Exhibit 10(a)


                                 October 3, 2002

                                     AMENDED
                              LETTER LOAN AGREEMENT


The Beard Company
5600 N. May Avenue, Suite 320
Oklahoma City, Oklahoma 73112

Gentlemen:

This Amended Letter Loan Agreement supersedes the previous Amended Letter Loan
Agreement between the parties hereto dated February 28, 2002.

This Amended Letter Loan Agreement sets forth the terms and conditions under
which we have agreed to extend a revolving loan to you in the principal amount
of $3,000,000.00 (the "Loan").

1.  LENDER:        The William M. Beard and Lu Beard
                   1988 Charitable Unitrust (the "Unitrust").

2.  BORROWER:      The Beard Company.

3.  AMOUNT:        Such amounts as the Borrower may request from time to time
                   up to $3,000,000.00.  The Loan shall be evidenced by a
                   promissory note in the amount of $3,000,000.00 dated as of
                   today (the "Note").  The Borrower shall be permitted to
                   obtain advances, make prepayments, and obtain additional
                   advances, up to the amount of the Note.

4. INTEREST RATE:  A fixed rate of 10.00%.

5. REPAYMENT:      The outstanding principal balance (the "Indebtedness") plus
                   unpaid accrued interest shall be due and payable on the
                   earlier of (i) January 3. 2005, or (ii)within ten (10) days
                   after receipt by Borrower of the McElmo Dome Settlement.

6. COLLATERAL:     The Lender, together with certain Note Holders, have
                   previously filed a Deed of Trust, Assignment of Production,
                   and Financing Statement of record (a "Lien") on its working
                   and overriding royalty interests in the McElmo Dome Unit in
                   Montezuma and Dolores Counties of Colorado ("Interests").
                   The Borrower will not sell, transfer, convey or otherwise
                   dispose of any of the Interests, whether pursuant to a
                   single transaction or a series of transactions.

7. COVENANT:       Until the Indebtedness has been paid in full, the Borrower
                   will not sell, transfer, convey or otherwise dispose of, all
                   or a substantial portion of its assets now owned or hereafter
                   acquired, whether pursuant to a single transaction or a
                   series of transactions, and the Borrower will not merge or
                   consolidate with any person or entity or permit any such
                   merger or consolidation with the Borrower.  This paragraph
                   specifically excludes asset sales incurred in the normal
                   course of business.

8. EVENTS OF
   DEFAULT:        If any of the following conditions or events ("Events of
                   Default") shall occur and be continuing:

                   A. Failure of the Borrower to pay when due any amounts,
                      including principal or interest on the Note (whether at
                      the stated maturity, upon acceleration or otherwise).

                   B. Any Event of Default as specified in the Note

                   C. Any default or breach in the performance of any covenant,
                      obligation, representation, warranty or provision
                      contained in this Letter Loan Agreement or in the Note or
                      in any other note or obligation of Borrower to the
                      Unitrust.

                   D. The Borrower shall: (i) apply for or consent to the
                      appointment of a custodian, receiver, trustee or
                      liquidator of the Borrower or any of its properties,
                      (ii) admit in writing the inability to pay, or generally
                      fail to pay, its debts when they come due, (iii) make a
                      general assignment for the benefit of creditors, (iv)
                      commence any proceeding relating to the bankruptcy,
                      reorganization, liquidation, receivership, conservator-
                      ship, insolvency, readjustment of debt, dissolution or
                      liquidation of the Borrower, or if corporate action
                      should be taken by the Borrower for the purpose of
                      effecting any of the foregoing, (v) suffer any such
                      appointment or commencement of a proceeding as described
                      in clause (i) or (iv) of this paragraph, which
                      appointment or proceeding is not terminated or discharged
                      within 60 days, or (vi) become insolvent.

     THEN upon the occurrence of any Event of Default described in the foregoing
     paragraphs the unpaid principal amount of and accrued interest on the Loan
     shall automatically become immediately due and payable, without
     presentment, demand, protest or other requirements of any kind, all of
     which are hereby expressly waived by Borrower.

If the foregoing terms and conditions are acceptable to you, please acknowledge
your agreement by signing below and returning one copy of this Letter Loan
Agreement to us.

Sincerely,

LENDER:
THE WILLIAM M. BEARD AND LU BEARD
1988 CHARITABLE UNITRUST


WILLIAM M. BEARD                            LU BEARD
William M. Beard, Trustee                   Lu Beard, Trustee

Accepted effective this 3rd day of October, 2002.

BORROWER:
THE BEARD COMPANY


HERB MEE, JR.
Herb Mee, Jr., President