June 2007 Meeting Minutes
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The meeting started at 4:30pm at the Clay Madsen Rec Center in Round Rock. There were 15 total attendees. 

New members were identified and introduced:

Allen Updike

Nan Updike

Dean Colgrove

The Chapter failed to elect new officers during the May meeting at Malcom Long’s. The turnout for that meeting was very low and no one volunteered to accept any nominations. The few members and new persons that attended discussed options on the future of the Chapter. Several ideas were discussed, including dissolving or merging the Chapter.

Daniel Klepac started the June meeting by expressing his views about the importance of keeping the Chapter intact. The following is a letter he sent to the previous officers, which he read during the meeting:

Some of the comments made at the May meeting need to be addressed and I will give you my opinion on a few.


  1. The question of a viable chapter:  While it may be a concern, let us explore the purpose of a chapter.  For the GPAA, a chapter is a means of generating new paying clients.  There is nothing wrong with that, the GPAA is a for-profit business.  My view on a chapter is that its purpose is to bring people with a common interest together, share information, forge lifelong friendships, and to share our hobby with the public.  Since we do not depend on membership dues to operate, whether we have 5 core members or 50, the purpose is met.  I feel that a small group has its advantages due to the fact that landowners are more open to small groups on their property.  An example is the property near Enchanted Rock, the number of folks that we can bring out is 15.
  2. The Llano chapter has a better chance of gaining access to property: The Llano chapter is in the same boat as we are.  Most of their outings are held at the Oxford Ranch.  When our chapter was started we had two outings a year at Long’s.  The fact of the matter is there aren’t that many areas to prospect and we should count ourselves lucky that we have the sites that we do. Nothing stops our members from going to the Llano outings or becoming active members of that chapter.  Disbanding our chapter reduces our chances of meeting landowners east of IH35 and thus reduces our chances of prospecting those areas.
  3. People losing interest:  The cold hard fact is we cannot control people’s interest in a subject.  This is not just a problem for us but for almost every hobby available.  While on the surface prospecting looks like good clean fun, after trying it for a while people find out that it is hard, dirty work with little reward.  Those that enjoy it remain and those that determined it did not fill their needs move on to new adventures.  I built and flew model airplanes for 10 plus years and have approximately 2000.00 in equipment sitting in boxes…my interests changed and I moved on.


As for the next set of issues, I have mixed feelings about expressing my opinions but feel strongly enough about them they need to be said.  When we look at the big picture rather than just the individual parts, we’re better able to make decisions based on fact verses emotions and wants.  As such, I will supply sources of information to verify my comments and to add to the information available. 


Raffles: Charitable Raffles

What does the law permit?

The Charitable Raffle Enabling Act, effective January 1, 1990, permits "qualified organizations" to hold up to two raffles per calendar year, with certain specified restrictions.

What is a "qualified organization"?

In general, a qualified organization is:

a.       An association organized primarily for religious purposes that has been in existence in Texas for at least 10 years;

b.       A volunteer emergency medical service that does not pay its members other than nominal compensation;

c.        A volunteer fire department that operates fire fighting equipment and does not pay its members other than nominal compensation; or

d.       A nonprofit organization that has existed for at least three preceding years and is exempt from federal income tax under Section 501(c), Internal Revenue Code; does not distribute any of its income to its members, officers or governing body; does not devote a substantial part of its activities to attempting to influence legislation; and does not participate in any political campaign.

The language of the law is very technical. If you are considering holding a raffle to benefit an organization, you should check the statute to be sure you qualify.

What prizes may be offered?

An organization may offer any prize except money. If the raffle organizers offer a prize which they have purchased or have given other consideration for, the value of the prize may not exceed $50,000, unless the prize is a residential dwelling, in which case the value may not exceed $250,000. There is no value limit on prizes donated to the organization. Texas lottery tickets may be purchased and offered as prizes, even though the tickets' payoff may exceed $50,000. The organization must have each raffle prize in its possession or ownership, or must post a bond for the full amount of the value of the prize with the county clerk of the county where the raffle will be held.

Is an organization required to register with the State before conducting a raffle?


What are the restrictions on how the raffle may be conducted?

  • A qualified organization may hold only two raffles per year and only one raffle at a time.
  • Raffle tickets may not be advertised state wide or through paid advertisements. Each raffle ticket must state the name or address of the organization holding the raffle, or (if no organization address) the address of an officer of the organization, the price of the ticket, a general description of each prize to be awarded that has a value of over $10, and the date on which the raffle prize or prizes will be awarded.
  • A prize may not be money, which is defined as coins, paper currency, or a negotiable instrument that represents and is readily convertible to coins or paper currency.
  • Only members of the organization or persons authorized by the organization, or student organizations recognized by institutions of higher education selling on behalf of the institution, may sell tickets.
  • No one may be compensated directly or indirectly for organizing or conducting a raffle, or for selling raffle tickets.

How may the proceeds from ticket sales be used?

Proceeds from ticket sales must be used only for the charitable purposes of the qualified organization.

Are there any penalties for conducting or participating in an unauthorized raffle?

Yes. Only raffles held according to the terms of the Raffle Enabling Act are authorized raffles. An unauthorized raffle is considered gambling under the Texas Penal Code. Conducting such a raffle is a Class A misdemeanor. Participating in an unauthorized raffle is a Class C misdemeanor.

What law enforcement authorities may stop an unauthorized raffle?

A county attorney, district attorney or the attorney general may bring an action in state court to stop a violation or potential violation of the Charitable Raffle Enabling Act.

Where can I get more information on the requirements for holding a raffle?

The law is Chapter 2002, Occupations Code, Texas Codes Annotated. If you have specific questions about the law, you should consult your attorney.

Contact Information

By Us Mail:
Office of the Attorney General
Consumer protection Division/010
P.O. Box 12548
Austin, TX 78711-2548

By Telephone
Main agency switchboard

I think that pretty much covers holding raffles.  The chance of getting caught is slim, but so is getting a ticket for no seat belt. 

Not having enough places to prospect: Let’s face it, Texas does not have the geological history for deposits of gold like the Rocky Mountain states and California.  Our history is that of material filling an inland sea, crossing the Ouachita Mountains, and then continuing the filling process to where our present coast is.  As for mountain building in which most gold deposits are found, the remnants of the Ouachita Mountains are approximately 40,000 feet below the Balcones Fault Line. (Geologic Wonders of West Texas, Donald McGookey)  The gold we find is more than likely the result of the fill process which brought material from the west.  The advantage of the Llano Uplift is that millions of years of deposits have been removed to expose the base rocks.  This also means that there are other areas which could hold gold in amounts that a recreational miner might find interesting.  As a chapter, we have the means to gain access to property as long as we work as a team and not as individuals looking out for themselves.  What I mean is all members should look around for access, not just a couple.  While I see no problem with someone having a spot for themselves, but until new areas are opened up to the chapter we’ll be stuck with Long’s.

GPAA doing something for Texas: While at times I may sound anti GPAA, I am not.  I was a member before most of our current members and was very pro GPAA.  My opinion changed when I started inquiring as to the plans for Texas such as:

  1. Hudkins Property-“Tell us about properties, the GPAA may lease them”.  Couldn’t even get them to talk to the land owner.
  2. GPAA 2005 show-“What will it take to get the GPAA to do something for Texas?”  Answer-“Get us 500 more members.” (Alaska Trip Coordinator)
  3. GPAA 2006 show-Opinions of many voiced after hours.  Tom Massey simply strolled by without so much as a word.
  4. GPAA 2006 show-“GPAA has been bailed out twice by the Outdoor Channel.”  “For every new member, there is a loss of a member” (Walt Eason)

It is very apparent that we are very low on their list of priorities.  As a business, the decisions made are based on profit.  We do not belong to a club; the GPAA is an association in which you pay for the privilege to use their claims.  This means that if we are to succeed, we must do so on our own and not expect any help from the GPAA. I am not very excited about forming a private club because we lose a method of exposure.  But since I am not allowed to vote for a change at the national level, I allow my displeasure to be heard by the lack of my money in their account.

Lack of interest in taking an officers position: As I heard at the May meeting, many people have opinions on how to improve the chapter, but when we asked for volunteers to fill officers positions the response was “I’m too busy”.  We’re all busy with our lives, especially if children are involved.  At the same time I feel very strongly about our chapter.  I would like to make this suggestion:  If there isn’t anyone interested in stepping up, we continue with the present officers and move forward.

We would have more members if we had meetings:  Our meeting rosters will indicate a steady decline in attendance way before we ceased having raffles or meetings.  As for having a meeting and building equipment, I’m all for it.  All we need is a shop with tools, suggestions for builds, and people to commit.

During Daniel’s reading of his letter, several members added their thoughts about the Chapter.

Grady Wallace spoke about the formation of the Chapter in 2002. There were 75 attendees at the first meeting. Even though no gold was found at times, prospecting and having outings was fun and there was great satisfaction from the getting together of everyone. He feels that future meetings need to be opened up to more topics to keep the meetings fresh. He also expressed concern about the Chapter’s assets and what would happen to them if the Chapter dissolved.

Ron Pottberg thanked Grady for starting the first Chapter in Texas. He also feels the Round Rock Chapter is partially responsible for the formation of the 7 other chapters in Texas. The GPAA magazine listing of chapter contacts continually brings in new members. He has prospected on 10 claims from the mining guide and has found gold on all of them. He believes the GPAA is a good organization to be involved with.

Kevin Green had concerns about the Chapter contract. This contract has to be signed by all newly elected officers and all officers are required to be current GPAA members. Daniel reminds the group that our Chapter doesn’t always follow the GPAA rules. For example, only GPAA members can participate in outings. The Round Rock Chapter has decided to allow anyone to attend its outings. Kevin also informed the group that there are 125 people signed up for the Chapter’s email announcements. He recently renewed his membership to the GPAA for $30. You have to ask for the lower price, otherwise the GPAA will charge $67. The lower price does not include the mining guide or admittance to any GPAA sponsored outings.

Dean Colgrove spoke highly of the GPAA. He also made a motion to elect new officers. Daniel seconded.

Kevin Green was nominated to remain secretary. He accepted.

Roland Schneider was nominated to be Treasurer. He accepted.

Allen Updike was nominated to be Vice President. He accepted.

Daniel Klepac was nominated to remain President. He accepted.

Gerry Davison was absent. He will likely remain as the Claims Chairman.

The meeting adjourned at 6 pm.