200k. The motion was made, voted upon and passed. At the old building, the computers, furniture, etc. were owned by the AAPL Educational Foundation. The values of these items were roughly estimated to be $112k. For accounting reasons, AAPL needs to purchase these items from the Educational Foundation so it can transfer them to the new building. A motion was made, voted upon and passed approving the purchase of these items at a specific value to be further determined but not to exceed $200k. Southwestern Energy is moving their offices in Houston. They have very generously offered to donate some of their current furniture to AAPL to help furnish the new offices. This is a huge gift and is much appreciated by AAPL. Marty reported that the new association software, Personfify is going live January 7, 2015. This is anticipated to be a big improvement over how AAPL manages its membership info. Additionally, Marty reported that both the NAPE Audit and AAPL Audit were completed during the quarter. Both audits showed no major deficiencies and our assets continued to grow over the last year. Financials As of September 30, 2014 total assets for the AAPL have increased from $31,948,114 in 3Q 2013 to $34,061,993, a change of 6.62% or $2,113,819. Revenues (exclusive of investment revenues) for the same period have increased by 9% to $1,337,192 and expenses have increased by 21.6% to $1,630,273. This increase in expenses was due in large measure to increased staff to accommodate growth of both AAPL and NAPE, and hiring temporary workers to manage the ethics requirements associated with the current year’s dues renewal. AAPL Treasurer, William Justice also reported that Investments are $27,369,952, a decrease of $3,392,936 or (11%) as compared to the same period last year. The decrease was the result of realized and unrealized gains, dividends, and contribution of $4,000,000 stock from AAPL to the Landman Scholarship Trust. The total assets in the AAPL Education Foundation Inc. currently amount to $3,980,238. Additionally, the total assets in the AAPL Landman Scholarship Trust currently amount to $6,322,677 including the recent transfers. (Continued on page 20) 20 NAPE NAPE Houston (Summer) held August 20-22, 2014 was another success. Marty reported that revenues were $2,950,000 and expenses were $1,500,000 leaving a net profit of $1,500,000 for AAPL and its partners. After management fee, AAPL made $922,000 from the NAPE Houston event. On October 21, 2014 NAPE had its Launch Party whereby the new branding was displayed. The NAPE marketing team and the marketing firm of Weber Shandwick combined efforts are doing a wonderful job putting a new face on NAPE. They are using all forms of social media to get the word out about the largest prospect expo in the world. The new NAPE theme is “Where Deals Happen”. NAPE Rockies is scheduled for December 10-12, 2014 in Denver, CO and is expected to have good attendance this year. DAPL hosts their Rockies Rendezvous on the opening evening. It is one of DAPL’s biggest events of the year and well attended by NAPE registrants. NAPE will be changing its format for the regional shows, NAPE Houston (Summer), NAPE Denver and NAPE Pittsburgh. The new format will host the Business Conference on Wednesday morning and Business Conference Luncheon. The exhibit floor will open at 1 PM on Wednesday and close at 5:30 on Thursday. There will no longer be a Friday half day. This will cut costs, allow for less travel on Fridays and avoid the appearance of a slow day as typically seen on regional NAPE Fridays. This new format will not apply to the NAPE Summit (Winter). NAPE Summit 2015 is scheduled for February 11-13. Former First Lady Laura Bush is scheduled as the keynote speaker for the NAPE Charities Luncheon. NAPE has secured Former Alaska Governor, Sara Palin to speak at the Decision Makers Breakfast on Feb 12th. President and Executive Committee Report Roger told of how the Field Landmen Institutes are very well attended and one of the great ways AAPL is working with the Field Landmen. He told of a task force that is looking at ways to heighten the organizational structure of AAPL rather than flatten. By doing so it will help the AAPL staff be more effective and efficient. A new employee handbook is being developed to help staff members know appropriate communication channels for human resource issues. AAPL Business Items • The Landman Scholarship Trust has over $6mm in assets and granted $250k in scholarships. • New Accreditation Committee to work with accredited schools and new school requests. • A motion was made to start new committee to look into online schools to see if any would meet the accreditation standards. The motion was voted upon and passed. • Certification Committee Chair Russell Shinevar reported on the certification process. He went over the history and the fact that the rules have been amended 15 times since being enacted in 1979. In 1999 the requirement of “negotiation” experience was added. Russell pointed out the definition of a Landman in AAPL Bylaws differs from that in the Certification rules and definitions. The committee proposes changing the definition in the Certification rules to match that of the Bylaws. He reminded the board that both definitions specifically exclude DO Analyst and Land Techs. The items discussed were to amend the certification of Landwork to include the determination of ownership in mineral through research of public and private records. His proposal to be clear that abstractors, photo-shooters, deed copies, etc. who exclusively perform these tasks will not qualify for certification. In addition, the committee would like to see the reduction in that the amount of education credit years and the increase in actual experience years. Specifically for RPL, the committee asked the board to consider an increase to 6 credit years required with a minimum of 3 years actual experience. For CPLs, increase to 12 credit years, capping educational credit years at 4 (instead of 5) and a minimum of 8 years of actual experience. A motion was made and discussion was had but no vote was taken. The committee is going to draft language for consideration and send to directors prior to the next board meeting. If you are interested in this topic please send me an email and I will get you a copy of the preliminary PowerPoint that was handed out at the board meeting. Strategic Planning Committee Marc Strahn reported his new committee has identified 9 committees where long term planning would be helpful to the organization. Plans will be requested from these 9 committees for a 1, 3 and 5 year basis. (Continued on page 21) 21 Publication Committee The committee is soliciting potential articles for publication from various sources. If you have any ideas please contact this committee. Tax Issues Committee David Nolen reported that his committee is creating an Independent Contractor Toolkit which members will soon be accessed through a link on the AAPL website. Legislative/Regulatory Committee Mike Flores reported that AAPL will be before the new Texas Legislature to further clarify that Landmen are independent contractors. We will being seeing something on this early next year. AAPL’s Holly Carless has done an outstanding job with AAPL’s new Legislative & Regulatory Affairs Report dated December 6, 2014. This very informative report will soon be available to AAPL members via the website. Awards Committee This committee is considering a “Company of the Year” award for companies that go above and beyond in their support for AAPL. Technology Committee Glen Mauldin, Committee Chair, reported on the Personify software update. After going live on January 7, 2015, the committee will begin to get serious about looking at alternative ways to bring in-house our AAPL forms distribution and management. Membership Current AAPL Membership as of November 1, 2014 stands at 18,562 total members. With the new multiyear renewals we have 1391 three (3) year renewals and 495 five (5) renewals. The committee is working to gain various discounts for hotels, restaurants, etc. for AAPL members. Forms Committee-JOA Task Force The 1989 Form with Hz modifications is available thru Forms-On-A-Disk. The committee has completed its modifications to the 1982 JOA. It is now working on the all-new 2015 JOA Form 610. This form is now in the first level peer review phase. It is anticipated that this form will be completed in 2015. They hope to have the form ready for a confirmation vote at the Annual Meeting in June 2015. The chairman of this committee, Fred MacDonald reminded everyone that these forms are to be used as “templates” since they are designed for distribution on a national level. Marketing Committee The online AAPL Store is up and running. Please visit this site for your AAPL and Member Mark gear. AAPL won the International Association of Business Communicators (IABC) Silver Quill Award of Excellence for our “Meet Us” campaign. The award was presented to Le’Ann Callihan and Megan Ledford at the IABC Southern Region Silver Quill Awards Luncheon in Austin on October 16th. Annual Meeting Arine Schulberg’s committee is working hard on the annual meeting slated for June 16-20 in Nashville. Registration should go live Monday, January 19th. The next AAPL Board Meeting is scheduled for March 14-15, 2015 in Charleston, SC. It is the duty of your AAPL Director to represent the views and positions of the HAPL. If you have any AAPL issues or concerns that you wish to discuss in greater detail, please feel free to contact me or any HAPL Board Member. Respectfully submitted by: T. Grant Johnson – AAPL Director Region IV – Houston Lone Star Production Company – 713-784-7474 – [email protected] 22 23 NEWS FROM THE HILL HB 736 by Rep. Phil King Currently, the Texas Labor Code defines what constitutes a landman, acting as an independent contractor, for purposes of determining unemployment benefits. To be classified as an independent contractor, the landman must be an individual who is 1) engaged in landman services; 2) is paid for the performance based on completion of specific contracted for tasks and not based on hours worked; and 3) paid pursuant to a written contract. It is the provision in item #2 listed above relating to the “completion” of the tasks that has generated some ambiguity in the interpretation of the landman independence standing and has resulted in at least two Texas Workforce Commission cases challenging the independent contractor status of landmen in specific instances. HB 736 clarifies that the work performed under a written contract does not constitute “employment” if the individual 1) is working as an independent contractor; and 2) the employer does not determine the means and methods of the work being performed; and 3) the landman’s compensation of the contracted services is directly related to the performance of the services. HB 736 also, for consistency purposes, amends the definitional provisions in the Tax Code. The amendments made in this bill are a clarification of existing law. Kind Regards, Holly Carless AAPL Governmental Affairs Liaison [email protected] 24 HAPL 20TH ANNUAL SALTWATER FISHING TOURNAMENT Date: Saturday, June 6, 2015 Time: 5:00 A.M. - 2:00 P.M. - No Check-In Required Cost: $75.00 per person for H.A.P.L. Members; $125.00 for Non- H.A.P.L. Members; $75.00 per person if 18 years and younger (HAPL Member or not) - Lunch included with your Entry Fee (starting at 1:00 p.m.) Prizes: Cash Prizes for Trout, Slot Redfish, Tagged Bull Redfish and Big Fish; plus Door Prizes Questions: Call Jerry Niekamp at 713-252-1457 or Ed Gorden at 713-819-5215 Place: West End Marina in the Sea Isle Subdivision, Galveston, Texas. Entry Deadline: ENTRIES MUST BE RECEIVED BY MAY 19, 2015. LATE ENTRIES WILL NOT BE ACCEPTED THIS YEAR. Rules and Regulations: 1. All local, state and federal, coast guard and Texas Parks and Wildlife Department regulations and laws apply at all times during the tournament. 2. Professional fishing guide(s), commercial and professional fishermen and anyone who has guided for compensation during the last twelve (12) months are not eligible to compete in the tournament. You may hire a guide, but the guide’s catch is not allowed and there is no swapping or trading of fish between contestants and/or guide. 3. The tournament format shall be as follows: a. Only speckled trout and redfish and “Big Fish” (defined below) will be accepted for weigh-in. The format includes a “Trout Category” (only 3 legal speckled trout per entrant), a “Bull Redfish” Category, (which is one bull red which must be ‘tagged’), “Slot Redfish” Category (maximum of 2 legal slot redfish between 20” - 28”), and a “Big Fish” Category, which can be any legal fish, except speckled trout or redfish. b. Tournament fishing hours are from 5:00 a.m. (no check-in required) to 2 p.m. Saturday, June 6, 2015. Legal Fish may be weighed-in on Saturday until 2:00 p.m. No weigh-ins will be accepted after 2:00 p.m. (unless you are in the weigh-in line at 2 p.m.). Each contestant may weigh-in a total of 3 Speckled Trout, 2 Slot Redfish, 1 Bull Redfish (tag must be properly attached) and 1 "Big Fish" caught during the tournament. In the event of a tie, the earliest weighed-in wins, so make sure you have the weighmaster indicate weigh-in time. Guides may be hired but the guide’s catch is not allowed. There is no trading or swapping of fish by any Entrant. Fish cannot be culled once they are weighed in. The tournament is based on an individual’s catch, not on a team. Weigh-in is at the Sea Isle Bait Camp at the Marina in Sea Isle. The cash purse shall be split equally between the four categories, (being the Trout category, the Slot Redfish category, the Bull Redfish category and Big Fish category), and will be divided as follows for each category: TROUT 1st - 50% 2nd - 30% 3rd - 20% 4. SLOT REDFISH 1st - 50% 2nd - 30% 3rd - 20% BULL REDFISH 1st - 50% 2nd - 30% 3rd - 20% BIG FISH 1st - 50% 2nd - 30% 3rd - 20% Contestants must fill out, sign and return the RELEASE AND INDEMNITY AGREEMENT furnished with these rules in order to be eligible to participate in the tournament and such agreement shall be considered the Tournament Entry Form. (Continued on page 21) 25 5. ENTRIES MUST BE RECEIVED BY MAY 19, 2015. LATE ENTRIES WILL NOT BE ACCEPTED THIS YEAR!!! 6. The official weigh-in station is at Sea Isle Bait Camp at the West End Marina in the Sea Isle Subdivision. Tournament Officials (Ed and Jerry) have the final say as to compliance/weigh-ins/winners. Failure to follow the rules results in disqualification. In the event a Category is not “fully placed” (i.e.-for instance only 2 places are weighed in for that Category), the monies as to that Category will be split equally between the existing winners in that Category. 7. All contestants assume any and all risks to their safety throughout the tournament. NO REFUNDS FOR ANY REASON!!! This Tournament benefits the HAPL to help support the HAPL. Should a hurricane occur, the tournament date will be moved. Fill out the entry form below and mail it along with a check payable to the HAPL. Mail to Jerry Niekamp at 1223 Augusta #31 Houston, TX 77057. ENTRY FORM AND RELEASE AND INDEMNITY AGREEMENT FOR THE HAPL TRUCHA DEL MAR INVITATIONAL SALTWATER TOURNAMENT The undersigned hereby releases, holds harmless and forever discharges the HAPL Invitational Saltwater Fishing Tournament (“Tournament”), its officials, hosts or any other person, association, firm or corporation associated therewith in any way or manner from any and all damages, claims, causes of action or injuries, including but not limited to death and/or dismemberment, of whatever kind or character arising from, associated with or caused by participation in the Tournament, regardless of actions of gross negligence, joint negligence or concurrent negligence by any person or entity associated with the Tournament. Entrant stipulates, acknowledges and agrees that no legal action or suit may be brought against the Tournament or any party associated therewith for any reason. Dated this _____ day of ______________________, 2015. NAME (PRINT): ________________________________________________ ADDRESS: _____________________________________________________ E-MAIL:_______________________________________________________ PHONE: __________________ FAX: _________________________ SIGNATURE: ___________________________________________________ WE NEED SPONSORS!!! IF YOU CAN SPONSOR THIS EVENT, PLEASE SEND A CHECK PAYABLE TO THE H.A.P.L. TO J. NIEKAMP AT 1223 AUGUSTA, #31, HOUSTON, TEXAS 77057 26 2014 SALTWATER FISHING TOURNAMENT GRAND PRIZE DOVE, TEAL AND ALLIGATOR HUNT RESULTS Energy Land Resources, Inc. (Mr. Mickey Phelan, President) donated the Grand Door Prize for the 2014 HAPL Saltwater Fishing Tournament, being a Dove, Teal and Alligator Hunt held on September 19 and 20th, 2014. Steve Lewis with Rosetta Resources was the lucky winner and he brought his friend, Austin Danford with Oxy. We hunted the marsh between Winnie and High Island. While the Teal were not very cooperative, the Dove Hunting was fun and of course Steve bagged his first alligator. Congratulations Steve! Below is Steve Lewis with his Alligator. Hopefully, Energy Land Resources, Inc. will again be so kind as to donate another fine trip as they have done in the past two years. Please take a look at the 2015 Entry Form on the previous page for the HAPL Saltwater Fishing Tournament. This will be our 20th year for this Tournament and we expect it to be one of our best so far! Thanks to all our Sponsors and we hope folks enjoy this year’s event as they have in the past. Thanks, Jerry D. Niekamp Tournament Chairman 27 28 HAPL WELCOMES NEW MEMBERS Vadal Bolds - Associate Chevron U.S.A., Inc. 1400 Smith St. Houston, TX 77002 713-372-3488 [email protected] Wes Homeyer - Active Holland Services 1776 Yorktown, Ste. 301 Houston, TX 77056 713-255-5170 [email protected] Derek Shannon - Active EP Energy E&P Company, L.P. 1001 Louisiana Houston, TX 77002 713-997-3644 [email protected] Casey Burkett - Active Principle Energy 11000 Richmond Ave., Ste. 100 Houston, TX 77042 281-727-8477 [email protected] Christopher Hultman - Active Harold J. Anderson, Inc. 2200 Pakenham Dr. Chalmette, LA 70043 504-276-5858 [email protected] Charles Tracy - Active Transpetroleum, Inc. 351 CR 2094 Nacogdoches, TX 75965 936-205-4658 [email protected] Isidro Cantu - Associate Independent 9668 Westhiemer Rd., Ste. 200 Houston, TX 77063 713-202-4238 [email protected] Kimilia Jones - Active Chevron U.S.A., Inc. 1400 Smith St. Houston, TX 77002 713-372-1294 [email protected] John Wind - Active Percheron Energy 805 Ave. A. Wharton, TX 77488 979-533-9621 [email protected] Debbie Cosper - Active Diamond Road Energy, LLC 5003 Beech Fern Dr. Richmond, TX 77407 337-349-0224 [email protected] Damian Katz - Active Carrizo Oil & Gas 500 Dallas St., Ste. 2300 Houston, TX 77002 713-457-7065 [email protected] Jason Lewis - Associate Onshore Leasing Corp. TH 1412 17 St., Ste. 457 Bakersfield, CA 93301 805-358-4371 [email protected] Ryan D. Fitzpatrick - Active Stonegate Production Company 952 Echo Lane, Ste. 400 Houston, TX 77024 713-600-8420 [email protected] Melissa Kidwell - Associate JGC Energy Development 10370 Richmond Ave. Houston, TX 77042 832-255-2248 [email protected] Levi Greenly - Associate Carrizo Oil & Gas 500 Dallas St., Ste. 2300 Houston, TX 77002 713-457-7100 [email protected] Andrew Landgraf - Associate Oasis Petroleum 1001 Fannin, Ste. 1500 Houston, TX 77002 713-770-6435 [email protected] William Grundy - Active Carrizo Oil & Gas 500 Dallas St., Ste. 2300 Houston, TX 77002 713-457-7017 [email protected] Kelechi Nwabuisi - Associate Occidental Oil & Gas 5 Greenway Plaza Houston, TX 77007 713-215-7007 [email protected] 29 30 31 Lindsey Griffith Membership Desk/ Assistant Newsletter Editor Diane R. Snyder Executive Administrator/ Newsletter Editor HAPL 800 Bering, Suite 120 Houston, Texas 77057 713-622-6868 FAX: 713-622-3723 Email: [email protected] www.hapl.org Find us on LinkedIn & Facebook 32
