UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    Form 10-Q



[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 For the period ended March 31, 2002

                                       or

[ ]  Transition  Report  Pursuant  to Section  13 or 15(d) of the  Securities
     Exchange Act of 1934



                         Commission File Number 1-12396


                                THE BEARD COMPANY
             (Exact name of registrant as specified in its charter)




          Oklahoma                                           73-0970298
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                           Identification No.)


                           Enterprise Plaza, Suite 320
                              5600 North May Avenue
                            Oklahoma City, Oklahoma       73112
               (Address of principal executive offices) (Zip Code)



Registrant's telephone number, including area code:  (405) 842-2333

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate  the  number of  shares  outstanding  of each of the  registrant's
classes of common stock as of April 30, 2002.


                   Common Stock $.001333 par value - 1,828,845
<PAGE>
                                THE BEARD COMPANY

                                      INDEX


PART I. FINANCIAL INFORMATION                                               Page
-----------------------------                                               ----

Item 1.   Financial Statements................................................3

    Balance Sheets - March 31, 2002 (Unaudited) and
       December 31, 2001......................................................3

    Statements of Operations - Three Months
       ended March 31, 2002 and 2001 (Unaudited)..............................4

    Statements of Shareholders' Equity - Year ended December 31, 2001
       and Three Months ended March 31, 2002 (Unaudited)......................5

    Statements of Cash Flows - Three Months ended
       March 31, 2002 and 2001 (Unaudited)....................................6

    Notes to Financial Statements (Unaudited).................................8

Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of Operations......................15

Item 3.   Quantitative and Qualitative Disclosures About Market Risk.........21


PART II.  OTHER INFORMATION
---------------------------

Item 2.   Changes in Securities..............................................21

Item 6.   Exhibits and Reports on Form 8-K...................................21

Signatures...................................................................25

<PAGE>
<TABLE>
                                   THE BEARD COMPANY AND SUBSIDIARIES
                                             Balance Sheets
<CAPTION>
                                                                         March 31,       December 31,
                                      Assets                               2002              2001
                                      ------                         ----------------  ----------------
<S>                                                                  <C>               <C>
Current assets:
     Cash and cash equivalents                                       $        37,000   $        55,000
     Accounts receivable, less allowance for doubtful
        receivables of $107,000 in 2002 and 2001                             123,000           175,000
     Inventory                                                                20,000            76,000
     Prepaid expenses and other assets                                        48,000            56,000
     Current portion of notes receivable                                     182,000           180,000
                                                                     ----------------  ----------------
              Total current assets                                           410,000           542,000
                                                                     ----------------  ----------------

Notes receivable                                                              90,000           108,000

Investments and other assets                                                 751,000           652,000

Property, plant and equipment, at cost                                     4,831,000         4,894,000
     Less accumulated depreciation, depletion and amortization             2,156,000         2,184,000
                                                                     ----------------  ----------------
              Net property, plant and equipment                            2,675,000         2,710,000
                                                                     ----------------  ----------------

Intangible assets, at cost                                                    79,000            48,000
     Less accumulated amortization                                             2,000             2,000
                                                                     ----------------  ----------------
              Net intangible assets                                           77,000            46,000
                                                                     ----------------  ----------------

                                                                     $     4,003,000   $     4,058,000
                                                                     ================  ================


                            Liabilities and Shareholders' Equity (Deficiency)
                            -------------------------------------------------

Current liabilities:
     Trade accounts payable                                          $       166,000   $       156,000
     Accrued expenses                                                        375,000           429,000
     Current maturities of long-term debt                                    308,000           307,000
                                                                     ----------------  ----------------
              Total current liabilities                                      849,000           892,000
                                                                     ----------------  ----------------

Long-term debt less current maturities                                        17,000            19,000

Long-term debt - related entities                                          2,922,000         2,494,000

Other long-term liabilities                                                  108,000           108,000

Redeemable preferred stock of $100 stated value;
     5,000,0000 sharesr authorized; 27,838 shares issued
     and outstanding in 2001 and 2000 (note 4)                               889,000           889,000

Common shareholders' equity (deficiency):
     Common stock of $.001333 par value per share; 7,500,000
        shares authorized; 2,123,898 shares issued
        and outstanding in 2001 and 2000                                       3,000             3,000
     Capital in excess of par value                                       38,104,000        38,081,000
     Accumulated deficit                                                 (37,029,000)      (36,568,000)
     Accumulated other comprehensive loss                                    (14,000)          (14,000)
     Treasury stock, 295,053, at cost, in 2001 and 2000                   (1,846,000)       (1,846,000)
                                                                     ----------------  ----------------
              Total common shareholders' equity (deficiency)                (782,000)         (344,000)
                                                                     ----------------  ----------------

Commitments and contingencies (note 7)
                                                                     $     4,003,000   $     4,058,000
                                                                     ================  ================
</TABLE>

See accompanying notes to financial statements.

<TABLE>
                                THE BEARD COMPANY AND SUBSIDIARIES
                                     Statements of Operations
                                           (Unaudited)
<CAPTION>
                                                                    For the Three Months Ended
                                                                  ------------------------------
                                                                    March 31,        March 31,
                                                                       2002            2001
                                                                  --------------   -------------
<S>                                                               <C>              <C>
Revenues:
    Coal reclamation                                              $       1,000    $     52,000
    Carbon dioxide                                                       86,000         126,000
    China                                                                     -               -
    e-Commerce                                                                -               -
    Other                                                                 3,000           5,000
                                                                  --------------   -------------
                                                                         90,000         183,000
                                                                  --------------   -------------
Expenses:
    Coal reclamation                                                    119,000         129,000
    Carbon dioxide                                                       31,000          24,000
    China                                                                     -               -
    e-Commerce                                                                -               -
    Selling, general and administrative                                 253,000         290,000
    Depreciation, depletion and amortization                             23,000          23,000
    Other                                                                15,000          13,000
                                                                  --------------   -------------
                                                                        441,000         479,000
                                                                  --------------   -------------
Operating profit (loss):
    Coal reclamation                                                   (147,000)       (118,000)
    Carbon dioxide                                                       47,000          94,000
    China                                                                     -               -
    e-Commerce                                                          (36,000)        (51,000)
    Other, primarily corporate                                         (215,000)       (221,000)
                                                                  --------------   -------------
                                                                       (351,000)       (296,000)
Other income (expense):
    Interest income                                                      27,000          41,000
    Interest expense                                                    (67,000)        (39,000)
    Equity in operations of unconsolidated affiliates                   (31,000)        (57,000)
    Gain on sale of assets                                                9,000          17,000
                                                                  --------------   -------------

Loss from continuing operations before income taxes                    (413,000)       (334,000)

Income tax benefit (expense) (note 6)                                         -          60,000

                                                                  --------------   -------------
Loss from continuing operations                                        (413,000)       (274,000)

Loss from discontinued operations (note 3)                              (48,000)       (310,000)

                                                                  --------------   -------------
Net loss                                                          $    (461,000)   $   (584,000)
                                                                  ==============   =============

Net loss per average common share outstanding:
    Basic and diluted:
       Loss from continuing operations                            $       (0.22)   $      (0.15)
       Loss from discontinued operations                                  (0.03)          (0.17)
                                                                  --------------   -------------
       Net loss                                                   $       (0.25)   $      (0.32)
                                                                  ==============   =============


Weighted average common shares outstanding - basic and diluted        1,829,000       1,829,000
                                                                  ==============   =============
</TABLE>

See accompanying notes to financial statements.

<TABLE>
                                                 THE BEARD COMPANY AND SUBSIDIARIES
                                           Statements of Shareholders' Equity (Deficiency)
<CAPTION>
                                                                                        Accumulated                   Total
                                                            Capital in                    Other                       Common
                                                   Common   Excess of    Accumulated   Comprehensive    Treasury    Shareholders'
                                                   Stock    Par Value       Deficit       Income         Stock   Equity (Deficiency)
                                                 --------   ---------    ------------  -------------  ---------- -------------------

<S>                                              <C>       <C>           <C>            <C>         <C>             <C>
Balance, December 31, 2000                       $  3,000  $37,986,000   $(34,247,000)  $(13,000)   $( 1,846,000)   $    1,883,000

  Net loss                                              -            -     (2,321,000)         -               -        (2,321,000)
  Comprehensive income:
    Foreign currency translation
    adjustment                                          -            -              -     (1,000)              -            (1,000)

                                                                                                                    --------------
  Comprehensive loss                                    -            -              -          -               -        (2,322,000)
                                                                                                                    --------------
  Reservation of shares pursuant to
    deferred compensation plan                          -       95,000              -          -               -            95,000
                                               ----------  -----------   ------------   --------    ------------    --------------
Balance, December 31, 2001                          3,000   38,081,000   $(36,568,000)   (14,000)    ( 1,846,000)         (344,000)

  Net loss, three months ended March
  31, 2002 (unaudited)                                  -            -       (461,000)         -               -          (461,000)

  Comprehensive income:
    Foreign currency translation
    adjustment (unaudited)                              -            -              -          -               -                 -

                                                                                                                    --------------
  Comprehensive loss (unaudited)                        -            -              -          -               -          (461,000)
                                                                                                                    --------------
  Reservation of shares pursuant to
    deferred compensation plan
    (unaudited)                                         -       23,000              -          -               -            23,000
                                               ----------  -----------   ------------   --------    ------------    --------------
Balance, March 31, 2002 (unaudited)            $    3,000  $38,104,000   $(37,029,000)  $(14,000)   $( 1,846,000)   $(     782,000)
                                               ==========  ===========   ============   ========    ============    ==============
</TABLE>

See accompanying notes to financial statements.

<TABLE>
                                   THE BEARD COMPANY AND SUBSIDIARIES
                                        Statements of Cash Flows
                                              (Unaudited)
<CAPTION>
                                                                          For the Three Months Ended
                                                                        ------------------------------
                                                                        March 31, 2002  March 31, 2001
                                                                        --------------  --------------
<S>                                                                    <C>              <C>
Operating activities:
     Cash received from customers                                      $    226,000     $    245,000
     Cash paid to suppliers and employees                                  (550,000)        (574,000)
     Interest received                                                       22,000           20,000
     Interest paid                                                           (6,000)         (84,000)
     Taxes (paid) refunded                                                        -           60,000
                                                                       -------------    -------------
          Net cash used in operating activities                            (308,000)        (333,000)
                                                                       -------------    -------------
Investing activities:
     Acquisition of property, plant and equipment                            (5,000)          (8,000)
     Acquisition of intangibles                                             (11,000)               -
     Proceeds from sale of assets                                            62,000           17,000
     Investment in and advances to fifty percent-owned
        subsidiary in Mexico                                                 (4,000)        (107,000)
     Investment in and advances to fifty percent-owned
        subsidiary in China                                                (169,000)               -
     Advances for notes receivable                                           (2,000)         (22,000)
     Payments on notes receivable                                            20,000           89,000
     Other                                                                   36,000           13,000
                                                                       -------------    -------------
          Net cash used in investing activities                             (73,000)         (18,000)
                                                                       -------------    -------------
Financing activities:
     Proceeds from term notes                                               370,000          401,000
     Payments on line of credit and term notes                               (7,000)          (5,000)
                                                                       -------------    -------------
          Net cash provided by financing activities                         363,000          396,000
                                                                       -------------    -------------
Net increase (decrease) in cash and cash equivalents                        (18,000)          45,000

Cash and cash equivalents at beginning of period                             55,000           31,000
                                                                       -------------    -------------
Cash and cash equivalents at end of period                             $     37,000     $     76,000
                                                                       =============    =============
</TABLE>

Continued

<TABLE>
                                   THE BEARD COMPANY AND SUBSIDIARIES
                                        Statements of Cash Flows
                                               (Unaudited)

Reconciliation of Net Loss to Net Cash Used in Operating Activities
<CAPTION>
                                                                          For the Three Months Ended
                                                                       --------------------------------
                                                                       March 31, 2002    March 31, 2001
                                                                       --------------    --------------
<S>                                                                    <C>               <C>
Net loss                                                               $    (461,000)    $    (584,000)
Adjustments to reconcile net loss to net cash
 used in operating activities:
     Depreciation, depletion and amortization                                 24,000            29,000
     Gain on sale of assets                                                  (47,000)          (17,000)
     Equity in operations of unconsolidated affiliates                        36,000           296,000
     Net cash used by discontinued operations offsetting
       accrued impairment loss                                                (4,000)          (31,000)
     (Increase) decrease in accounts receivable, prepaid expenses
        other current assets                                                  28,000            (5,000)
     (Increase) decrease in inventories                                       56,000            (8,000)
     Increase (decrease) in accounts payable, accrued
        expenses and other liabilities                                        60,000           (13,000)
                                                                       --------------    --------------
     Net cash used in operating activities                             $    (308,000)    $    (333,000)
                                                                       ==============    ==============
</TABLE>

See accompanying notes to financial statements.


                       THE BEARD COMPANY AND SUBSIDIARIES
                          Notes to Financial Statements

                             March 31, 2002 and 2001
                                   (Unaudited)

(1)  Summary of Significant Accounting Policies
---  ------------------------------------------
     Basis of Presentation
     ---------------------
     The accompanying  financial statements and notes thereto have been prepared
     pursuant  to the rules  and  regulations  of the  Securities  and  Exchange
     Commission.   Accordingly,   certain   disclosures   normally  prepared  in
     accordance  with  accounting  principles  generally  accepted in the United
     States have been omitted.  The accompanying  financial statements and notes
     thereto  should  be read  in  conjunction  with  the  audited  consolidated
     financial statements and notes thereto included in The Beard Company's 2001
     annual report on Form 10-K.

     The  accompanying  financial  statements  include the accounts of The Beard
     Company and its wholly and  majority-owned  subsidiaries in which The Beard
     Company has a  controlling  financial  interest ("Beard" or the "Company").
     Subdidiaries  and  investees in which Beard does not  exercise  control are
     accounted  for  using  the  equity  method.  All  significant  intercompany
     transactions have been eliminated in the accompanying financial statements.

     The  financial  information  included  herein is unaudited;  however,  such
     information reflects solely normal recurring  adjustments which are, in the
     opinion of management, necessary for a fair presentation of the results for
     the interim periods presented.

     The results of operations for the three-month  period ended March 31, 2002,
     are not  necessarily  indicative of the results to be expected for the full
     year.

     The  Company's  current  significant  operations  are within the  following
     segments: (1) the Coal Reclamation ("Coal") Segment, (2) the Carbon Dioxide
     ("CO2") Segment,  (3) the China ("China")  Segment,  and (4) the e-Commerce
     ("e-Commerce") Segment.

     The Coal  Segment is in the business of  operating  coal fines  reclamation
     facilities  in the U.S. and provides  slurry pond core  drilling  services,
     fine coal laboratory  analytical services and consulting services.  The CO2
     Segment  consists  of the  production  of CO2 gas.  The  China  Segment  is
     pursuing environmental  opportunities in China focusing on the installation
     and construction of facilities which utilize the patented  AirLance Compost
     Systems(TM)  composting  technology.  The e-Commerce  Segment consists of a
     71%-owned  subsidiary  which is  pursuing  the  development  of a virtually
     secure payment system to be used exclusively for Internet transactions. Its
     current  focus is to  develop  licensing  arrangements  and other fee based
     arrangements  with companies  implementing  technology in conflict with its
     intellectual property.

     As  discussed  in note 3: (1) In 1999,  the  Company's  Board of  Directors
     adopted a formal  plan to  discontinue  its  interstate  travel  facilities
     business (the "ITF" Segment); (2) in 1999 the Management Committee of North
     American Brine Resources  ("NABR")  adopted a plan to discontinue its brine
     extraction/iodine  manufacturing  business  which  comprised  the Company's
     ("BE/IM")  Segment;  (3) in May  2001 the  fixed  assets  of the  50%-owned
     company (accounted for as an equity investment) involved in the Natural Gas
     Well  Servicing  ("WS")  Segment were sold and in August 2001,  the Company
     ceased pursuing  opportunities in Mexico and the segment was  discontinued;
     and (4) in March 2001 the Company ceased providing financial support to its
     environmental  remediation  ("ER")  subsidiary,   its  exclusive  marketing
     license was subsequently cancelled, and the ER Segment was discontinued.

     Investments
     -----------
     The Company  owns a 50%  interest in  ABT-Beard,  L.L.C.  ("ABT-Beard"),  a
     company  involved  in  pursuing   environmental   opportunities  in  China.
     ABT-Beard  had no  revenues  for either the first  quarter of 2002 or 2001.
     ABT-Beard incurred losses of $146,000 and $176,000 for the first quarter of
     2002 and 2001, respectively.

     Impact of Recently Issued Accounting Standards Not Yet Adopted
     --------------------------------------------------------------
     In June 2001, the Financial  Accounting  Standards  Board  ("FASB")  issued
     Statement No. 142, Goodwill and Other Intangible Assets.  Statement No. 142
     applies to intangible assets acquired individually or with a group of other
     assets at acquisition and subsequent to acquisition. According to Statement
     No. 142,  intangible  assets are to be recorded at fair value and  goodwill
     will not be amortized, but assessed annually for impairment.

     In September 2001, the FASB issued Statement No. 143,  Accounting for Asset
     Retirement   Obligations.   Statement   No.  143  applies  to  the  initial
     measurement and subsequent  accounting for obligations  associated with the
     sale, abandonment, or other type of disposal of long-lived tangible assets.
     The statement  requires that asset retirement  obligations be recognized at
     fair value when the obligation is incurred.

     In October  2001,  the FASB issued  Statement No. 144,  Accounting  for the
     Impairment  or Disposal of  Long-Lived  Assets.  The assets  covered by the
     statement  include  those to be held and used or to be disposed of, such as
     assets under capital leases of lessees,  assets subject to operating leases
     of lessors,  and prepaid assets.  This statement  provides guidance for the
     recognition  and  measurement  of an  impairment  loss for certain types of
     long-lived assets and expands the scope of discontinued operations.

     The Company has adopted FASB  Statements No. 142 and 144 effective  January
     1, 2002 for the fiscal year ended  December  31, 2002 and the impact is not
     material.  The  Company  will be  required  to  adopt  FASB  Statement  143
     effective  January 1, 2003 for the fiscal year ended December 31, 2003. The
     Company has not  evaluated  the effects of Statement  No. 143, but does not
     believe that adoption of this  accounting  standard will have a significant
     effect on the financial position or results of operations of the Company.

     Reclassifications
     -----------------
     Certain  2001  balances  have  been  reclassified  to  conform  to the 2002
     presentation.  As described in note 3, the Company  discontinued two of its
     segments.   As  a  result  the  2001   statement  of  operations  has  been
     reclassified to reflect the two segments' operations as discontinued.

(2)  Liquidity and Ability to Fund Operations
---  ----------------------------------------

     As a result of the requirement to fund operating losses and the decision to
     pursue  other  investment  opportunities,   the  Company's  cash  and  cash
     equivalents decreased $39,000 at March 31, 2002 compared to March 31, 2001.
     To mitigate potential liquidity problems, the Company obtained financing of
     $1.8  million in 2000,  including  $1.5  million  from an  affiliate of the
     Company's chairman. Lines from related parties were increased to a total of
     $2,350,000  in  September  of 2001,  and  were  subsequently  increased  to
     $2,725,000 in February of 2002. Of this amount,  $2,625,000 is secured by a
     pledge of approximately 89% of the Company's working and overriding royalty
     interests  in the  McElmo  Dome Unit.  The sale of the fixed  assets of the
     Company's  50%-owned  investee  in the well  testing  business  in May 2001
     resulted  in the  distribution  of  $907,000 of cash to the Company and the
     reclassification  of a  portion  of a note  receivable  from  long-term  to
     current. Despite these inflows, working capital deteriorated $89,000 during
     the first quarter of 2002.

     The  Company is focusing  on  replacing  its Coal  Segment's  revenues  and
     currently has four major projects in various stages of development,  all of
     which,  subject to arranging  necessary  financing,  are expected to mature
     into operating  projects during 2002 and 2003. In each case core holes have
     been  drilled  and  sample  analyses  have been  completed  with  favorable
     results.  The  projects  are in four  different  states  and  involve  four
     different  parties.  On three of the projects we are  negotiating  with the
     pond owners  concerning the installation of a preparation  plant to recover
     clean coal. The fourth  project  involves the transfer of a large amount of
     non-recoverable slurry to a new disposal area, and may ultimately result in
     the  installation of a preparation  plant. The first three projects require
     the  arrangement  of  necessary  financing;  the  fourth  would  require no
     financing.  Negotiations are in progress with a third party to form a joint
     venture or limited liability company that would provide the initial working
     capital  and  guarantee  the  necessary  equipment  financing  on the three
     projects.  Although the timing of the four projects is uncertain,  they are
     all considered to have a high probability of activity, subject to obtaining
     the necessary financing on the three. However, no definitive contracts have
     as yet been signed,  and there is no assurance that the required  financing
     will be obtained or that any or all of the projects will materialize.

     After more than three years of  development  activity by the China Segment,
     it appears that its efforts are finally starting to bear fruit. The segment
     has signed contracts and formed  Cooperative Joint Ventures  ("CJV's") with
     various Chinese  partners which call for the  construction of three compost
     manufacturing  facilities  in which the Company  will own an  interest  and
     receive an operating  fee. The initial  plant,  located at Baoding in Hebei
     Province,  broke ground in March of 2001.  Construction  was delayed due to
     cold  weather,  but is targeted to resume in the spring of 2002.  The first
     installment  (US  $61,571,  net  of tax of  approximately  $10,000)  of the
     fabrication  license  fee for this plant was  received in December of 2001,
     with the next installment  anticipated this summer. A second plant, located
     at Qihe City in Shandong Province,  is also targeted to resume construction
     in the spring of 2002. The third CJV, which calls for the construction of a
     plant  in the  City of  Handan,  is on  indefinite  hold.  The  segment  is
     currently pursuing 13 other projects, seven of which are considered to have
     a high  probability  for activity.  Two of these  projects are in the final
     stages of contract  negotiation,  with project construction slated to start
     within the next 90 days. In the event these projects materialize they would
     result  in  contracts  in  which  the  segment  would  receive  substantial
     front-end  fees with no equity  interest.  If the  plants  currently  under
     construction   progress  on  schedule,   they  are  projected  to  generate
     fabrication  license fees,  management fees and  installation  fees in 2002
     which will more than cover the segment's  projected overhead as well as its
     required injections of registered capital for the projects during the year.

     Key to the Company's liquidity is the anticipated  settlement of a lawsuit,
     in which the Company is a Plaintiff, which has been in progress since 1996.
     A Settlement  Agreement  was signed by the parties in September of 2001. On
     May 6, 2002,  the federal  judge issued the Final  Judgment  approving  the
     Settlement  and ordered that a settlement  fund of $50.4 million in cash be
     established to settle the class action lawsuit. Objectors have 30 days from
     May 6 to  appeal.  In  companion  rulings  on the same date the Judge  also
     approved the allocation of settlement  funds among the class members in the
     lawsuit.  Distribution  of the  proceeds  will be delayed  until all appeal
     periods have run. The Company anticipates its share of the proceeds will be
     in excess of $3.5 million.  Distribution of the contemplated  proceeds will
     have a significant impact upon the Company's  liquidity.  Although there is
     the  possibility  that appeals could delay the Settlement or that objecting
     parties could ultimately cause the Settlement to be overturned, the Company
     believes it is unlikely that the Settlement will be overturned.

     To further bolster  working  capital,  the Company is currently  pursuing a
     private placement of $1,200,000 of 10% subordinated notes due September 30,
     2003,  with  warrants to purchase  up to 285,000  shares of Company  common
     stock,  to "bridge the gap" until the settlement  funds are  distributed or
     until the anticipated  Coal and China projects  achieve positive cash flow.
     As of May 13,  2002,  the Company had closed on the sale of $455,000 of the
     Notes,  and  had  received  verbal  commitments  for  the  purchase  of  an
     additional  $625,000 of Notes which are  expected to close  within the next
     few days. A related party  purchased  $200,000 of this total.  In addition,
     the Company  expects to generate cash from the disposition of the remaining
     assets from the  discontinued  ITF,  BE/IM and WS Segments and from the pay
     down of notes  receivable,  and can sell  certain  other assets to generate
     cash if necessary.

     The  Company  believes  that  the cash  generated  from  the  private  debt
     placement  currently in progress,  coupled with the cash generated from the
     sale of  assets,  will be more than  adequate  to  enable  the  Company  to
     continue  operations  until (i) the settlement  funds have been received or
     (ii) the operations of the projects under development in the Coal and China
     Segments  have come on stream and the Company is  generating  positive cash
     flow.

(3)  Discontinued Operations
---  -----------------------
     ITF Segment
     In  1999  the  Company's  Board  of  Directors  adopted  a  formal  plan to
     discontinue its interstate travel facilities ("ITF") Segment and recorded a
     $1,603,000 estimated loss for the discontinuance in 1998. ITF disposed of a
     majority  of  its  assets  in  1999,   retaining  two  convenience   stores
     ("C-stores"),  including  their  equipment and inventory,  and Beard became
     100% owner of ITF.

     Beard  recorded an additional  $420,000 loss in 2000;  $60,000  represented
     operating  losses expected to be incurred by the  discontinued  ITF Segment
     prior to the anticipated  disposal date of the remaining  assets;  $360,000
     represented an additional  reduction in the estimated  realizable  value of
     the remaining  C-stores and related  assets as of December 31, 2000.  ITF's
     revenues and actual operating losses were $7,000 and $31,000, respectively,
     for the three months ended March 31, 2001.  The actual losses for the three
     months ended March 31, 2001 were charged against the loss accrual  recorded
     in the fourth quarter of 2000.

     In December 2001, Beard recorded an additional  $100,000  impairment in the
     carrying  value of the  facilities  and $14,000 for  anticipated  operating
     losses for the period from December 31, 2001 through the expected  disposal
     date of the remaining assets. ITF recorded no revenues for the three months
     ended  March 31,  2002 and  incurred  $4,000 of losses for the same  period
     which were charged against the loss accrual  recorded in 2001.  Included in
     the losses was a $2,000 gain on the sale of equipment.

     As of March 31, 2002,  the  significant  assets  related to the ITF Segment
     consisted  primarily of the two remaining  C-stores and other assets with a
     total  recorded  value of  $409,000.  The  significant  liabilities  of the
     segment  consisted of trade accounts payable and accrued expenses  totaling
     $14,000.  Beard is actively  seeking  opportunities  to sell the  remaining
     C-stores and expects them to be sold by December 31, 2002.

     BE/IM Segment
     In 1999 the Management Committee of North American Brine Resources ("NABR")
     adopted a formal  plan to  discontinue  the  business  and  dispose  of its
     assets.  Beard had a 40%  ownership in NABR,  which was accounted for under
     the equity method.  As a result,  Beard's share of NABR's operating results
     have  been  reported  as  discontinued  for all  periods  presented  in the
     accompanying  statements of operations.  The joint venture was dissolved in
     September 2000 and the Japanese partners received their final  distribution
     of cash in December 2000, with the Company taking over the remaining assets
     and liabilities.

     In 1999 Beard  recorded a $540,000  loss,  which  represented  its share of
     NABR's $1,350,000  estimated loss from the  discontinuation  of operations.
     NABR's loss included $572,000 of anticipated operating losses through April
     2000 (the date  operations  ceased  for the larger of its two  plants)  and
     costs of ceasing  operations.  NABR's  revenues  for the smaller of the two
     plants were  $77,000 and none for the three months ended March 31, 2002 and
     2001,  respectively.  NABR's  operating  losses for the three  months ended
     March 31, 2002 and 2001 were  $37,000 and $24,000,  respectively,  and were
     not anticipated in the loss accruals  recorded in 1999. NABR charged $2,000
     and  $31,000  for  the  three   months  ended  March  31,  2002  and  2001,
     respectively,  against the accrual for anticipated  expenses related to the
     shutdown of the larger of its two plants.

     As of March 31, 2002, the significant  assets related to NABR's  operations
     consisted   primarily  of  equipment  and  inventory   with  estimated  net
     realizable  values of $68,000 and $20,000,  respectively.  The  significant
     liabilities  related to NABR's operations  consisted  primarily of accounts
     payable  of  $15,000  and  accrued  expenses  related  to the  shutdown  of
     operations   totaling   $151,000.   The   Company  is   actively   pursuing
     opportunities  to sell  NABR's  assets and expects  the  disposition  to be
     completed by December 31, 2002.

     WS Segment

     In May 2001 the fixed assets of the 50%-owned company  (accounted for as an
     equity investment)  involved in natural gas well testing operations for the
     Natural Gas Well Servicing ("WS") Segment were sold for $1,550,000, subject
     to a holdback of $150,000.  The Company received $21,000 and $65,000 of the
     holdback in June and  November,  respectively,  of 2001. As a result of the
     sale all debt of the  50%-owned  company  was  retired  and the Company was
     relieved of contingent  liabilities  totaling $512,000.  In August 2001 the
     Company made the decision to cease pursuing opportunities in Mexico and the
     WS Segment was  discontinued.  In December 2001 all of the sand  separators
     owned by the  100%-owned  company in the WS Segment were sold for $100,000.
     The Company is now pursuing the sale of all  remaining  equipment  owned by
     the segment.

     The segment  recorded no revenues  for either the first  quarter of 2002 or
     2001. Beard's share of operating losses from the discontinued  segment were
     $11,000 and  $269,000  for the three  months  ended March 31, 2002 and 2001
     respectively.  The loss for the first  quarter  of 2002  included  gains on
     sales of equipment totaling $36,000. For the first quarter of 2001, Beard's
     share  of  operating  losses  from the  50%-owned  company  were  $238,000,
     including   a   $100,000   provision   for   estimated   losses   from  the
     discontinuation of operations.  The remaining $31,000 of losses incurred in
     the three months ended March 31, 2001 were  associated  with the operations
     of the wholly-owned company and were not anticipated in the loss accrual.

     As of March 31, 2002, the significant assets of the WS Segment consisted of
     fixed  assets  with a  recorded  value of  $144,000  and cash and  accounts
     receivable totaling of $45,000.  The significant  liabilities of the entity
     consisted of trade accounts payable and accrued expenses  totaling $60,000.
     It is anticipated that all liabilities of the segment will be paid prior to
     December 31, 2002.

     ER Segment
     In March of 2001 the  Company  determined  that it would no longer  provide
     financial support to ISITOP, Inc., an 80%-owned subsidiary whose operations
     had previously  comprised the Company's  environmental  remediation  ("ER")
     Segment.  In May 2001 ISITOP was notified that the segment's exclusive U.S.
     marketing  license  for the  chemical  used  for PAH  remediation  had been
     cancelled,  and the segment was discontinued.  ISITOP generated no revenues
     in 2002 or in 2001.  ISITOP's operating losses totaled none and $17,000 for
     the three months ended March 31, 2002 and 2001,respectively.  ISITOP had no
     significant assets or liabilities at March 31, 2002.

(4)  Redeemable Preferred Stock
---  --------------------------
     The Company's  preferred stock is mandatorily  redeemable  through December
     31, 2002, from one-third of Beard's  "consolidated  net income" as defined.
     Accordingly,  one-third  of future  "consolidated  net income" will accrete
     directly to preferred  stockholders  and reduce  earnings per common share.
     The Company's 2002 operations through March 31 were not sufficient to begin
     the  sharing  of the  consolidated  net  income.  To the  extent  that  the
     preferred  stock is not  redeemed  by  December  31,  2002,  the  shares of
     preferred stock can be converted into shares of the Company's common stock.

(5)  Loss Per Share
---  --------------
     Basic loss per share data is  computed  by dividing  loss  attributable  to
     common  shareholders  by the  weighted  average  number  of  common  shares
     outstanding for the period.

     Diluted loss per share in the  statements of operations  exclude  potential
     common shares  issuable upon  conversion of redeemable  preferred  stock or
     exercise of stock options as a result of losses from continuing  operations
     for all periods presented.

(6)  Income Taxes
---  ------------
     In accordance with the provisions of the Statement of Financial  Accounting
     Standard No. 109,  "Accounting  for Income  Taxes"  ("SFAS No.  109"),  the
     Company's net deferred tax asset is being carried at zero book value, which
     reflects the  uncertainties of the Company's  utilization of the future net
     deductible amounts. The Company recorded refunds of $41,000 and $19,000 for
     federal and state income  taxes,  respectively,  for the three months ended
     March 31, 2001.  The Company  recorded no provision for taxes for the three
     months ended March 31, 2002.

     At March 31, 2002, the Company  estimates that it had the following  income
     tax  carryforwards  available for both income tax and  financial  reporting
     purposes (in thousands):

                                               Expiration
                                                  Date             Amount
                                                  ----             ------
        Federal regular tax operating
          loss carryforwards                    2004-2009         $ 52,600

        Tax depletion carryforward              Indefinite        $  5,500

(7)  Commitments and Contingencies
---  -----------------------------
     In the normal  course of  business  various  actions  and claims  have been
     brought or asserted against the Company.  Management does not consider them
     to be material to the Company's financial position, liquidity or results of
     operations.

     In connection with the sale of the fixed assets of the Mexican well testing
     operations  the  Company  and  its  50%  partner  have  each,  as  to  50%,
     indemnified  the purchaser from and against any claims,  demands,  actions,
     damages, cause of action, cost, liability, penalties and expense (including
     reasonable  legal fees) that  purchaser  or its  successors  or assigns may
     suffer arising from the Mexican subsidiary's failure to file any applicable
     tax returns or pay any and all of its taxes which had accrued  prior to the
     sale date. As of March 31, 2002, the accrued tax liabilities were estimated
     to be $3,000, with the Company liable for one-half of such amount.

     The Company has an  indemnity  obligation  to its  institutional  preferred
     stockholder  and one of its assignees for certain losses (i) arising out of
     the  ownership  and/or  operation of Beard Oil's former oil and gas assets,
     including  environmental  liabilities;  (ii)  arising  under  any  employee
     benefit or severance  plan; or (iii) relating to any  misrepresentation  or
     inaccuracy  in any  representation  made by the  Company  or  Beard  Oil in
     connection with the Restructure (collectively, the "Obligations").  Neither
     Beard nor Beard Oil is presently aware of any material liabilities existing
     as a result of such Obligations.

(8)  Business Segment Information
---  ----------------------------
     The Company manages its business by products and services and by geographic
     location  (by  country).  The Company  evaluates  its  operating  segments'
     performance  based on earnings or loss from operations before income taxes.
     The Company had four  reportable  segments in the first quarter of 2002 and
     2001: Coal, Carbon Dioxide, China and e-Commerce.

     The Coal  Segment is in the business of  operating  coal fines  reclamation
     facilities  in the U.S. and provides  slurry pond core  drilling  services,
     fine coal laboratory  analytical services and consulting services.  The CO2
     Segment  consists  of the  production  of CO2 gas.  The  China  Segment  is
     pursuing environmental opportunities in China, focusing on the installation
     and construction of facilities which utilize the patented  AirLance Compost
     Systems(TM)  composting  technology.  The e-Commerce  Segment consists of a
     71%-owned  subsidiary  which is (i) pursuing the  development  of a payment
     system to be used  exclusively for Internet  transactions and (ii) focusing
     on developing  licensing  agreements and other fee based  arrangements with
     companies   implementing   technology   in  conflict   with  the  Company's
     intellectual property.

     The  following is certain  financial  information  regarding  the Company's
     reportable segments (presented in thousands of dollars).

     General  corporate  assets and  expenses  are not  allocated  to any of the
     Company's operating segments; therefore, they are included as a reconciling
     item to  consolidated  total  assets  and loss from  continuing  operations
     before  income  taxes  reported  in the  Company's  accompanying  financial
     statements.

<TABLE>
<CAPTION>
                                           Carbon
                                  Coal     Dioxide     China    e-Commerce   Totals
                                  ----     -------     -----    ----------   ------
<S>                             <C>        <C>         <C>         <C>      <C>
      Three months ended
      ------------------
        March 31, 2002
        --------------
     Revenues from
       external  customers      $    1     $   86      $   -       $   -    $    87
     Segment profit (loss)        (138)        47       (146)        (36)      (273)
     Segment assets              1,580        404        463          63      2,510

      Three months ended
      ------------------
        March 31, 2001
        --------------
     Revenues from
       external  customers      $   52     $  126      $   -       $   -    $   178
     Segment profit (loss)        (100)        94       (176)        (52)      (234)
     Segment assets              1,622        443          5          60      2,130
</TABLE>


     Reconciliation  of total reportable  segment loss to consolidated loss from
     continuing  operations  before  income  taxes is as  follows  for the three
     months ended March 31, 2002 and 2001 in thousands):

<TABLE>
<CAPTION>
                                                               2002       2001
                                                            ---------  ---------
<S>                                                         <C>        <C>
       Total loss for reportable segments                   $   (273)  $   (234)
       Eliminate loss from China operations accounted for
           as an equity investment                               146        176
       Equity in loss from China operations accounted for
           as an equity investment                               (73)       (88)
       Net corporate costs not allocated to segments            (213)      (128)
                                                            ---------  ---------
            Total consolidated loss from continuing
                operations                                  $   (413)  $   (274)
                                                            =========  =========
</TABLE>

                       THE BEARD COMPANY AND SUBSIDIARIES

                 DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

     THIS REPORT  INCLUDES  "FORWARD-LOOKING  STATEMENTS"  WITHIN THE MEANING OF
SECTION 27A OF THE  SECURITIES  ACT OF 1933, AS AMENDED,  AND SECTION 21E OF THE
SECURITIES  EXCHANGE  ACT  OF  1934,  AS  AMENDED.  ALL  STATEMENTS  OTHER  THAN
STATEMENTS OF HISTORICAL  FACTS  INCLUDED OR  INCORPORATED  BY REFERENCE IN THIS
REPORT, INCLUDING, WITHOUT LIMITATION, STATEMENTS REGARDING THE COMPANY'S FUTURE
FINANCIAL POSITION,  BUSINESS STRATEGY,  BUDGETS,  PROJECTED COSTS AND PLANS AND
OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS, ARE FORWARD-LOOKING  STATEMENTS.
IN ADDITION,  FORWARD-LOOKING  STATEMENTS GENERALLY CAN BE IDENTIFIED BY THE USE
OF  FORWARD-LOOKING  TERMINOLOGY  SUCH AS  "MAY,"  "WILL,"  "EXPECT,"  "INTEND,"
"PROJECT,"  "ESTIMATE,"  "ANTICIPATE,"  "BELIEVE," OR "CONTINUE" OR THE NEGATIVE
THEREOF OR  VARIATIONS  THEREON OR SIMILAR  TERMINOLOGY.  ALTHOUGH  THE  COMPANY
BELIEVES THAT THE EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING  STATEMENTS ARE
REASONABLE,  IT CAN GIVE NO ASSURANCE THAT SUCH  EXPECTATIONS WILL PROVE TO HAVE
BEEN  CORRECT.  IMPORTANT  FACTORS  THAT COULD  CAUSE  ACTUAL  RESULTS TO DIFFER
MATERIALLY  FROM  THE  COMPANY'S  EXPECTATIONS   ("CAUTIONARY  STATEMENTS")  ARE
DISCLOSED  UNDER "ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL
CONDITION  AND  RESULTS  OF  OPERATIONS"  AND  ELSEWHERE  IN  THIS  REPORT.  ALL
SUBSEQUENT  WRITTEN  AND ORAL  FORWARD-LOOKING  STATEMENTS  ATTRIBUTABLE  TO THE
COMPANY,  OR PERSONS  ACTING ON ITS BEHALF,  ARE  EXPRESSLY  QUALIFIED  IN THEIR
ENTIRETY BY THE CAUTIONARY STATEMENTS.  THE COMPANY ASSUMES NO DUTY TO UPDATE OR
REVISE ITS FORWARD-LOOKING  STATEMENTS BASED ON CHANGES IN INTERNAL ESTIMATES OR
EXPECTATIONS OR OTHERWISE.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

     The  following  discussion  focuses on  material  changes in the  Company's
financial  condition  since  December 31, 2001 and results of operations for the
quarter  ended March 31, 2002,  compared to the prior year first  quarter.  Such
discussion should be read in conjunction with the Company's financial statements
including the related footnotes.

     In preparing the discussion and analysis,  the Company has presumed readers
have read or have access to the  discussion  and  analysis  of the prior  year's
results of  operations,  liquidity  and capital  resources  as  contained in the
Company's 2001 Form 10-K.

     The Coal  Segment is in the business of  operating  coal fines  reclamation
facilities  in the U.S. and provides  slurry pond core drilling  services,  fine
coal laboratory  analytical  services and consulting  services.  The CO2 Segment
consists  of  the   production  of  CO2  gas.  The  China  Segment  is  pursuing
environmental   opportunities   in  China  focusing  on  the   installation  and
construction  of  facilities   which  utilize  the  patented   AirLance  Compost
Systems(TM)  composting  technology.   The  e-Commerce  Segment  consists  of  a
71%-owned  subsidiary  which is pursuing the  development of a virtually  secure
payment system to be used  exclusively  for Internet  transactions.  Its current
focus is to develop licensing arrangements and other fee based arrangements with
companies implementing technology in conflict with its intellectual property.

     In 1999 the Company  adopted a plan to  discontinue  its ITF  Segment,  and
those operations were reflected as discontinued operations in 1998. The majority
of the assets of the ITF  Segment  were  disposed  of in 1999 and the Company is
pursuing the sale of the remaining assets. In 1999 the Company adopted a plan to
discontinue its BE/IM Segment, and those operations have since been reflected as
discontinued.  The Company is now in the process of liquidating those assets. In
March 2001 the Company ceased providing  financial  support to ISITOP,  Inc. and
shortly thereafter its exclusive marketing license was terminated.  Accordingly,
the  operations of the ER Segment have been  reflected as  discontinued.  In May
2001 the  fixed  assets of the  50%-owned  company  (accounted  for as an equity
investment)  involved  in the WS Segment  were sold.  In August 2001 the Company
ceased  pursuing  opportunities  in Mexico related to the sand separator  assets
previously operated in Mexico in the WS Segment,  and the Company has since been
pursuing the sale of the segment's remaining assets. As a result, the operations
of the WS Segment have now been reflected as discontinued.


Material  changes in  financial  condition  - March 31,  2002 as  compared  with
December 31, 2001.

     The following table reflects changes in the Company's  financial  condition
during the periods indicated:

<TABLE>
<CAPTION>
                               March 31,       December 31,       Increase
                                 2002             2001           (Decrease)
                                 ----             ----           ----------
<S>                         <C>                <C>               <C>
Cash and cash equivalents   $      37,000      $     55,000      $   (18,000)

Working capital             $    (439,000)     $   (350,000)     $   (89,000)

Current ratio                   0.48 to 1         0.61 to 1
</TABLE>

     During the first quarter of 2002, the Company's  working capital  decreased
by $89,000 from  $(350,000)  as of December 31,  2001.  Related  entities of the
Chairman of the Board made net advances of $365,000 to the Company.  $147,000 of
working capital were used to help fund the operations of the Coal Segment. There
were net advances of $169,000 to the  Company's  joint  venture  involved in the
pursuit of environmental  opportunities in China. The Company received  payments
on notes  receivable  totaling  $20,000 during the quarter ended March 31, 2002.
$36,000 was used to fund the startup activities of the e-Commerce  Segment.  The
remainder of the working capital was utilized to fund other operations.

     The Company's  principal  business is coal  reclamation,  and this is where
management's   operating  attention  is  primarily  focused.  The  Coal  Segment
currently  has four major  projects  in various  stages of  development,  all of
which,  subject to arranging  necessary  financing,  are expected to mature into
operating  projects  during  2002 and 2003.  In each case core  holes  have been
drilled and sample  analyses have been  completed with  favorable  results.  The
projects are in four  different  states and involve four different  parties.  On
three of the projects we are  negotiating  with the pond owners  concerning  the
installation  of a preparation  plant to recover clean coal.  The fourth project
involves  the  transfer  of a large  amount of  non-recoverable  slurry to a new
disposal area, and may ultimately  result in the  installation  of a preparation
plant.

     The first three projects  require the  arrangement of necessary  financing;
the fourth  would  require no  financing.  Negotiations  are in progress  with a
substantial  third party to form a joint  venture or limited  liability  company
that would  provide the initial  working  capital and  guarantee  the  necessary
equipment  financing  on the three  projects.  Although  the  timing of the four
projects is uncertain,  they are all  considered to have a high  probability  of
activity, subject to obtaining the necessary financing on the three. However, no
definitive contracts have as yet been signed, and there is no assurance that the
required  financing  will be  obtained or that any or all of the  projects  will
materialize.

     After more than three years of  development  activity by the China Segment,
it appears that its efforts are finally  starting to bear fruit. The segment has
signed contracts and formed  Cooperative  Joint Ventures  ("CJV's") with various
Chinese partners which call for the construction of three compost  manufacturing
facilities  in which the Company  will own an interest  and receive an operating
fee. The initial plant,  located at Baoding in Hebei  Province,  broke ground in
March of 2001.  Construction was delayed due to cold weather, but is targeted to
resume in the spring of 2002. The first  installment (US $61,571,  net of tax of
approximately  $10,000)  of the  fabrication  license  fee for  this  plant  was
received in December of 2001, with the next installment anticipated this summer.
A second plant,  located at Qihe City in Shandong Province,  is also targeted to
resume  construction  in the spring of 2002.  The third CJV, which calls for the
construction  of a plant in the  City of  Handan,  is on  indefinite  hold.  The
segment is currently  pursuing 13 other projects,  seven of which are considered
to have a high probability for activity.  Two of these projects are in the final
stages of contract negotiation, with project construction slated to start within
the next 90 days. In the event these projects  materialize  they would result in
contracts in which the segment would receive substantial  front-end fees with no
equity  interest.  If  the  plants  currently  under  construction  progress  on
schedule,  they are projected to generate  fabrication license fees,  management
fees and  installation  fees in 2002 which  will more than  cover the  segment's
projected overhead as well as its required  injections of registered capital for
the projects during the year.

     Key to the Company's liquidity is the anticipated  settlement of a lawsuit,
in which the Company is a  Plaintiff,  which has been in progress  since 1996. A
Settlement  Agreement  was signed by the parties in September of 2001. On May 6,
2002, the federal judge issued the Final  Judgment  approving the Settlement and
ordered that a settlement fund of $50.4 million in cash be established to settle
the  class  action  lawsuit.  Objectors  have 30 days from May 6 to  appeal.  In
companion  rulings on the same date the Judge also  approved the  allocation  of
settlement  funds among the class  members in the lawsuit.  Distribution  of the
proceeds  will be  delayed  until  all  appeal  periods  have run.  The  Company
anticipates  its  share  of the  proceeds  will be in  excess  of $3.5  million.
Distribution of the  contemplated  proceeds will have a significant  impact upon
the Company's  liquidity.  Although there is the possibility  that appeals could
delay the  Settlement or that  intervening  parties could  ultimately  cause the
Settlement  to be  overturned,  the Company  believes  it is  unlikely  that the
Settlement will be overturned.

     In 2000 the Company supplemented its $300,000 credit line with a commercial
bank by arranging  for  borrowings  of up to  $1,500,000  from  affiliates  of a
related  party.  Such  lines  had been  increased  to a total of  $2,350,000  in
September of 2001, and were subsequently  increased to $2,725,000 in February of
2002 to provide additional working capital.  To further bolster working capital,
the Company is  currently  pursuing a private  placement  of  $1,200,000  of 10%
subordinated  notes due  September  30,  2003,  with  warrants to purchase up to
285,000 shares of Company common stock, to "bridge the gap" until the settlement
funds are distributed or until the anticipated  Coal and China projects  achieve
positive  cash flow.  As of May 13, 2002,  the Company had closed on the sale of
$455,000 of the Notes,  and had received verbal  commitments for the purchase of
an additional  $625,000 of Notes which are expected to close within the next few
days. In addition,  the Company expects to generate cash from the disposition of
the remaining assets from the  discontinued  ITF, BE/IM and WS Segments and from
the pay down of notes receivable,  and can sell certain other assets to generate
cash if necessary.

     The  Company  believes  that  the cash  generated  from  the  private  debt
placement  currently in progress,  coupled with the cash generated from the sale
of  assets,  will be more  than  adequate  to enable  the  Company  to  continue
operations  until  (i) the  settlement  funds  have  been  received  or (ii) the
operations of the projects under development in the Coal and China Segments have
come on stream and the Company is generating positive cash flow.

     Through the period ending  December 31, 2002, the Company's  liquidity will
be  reduced to the extent it is  required  to redeem any of the Beard  preferred
stock  pursuant  to  the  mandatory  redemption  provisions.  See  Note 4 to the
accompanying financial statements.

Material  changes in results of  operations  - Quarter  ended  March 31, 2002 as
compared with the Quarter ended March 31, 2001.

     The loss for the first  quarter of 2002 was  $461,000  compared to $584,000
for the 2001 first quarter.  The operating loss in the Coal Segment increased by
$29,000.  The  operating  profit  in the  CO2  Segment  decreased  $47,000.  The
e-Commerce Segment incurred operating losses of $36,000 for the first quarter of
2002  compared to $51,000 in the first quarter of 2001.  The  operating  loss in
Other  activities for the first quarter of 2002 decreased $6,000 compared to the
same period in 2001.  As a result,  the operating  loss for the current  quarter
increased  $55,000 to $351,000 versus $296,000 in the  corresponding  quarter of
the prior year.

     Operating results of the Company's primary operating Segments are reflected
below:

<TABLE>
<CAPTION>
                                           2002           2001
                                           ----           ----
<S>                                      <C>           <C>
      Operating profit (loss):
         Coal reclamation                $(147,000)    $(118,000)
         Carbon dioxide                     47,000        94,000
         China                                   -             -
         e-Commerce                       (36,000)      (51,000)
                                        -----------   -----------
                  Subtotal               (136,000)      (75,000)
         Other                           (215,000)     (221,000)
                                        -----------   -----------
                                        $(351,000)    $(296,000)
                                        ===========   ===========
</TABLE>

     The "Other" in the above table  reflects  primarily  general and  corporate
activities, as well as other activities of the Company.

Coal reclamation

     The segment's  revenues for the first quarter of 2002 decreased  $51,000 to
$1,000  compared  to  $52,000  for the  first  quarter  of 2001.  The  segment's
consulting and coring  business  declined  sharply in the current quarter as the
Company  focused on the four major projects  mentioned  above.  Operating  costs
decreased $10,000 to $119,000 for the first quarter of 2002 compared to $129,000
for the same period in 2001, reflecting the decreased activity level. SG&A costs
decreased $13,000 for the three months ended March 31, 2002 compared to the same
period in 2001. As a result,  the operating loss  increased  $29,000 to $147,000
for the first quarter of 2002 compared to the first three months of 2001.

Carbon dioxide

     First  quarter 2002  operations  reflected  an operating  profit of $47,000
compared to $94,000 for the 2001 first  quarter.  The sole component of revenues
for this segment is the sale of CO2 gas from the working and overriding  royalty
interests of the Company's two carbon  dioxide  producing  units in Colorado and
New Mexico.  Operating  revenues  in this  segment  decreased  $40,000 or 32% to
$86,000 for the first  three  months of 2002  compared to $126,000  for the same
period in 2001.  CO2 gas is often used as an injectant in secondary and tertiary
recovery  processes  in the oil and gas  industry.  The  decline  in oil  prices
beginning in late 2000 and continuing  throughout  2001 resulted in a decline in
the  demand  for  CO2 gas for  tertiary  recovery.  This  was  reflected  in the
decreased revenue for the paid volumes to the Company's interest.

e-Commerce

     The  Company's  startup  company  involved in the  development  of a secure
Internet  purchasing  system incurred an operating loss of $36,000 for the first
quarter of 2002 versus an operating  loss of $51,000 in the prior year  quarter.
The segment had no  revenues  in either the first  quarter of 2001 or 2000.  The
reduced  loss  reflects  starpay's  shift in focus from the  development  of its
technology to concentrate  on developing  licensing  arrangements  and other fee
based  arrangements  with  companies  implementing  technology  in conflict with
starpay's intellectual property.

Other activities

     Other operations, consisting primarily of general and corporate activities,
generated  a $6,000  smaller  operating  loss for the first  quarter  of 2002 as
compared to the same period last year.

Selling, general and administrative expenses

     The Company's selling,  general and administrative expenses ("SG&A") in the
current  quarter  decreased to $253,000 from $290,000 in the 2001 first quarter.
The primary reason for this was a $16,000 decrease in SG&A expenses  incurred by
the e-Commerce  Segment in the first quarter of 2002 compared to the same period
in 2001 as starpay  shifted its focus from the  development of its technology to
concentrate on developing  licensing agreements and other fee based arrangements
with  companies  implementing  technology  in  conflict  with  its  intellectual
property.  In addition,  the Coal Segment incurred $13,000 less in SG&A costs in
the first  quarter of 2002  compared  to the same  period in 2001 as the segment
reduced  legal  fees  and  travel  costs  in its  pursuit  of  projects  for its
technology.

Depreciation, depletion and amortization expenses

     DD&A  expense for the first  quarter of 2002 was  unchanged  from the prior
year's first quarter.

Other income and expenses

     The other  income and  expenses  for the first  quarter of 2002 netted to a
loss of  $62,000  compared  to a loss of  $38,000  for the same  period in 2001.
Interest  income was down $14,000 for the first  quarter of 2002 compared to the
same period in 2001.  Interest  expense  was  $28,000  higher as a result of the
increase in debt,  primarily to a related party.  The Company realized a gain on
sale of assets for the three months  ended March 31, 2002 of $9,000  compared to
$17,000 for the prior year quarter.

     The Company's equity in the operations of  unconsolidated  affiliates was a
loss of $31,000 for the first  quarter of 2002 compared to a loss of $57,000 for
the same  period  in 2001.  The  Company's  equity  in the  earnings  of  Cibola
increased  $11,000 from $31,000 for the first quarter of 2001 to $42,000 for the
same period in 2002 reflecting  Cibola's  improvement in operating results.  The
Company's  equity in the operating  losses of its affiliate in China was $73,000
for the first  quarter of 2002  compared to $88,000 for the three  months  ended
March 31, 2001.

Income taxes

     The Company  recorded  refunds of $41,000 and $19,000 for federal and state
income taxes,  respectively,  in the first quarter of 2001. The Company recorded
no  provision  for taxes in the  first  quarter  of 2002.  The  Company  has not
recorded any financial benefit attributable to its various tax carryforwards due
to uncertainty regarding their utilization and realization.

Discontinued operations

ITF Segment
     In  1999  the  Company's  Board  of  Directors  adopted  a  formal  plan to
discontinue  its interstate  travel  facilities  ("ITF")  Segment and recorded a
$1,603,000  estimated  loss for the  discontinuance  in 1998.  ITF disposed of a
majority of its assets in 1999,  retaining two convenience stores  ("C-stores"),
including their equipment and inventory, and Beard became 100% owner of ITF.

     Beard  recorded an additional  $420,000 loss in 2000;  $60,000  represented
operating  losses expected to be incurred by the  discontinued ITF Segment prior
to the anticipated  disposal date of the remaining assets;  $360,000 represented
an  additional  reduction in the  estimated  realizable  value of the  remaining
C-stores and related  assets as of December 31, 2000.  ITF's revenues and actual
operating  losses were $7,000 and  $31,000,  respectively,  for the three months
ended March 31,  2001.  The actual  losses for the three  months ended March 31,
2001 were  charged  against the loss accrual  recorded in the fourth  quarter of
2000.

     In December 2001, Beard recorded an additional  $100,000  impairment in the
carrying value of the facilities and $14,000 for  anticipated  operating  losses
for the period from December 31, 2001 through the expected  disposal date of the
remaining assets.  ITF recorded no revenues for the three months ended March 31,
2002 and  incurred  $4,000 of losses  for the same  period  which  were  charged
against the loss  accrual  recorded in 2001.  Included in this loss was a $2,000
gain on the sale of equipment.

     As of March 31, 2002,  the  significant  assets  related to the ITF Segment
consisted primarily of the two remaining C-stores with a total recorded value of
$409,000. The significant liabilities of the segment consisted of trade accounts
payable  and  accrued  expenses  totaling  $14,000.  Beard is  actively  seeking
opportunities  to sell the  remaining  C-stores  and expects  them to be sold by
December 31, 2002.

BE/IM Segment
     In 1999 the Management Committee of North American Brine Resources ("NABR")
adopted a formal plan to  discontinue  the  business  and dispose of its assets.
Beard had a 40%  ownership  in NABR,  which was  accounted  for under the equity
method.  As a  result,  Beard's  share of  NABR's  operating  results  have been
reported  as  discontinued  for  all  periods   presented  in  the  accompanying
statements of operations.  The joint venture was dissolved in September 2000 and
the Japanese  partners  received  their final  distribution  of cash in December
2000, with the Company taking over the remaining assets and liabilities.

     In 1999 Beard  recorded a $540,000  loss,  which  represented  its share of
NABR's $1,350,000 estimated loss from the discontinuation of operations.  NABR's
loss included  $572,000 of anticipated  operating losses through April 2000 (the
date  operations  ceased for the larger of its two  plants) and costs of ceasing
operations.  NABR's  revenues for the smaller of the two plants were $77,000 and
none for the three  months ended March 31, 2002 and 2001,  respectively.  NABR's
operating losses for the three months ended March 31, 2002 and 2001 were $37,000
and  $24,000,  respectively,  and were  not  anticipated  in the  loss  accruals
recorded in 1999.  NABR  charged  $2,000 and $31,000 for the three  months ended
March 31, 2002 and 2001,  respectively,  against  the  accrual  for  anticipated
expenses related to the shutdown of the larger of its two plants.

     As of March 31, 2002, the significant  assets related to NABR's  operations
consisted  primarily of equipment and inventory  with  estimated net  realizable
values of $68,000 and $20,000 respectively.  The significant liabilities related
to NABR's  operations  consisted  primarily  of accounts  payable of $15,000 and
accrued expenses related to the shutdown of operations  totaling  $151,000.  The
Company is actively pursuing opportunities to sell NABR's assets and expects the
disposition to be completed by December 31, 2002.

WS Segment
     In May 2001 the fixed assets of the 50%-owned company  (accounted for as an
equity  investment)  involved in natural  gas well  testing  operations  for the
Natural Gas Well Servicing ("WS") Segment were sold for $1,550,000, subject to a
holdback of $150,000.  The Company  received $21,000 and $65,000 of the holdback
in June and November, respectively, of 2001. As a result of the sale all debt of
the  50%-owned  company was retired and the Company was  relieved of  contingent
liabilities  totaling $512,000.  In August 2001 the Company made the decision to
cease pursuing  opportunities in Mexico and the WS Segment was discontinued.  In
December 2001 all of the sand separators owned by the 100%-owned  company in the
WS Segment were sold for  $100,000.  The Company is now pursuing the sale of all
remaining equipment owned by the segment.

     The segment  recorded no revenues  for either the first  quarter of 2002 or
2001.  Beard's  share of  operating  losses from the  discontinued  segment were
$11,000  and  $269,000  for the  three  months  ended  March  31,  2002 and 2001
respectively.  The loss for the first quarter of 2002 included gains on sales of
equipment  totaling  $36,000.  For the first  quarter of 2001,  Beard's share of
operating losses from the 50%-owned company were $238,000,  including a $100,000
provision for  estimated  losses from the  discontinuation  of  operations.  The
remaining  $31,000 of losses  incurred in the three  months ended March 31, 2001
were  associated  with the operations of the  wholly-owned  company and were not
anticipated in the loss accrual.

     As of March 31, 2002, the significant assets of the WS Segment consisted of
fixed assets with a recorded value of $144,000 and cash and accounts  receivable
totaling of $45,000.  The  significant  liabilities of the segment  consisted of
trade accounts payable and accrued expenses totaling $60,000.  It is anticipated
that all liabilities of the segment will be paid prior to December 31, 2002.

ER Segment
     In March of 2001 the  Company  determined  that it would no longer  provide
financial support to ISITOP,  Inc., an 80%-owned subsidiary whose operations had
previously comprised the Company's environmental  remediation ("ER") Segment. In
May 2001 ISITOP was notified that the segment's exclusive U.S. marketing license
for the chemical used for PAH remediation  had been  cancelled,  and the segment
was  discontinued.  ISITOP  generated  no revenues in 2002 or in 2001.  ISITOP's
operating  losses  totaled none and $17,000 for the three months ended March 31,
2002 and  2001,respectively.  ISITOP had no significant assets or liabilities at
March 31, 2002.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

     At March 31,  2002,  the  Company  had notes  receivable  of  $272,000  and
long-term  debt of  $3,247,000.  The notes  receivable and long-term debt with a
principal  balance of $2,732,000  have fixed interest  rates and therefore,  the
Company's  interest  income  and  expense  and  operating  results  would not be
affected by an increase in market interest rates for these items.  The Company's
outstanding  bank debt totaling  $300,000  floats with the prime rate, and a 10%
increase in market  interest rates would have  increased the Company's  interest
expense by  approximately  $1,000.  At March 31,  2002, a 10% increase in market
interest  rates  would  have  reduced  the  fair  value of the  Company's  notes
receivable by $3,000 and reduced the fair value of its debt by $38,000.

     The Company has no other market risk sensitive instruments.


PART II.  OTHER INFORMATION.

Item 2.  Changes in Securities.

     The Company's  preferred stock is mandatorily  redeemable  through December
31, 2002 from one-third of Beard's  "consolidated  net income" as defined in the
Stock Purchase  Agreement.  Accordingly,  one-third of future  "consolidated net
income" will accrete directly to preferred  stockholders and reduce earnings per
common share. As a result of these redemption  requirements,  the payment of any
dividends to the common  stockholders  in the near future is very unlikely.  See
Note 5 to the accompanying financial statements.

Item 6.  Exhibits and Reports on Form 8-K.

(a)  The following  exhibits are filed with this Form 10-Q and are identified by
     the numbers indicated:

2         Plan  of  acquisition,  reorganization,  arrangement,  liquidation  or
          succession:

2(a)      Agreement and Plan of Reorganization  by and among  Registrant,  Beard
          Oil Company  ("Beard Oil") and New Beard,  Inc.,  dated as of July 12,
          1993  (see  Addendum  A to Part I,  which is  incorporated  herein  by
          reference;  schedules  to the  Agreement  have  been  omitted).  (This
          Exhibit has been previously  filed as Exhibit 3(b),  filed on July 27,
          1993 to  Registrant's  Registration  Statement  on Form S-4,  File No.
          33-66598, and same is incorporated herein by reference).

2(b)      Agreement  and Plan of Merger by and between The Beard Company and The
          New Beard Company,  dated as of 2(b) September 16, 1997. (This Exhibit
          has been previously filed as Exhibit B to Registrant's Proxy Statement
          filed on  September  12,  1997,  and same is  incorporated  herein  by
          reference).

2(c)      Certificate  of Merger  merging The Beard  Company  into The New Beard
          Company as filed with the  Secretary  of State of Oklahoma on November
          26, 1997.  (This Exhibit has been  previously  filed as Exhibit 2.1 to
          Registrant's  Form  8-K,  filed  on  December  8,  1997,  and  same is
          incorporated herein by reference).

3(i)      Certificate  of  Incorporation  of The New Beard Company as filed with
          the  Secretary  of State of  Oklahoma on  September  11,  1997.  (This
          Exhibit has been previously  filed as Exhibit C to Registrant's  Proxy
          Statement filed on September 12, 1997, and same is incorporated herein
          by reference).

3(ii)     Registrant's  By-Laws as currently in effect.  (This  Exhibit has been
          previously  filed as Exhibit 3(ii) to  Registrant's  Form 10-K for the
          period ended  December 31, 1997,  filed on March 31, 1998, and same is
          incorporated herein by reference).

4         Instruments defining the rights of security holders:

4(a)      Certificate  of  Designations,   Powers,   Preferences  and  Relative,
          Participating,    Option   and   Other   Special   Rights,   and   the
          Qualifications,  Limitations or  Restrictions  Thereof of the Series A
          Convertible  Voting  Preferred Stock of the Registrant.  (This Exhibit
          has been previously filed as Exhibit 3(c) to Amendment No. 2, filed on
          September 17, 1993 to Registrant's Registration Statement on Form S-4,
          File No. 33-66598, and same is incorporated herein by reference).

4(b)      Settlement Agreement,  with Certificate of Amendment attached thereto,
          by and among Registrant,  Beard Oil, New York Life Insurance  Company,
          New York Life Insurance and Annuity Company,  John Hancock Mutual Life
          Insurance Company,  Memorial Drive Trust and Sensor, dated as of April
          13, 1995.  (This Exhibit has been previously  filed as Exhibit 4(g) to
          Registrant's Form 10-K for the period ended December 31, 1994 and same
          is incorporated herein by reference).

10        Material contracts:

10(a)     Amendment  No. One to The Beard  Company  1993 Stock Option Plan dated
          August 27, 1993, as amended June 4, 1998. (The Amended Plan supersedes
          the  original  Plan  adopted  on August 27,  1993.  This  Exhibit  has
          previously  been  filed as  Exhibit  A,  filed on  April  30,  1998 to
          Registrant's  Proxy  Statement  dated  April  30,  1998,  and  same is
          incorporated herein by reference).*

10(b)     Form of  Indemnification  Agreement  dated  December 15, 1994,  by and
          between  Registrant  and  eight  directors.  (This  Exhibit  has  been
          previously  filed as Exhibit 10(b) to  Registrant's  Form 10-K for the
          period ended  December 31, 2000,  filed on April 2, 2001,  and same is
          incorporated herein by reference).

10(c)     The Beard Company 1994 Phantom  Stock Units Plan as amended  effective
          October 23, 1997.  (This Exhibit has been previously  filed as Exhibit
          10(b) to  Registrant's  Form 10-K for the period  ended  December  31,
          1999,  filed on April 14,  2000,  and same is  incorporated  herein by
          reference).*

10(d)     Amendment No. Three to The Beard Company  Deferred Stock  Compensation
          Plan dated November 1, 1995, as amended October 24, 2001. (The Amended
          Plan  supersedes  the  original  Plan  adopted on June 3,  1996.  This
          Exhibit has  previously  been filed as Exhibit 99,  filed on April 10,
          2002,  to  Registrant's  Registration  Statement on Form S-8, File No.
          333-85936, and same is incorporated herein by reference).*

10(e)     Amended  and  Restated  Nonqualified  Stock  Option  Agreement  by and
          between Richard D. Neely and ISITOP, Inc.  ("ISITOP"),  dated November
          12, 1998.  (This Exhibit has been previously filed as Exhibit 10(g) to
          Registrant's  Form 10-K for the period ended December 31, 1998,  filed
          on April 15, 1999, and same is incorporated herein by reference).*

10(f)     Amended  and  Restated  Nonqualified  Stock  Option  Agreement  by and
          between  Jerry S. Neely and ISITOP,  dated  November 12,  1998.  (This
          Exhibit has been  previously  filed as Exhibit  10(h) to  Registrant's
          Form 10-K for the period ended  December 31, 1998,  filed on April 15,
          1999, and same is incorporated herein by reference).*

10(g)     Nonqualified  Stock Option Agreement by and between Robert A. McDonald
          and  ISITOP,  dated   November  12,  1998.  (This  Exhibit  has   been
          previously  filed as Exhibit 10(i) to  Registrant's  Form 10-K for the
          period ended  December 31, 1998,  filed on April 15, 1999, and same is
          incorporated herein by reference).*

10(h)     Incentive Stock Option  Agreement by and between Philip R. Jamison and
          Beard  Technologies,  Inc. ("BTI"),  dated May 18, 1998. (This Exhibit
          has been previously  filed as Exhibit 10(k) to Registrant's  Form 10-K
          for the period ended  December 31, 1998,  filed on April 15, 1999, and
          same is incorporated herein by reference).*

10(i)     Subscription  Agreement by and between Cibola  Corporation  ("Cibola")
          and  Registrant,   dated  April  10,  1996.  (This  Exhibit  has  been
          previously  filed as Exhibit  10.1 to  Registrant's  Form 10-Q for the
          period  ended June 30,  1996,  filed on August 14,  1996,  and same is
          incorporated herein by reference).

10(j)     Nonrecourse  Secured Promissory Note from Registrant to Cibola,  dated
          April 10, 1996.  (This  Exhibit has been  previously  filed as Exhibit
          10.2 to  Registrant's  Form 10-Q for the period  ended June 30,  1996,
          filed  on  August  14,  1996,  and  same  is  incorporated  herein  by
          reference).

10(k)     Security  Agreement  by and among  Registrant,  Cibola  and the Cibola
          shareholders,  dated April 10, 1996. (This Exhibit has been previously
          filed as Exhibit 10.3 to  Registrant's  Form 10-Q for the period ended
          June 30,  1996,  filed on August 14,  1996,  and same is  incorporated
          herein by reference).

10(l)     Tax Sharing Agreement by and among  Registrant,  Cibola and the Cibola
          shareholders,  dated April 10, 1996. (This Exhibit has been previously
          filed as Exhibit 10.4 to  Registrant's  Form 10-Q for the period ended
          June 30,  1996,  filed on August 14,  1996,  and same is  incorporated
          herein by reference).

10(m)     Guaranty  Agreement  between  Registrant  and Oklahoma  Bank and Trust
          Company,  dated as of June 7, 1999.  (This Exhibit has been previously
          filed as Exhibit 10(bb) to Registrant's Form 10-Q for the period ended
          June 30,  1999,  filed on August 20,  1999,  and same is  incorporated
          herein by reference).

10(n)     Letter Loan  Agreement  by and between  Registrant  and The William M.
          Beard and Lu Beard 1988  Charitable  Unitrust (the " Unitrust")  dated
          April 3, 2000.  (This  Exhibit  has been  previously  filed as Exhibit
          10(cc) to  Registrant's  Form 10-K for the period  ended  December 31,
          1999,  filed on April 14,  2000,  and same is  incorporated  herein by
          reference).

10(o)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust dated  September 1, 2000.  (This Exhibit has been  previously
          filed as Exhibit 10(o) to Registrant's  Form 10-Q for the period ended
          September  30,  2000,   filed  on  November  20,  2000,  and  same  is
          incorporated herein by reference).

10(p)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust dated March 31, 2001. (This Exhibit has been previously filed
          as Exhibit 10(p) to Registrant's  Form 10-Q for the period ended March
          31, 2001,  filed on May 21, 2001, and same is  incorporated  herein by
          reference).

10(q)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust dated June 30, 2001.  (This Exhibit has been previously filed
          as Exhibit 10(q) to  Registrant's  Form 10-Q for the period ended June
          30, 2001, filed on August 14, 2001, and same is incorporated herein by
          reference).

10(r)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust dated  September 30, 2001.  (This Exhibit has been previously
          filed as Exhibit 10(r) to Registrant's  Form 10-Q for the period ended
          September  30,  2001,   filed  on  November  19,  2001,  and  same  is
          incorporated herein by reference).

10(s)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust  dated January 15, 2002.  (This  Exhibit has been  previously
          filed as Exhibit 10(s) to Registrant's  Form 10-K for the period ended
          December 31, 2001,  filed on April 16, 2002, and same is  incorporated
          herein by reference).

10(t)     Amended  Letter  Loan  Agreement  by and  between  Registrant  and the
          Unitrust dated February 28, 2002.

10(u)     Promissory  Note from Registrant to the Trustees of the Unitrust dated
          April 3, 2000.  (This  Exhibit  has been  previously  filed as Exhibit
          10(dd) to  Registrant's  Form 10-K for the period  ended  December 31,
          1999,  filed on April 14,  2000,  and same is  incorporated  herein by
          reference).

10(v)     Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust dated  September 1, 2000.  (This Exhibit has been  previously
          filed as Exhibit 10(q) to Registrant's  Form 10-Q for the period ended
          September  30,  2000,   filed  on  November  20,  2000,  and  same  is
          incorporated herein by reference).

10(w)     Promissory  Note from Registrant to the Trustees of the Unitrust dated
          October 20, 2000.  (This Exhibit has been previously  filed as Exhibit
          10(w) to  Registrant's  Form 10-K for the period  ended  December  31,
          2000,  filed on April 2,  2001,  and same is  incorporated  herein  by
          reference).

10(x)     Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust dated March 31, 2001. (This Exhibit has been previously filed
          as Exhibit 10(t) to Registrant's  Form 10-Q for the period ended March
          31, 2001,  filed on May 21, 2001, and same is  incorporated  herein by
          reference).

10(y)     Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust dated June 30, 2001.  (This Exhibit has been previously filed
          as Exhibit 10(v) to  Registrant's  Form 10-Q for the period ended June
          30, 2001, filed on August 14, 2001, and same is incorporated herein by
          reference).

10(z)     Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust dated  September 30, 2001.  (This Exhibit has been previously
          filed as Exhibit 10(x) to Registrant's  Form 10-Q for the period ended
          September  30,  2001,   filed  on  November  19,  2001,  and  same  is
          incorporated herein by reference).

10(aa)    Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust  dated January 15, 2002.  (This  Exhibit has been  previously
          filed as Exhibit 10(z) to Registrant's  Form 10-K for the period ended
          December 31, 2001,  filed on April 16, 2002, and same is  incorporated
          herein by reference).

10(bb)    Renewal  Promissory  Note  from  Registrant  to  the  Trustees  of the
          Unitrust dated February 28, 2002.

10(cc)    Promissory Note from Registrant to the Trustee of the William M. Beard
          Irrevocable  Trust "B" (the "B Trust")  dated August 31,  2001.  (This
          Exhibit has been  previously  filed as Exhibit  10(y) to  Registrant's
          Form 10-Q for the period ended  September 30, 2001,  filed on November
          19, 2001, and same is incorporated herein by reference).

10(dd)    Promissory Note from Registrant to the Trustee of the William M. Beard
          Irrevocable  Trust "C" (the "C Trust")  dated August 31,  2001.  (This
          Exhibit has been  previously  filed as Exhibit  10(z) to  Registrant's
          Form 10-Q for the period ended  September 30, 2001,  filed on November
          19, 2001, and same is incorporated herein by reference).

10(ee)    Promissory  Note  from  Registrant  to  B  &  M  Limited,   a  General
          Partnership  ("B&M")  dated  August 31, 2001.  (This  Exhibit has been
          previously  filed as Exhibit 10(aa) to Registrant's  Form 10-Q for the
          period ended September 30, 2001,  filed on November 19, 2001, and same
          is incorporated herein by reference).

10(ff)    Promissory  Note from  Registrant  to Bank of Oklahoma,  N.A.  ("BOK")
          dated  August 30, 2000.  (This  Exhibit has been  previously  filed as
          Exhibit 10(r) to Registrant's Form 10-Q for the period ended September
          30, 2000, filed on November 20, 2000, and same is incorporated  herein
          by reference).

10(gg)    Extension  Promissory  Note from Registrant to BOK dated September 30,
          2000.  (This  Exhibit has been  previously  filed as Exhibit  10(s) to
          Registrant's  Form 10-Q for the period ended September 30, 2000, filed
          on November 20, 2000, and same is incorporated herein by reference).

10(hh)    Extension Promissory Note from Registrant to BOK dated March 15, 2001.
          (This  Exhibit  has  been   previously   filed  as  Exhibit  10(w)  to
          Registrant's  Form 10-Q for the period ended March 31, 2001,  filed on
          May 21, 2001, and same is incorporated herein by reference).

10(ii)    Extension  Promissory Note from Registrant to BOK dated June 30, 2001.
          (This  Exhibit  has  been   previously   filed  as  Exhibit  10(z)  to
          Registrant's  Form 10-Q for the period ended June 30,  2001,  filed on
          August 14, 2001, and same is incorporated herein by reference).

10(jj)    Guaranty Agreement between the Unitrust and BOK dated August 30, 2000.
          (This  Exhibit  has  been   previously   filed  as  Exhibit  10(t)  to
          Registrant's  Form 10-Q for the period ended September 30, 2000, filed
          on November 20, 2000, and same is incorporated herein by reference).

10(kk)    Guaranty  Agreement between W. M. Beard and BOK dated August 30, 2000.
          (This  Exhibit  has  been   previously   filed  as  Exhibit  10(u)  to
          Registrant's  Form 10-Q for the period ended September 30, 2000, filed
          on November 20, 2000, and same is incorporated herein by reference).

10(ll)    Asset Purchase and Sale Agreement among Testco Inc. de Mexico, S.A. de
          C.V. and ITS-Testco, LLC and PD Oilfield Services Mexicana, S. de R.L.
          de C.V., dated May 4, 2001. (This Exhibit has been previously filed as
          Exhibit 10(z) to Registrant's Form 10-Q for the period ended March 31,
          2001,  filed on May 21,  2001,  and  same is  incorporated  herein  by
          reference).

10(mm)    Asset  Purchase  and  Sale  Agreement  between  ITS-Testco,   LLC  and
          Inter-Tech Drilling Solutions,  Inc., dated May 4, 2001. (This Exhibit
          has been previously filed as Exhibit 10(aa) to Registrant's  Form 10-Q
          for the period ended March 31, 2001,  filed on May 21, 2001,  and same
          is incorporated herein by reference).

          *Compensatory plan or arrangement.



The Company will furnish to any  shareholder a copy of any of the above exhibits
upon the  payment  of $.25 per  page.  Any  request  should be sent to The Beard
Company,  Enterprise  Plaza,  Suite 320, 5600 North May Avenue,  Oklahoma  City,
Oklahoma 73112.

(b)  A report  on Form 8-K was  filed by the  Company  on March  28,  2002.  The
     matters reported  include recent  developments in the Company's Coal, China
     and  e-Commerce  Segments,  progress  in the McElmo  Dome  litigation,  the
     retention of an  investment  banking firm to handle a private  placement of
     notes to accredited  investors,  the effect of recent  developments  on the
     Company's liquidity, and the resignation of a director.


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                    (Registrant)   THE BEARD COMPANY

                                          HERB MEE, JR.
     (Date)   May 15, 2002          ___________________________________
                                          Herb Mee, Jr., President and
                                          Chief Financial Officer

                                          JACK A. MARTINE
     (Date)   May 15, 2002          ___________________________________
                                          Jack A. Martine, Controller and
                                          Chief Accounting Officer

<PAGE>
                                 EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No.      Description                            Method of Filing
-------  -----------                            ----------------
<S>     <C>                                    <C>
2(a)    Agreement  and Plan of  Reorganization Incorporated herein by reference
        by and  among  Registrant,  Beard  Oil
        Company  ("Beard  Oil") and New Beard,
        Inc.,  dated as of July 12,  1993 (see
        Addendum   A  to  Part  I,   which  is
        incorporated   herein  by   reference;
        schedules to the  Agreement  have been
        omitted).

2(b)    Agreement  and Plan of  Merger  by and Incorporated herein by reference
        between The Beard  Company and The New
        Beard   Company,   dated  as  of  2(b)
        September 16, 1997.

2(c)    Certificate   of  Merger  merging  The Incorporated herein by referencey
        Beard   Company  into  The  New  Beard
        Company as filed with the Secretary of
        State  of  Oklahoma  on  November  26,
        1997.

3(i)    Certificate  of  Incorporation  of The Incorporated herein by reference
        New Beard  Company  as filed  with the
        Secretary  of  State  of  Oklahoma  on
        September 11, 1997.

3(ii)   Registrant's  By-Laws as  currently in Incorporated herein by reference
        effect.

4(a)    Certificate of  Designations,  Powers, Incorporated herein by reference
        Preferences        and       Relative,
        Participating,    Option   and   Other
        Special      Rights,      and      the
        Qualifications,     Limitations     or
        Restrictions  Thereof  of the Series A
        Convertible  Voting Preferred Stock of
        the Registrant.

4(b)    Settlement Agreement, with Certificate Incorporated herein by reference
        of Amendment attached thereto,  by and
        among Registrant,  Beard Oil, New York
        Life Insurance Company,  New York Life
        Insurance  and Annuity  Company,  John
        Hancock Mutual Life Insurance Company,
        Memorial Drive Trust and Sensor, dated
        as of April 13, 1995.

10(a)   Amendment No. One to The Beard Company Incorporated herein by reference
        1993 Stock  Option  Plan dated  August
        27,  1993,  as  amended  June 4, 1998.
        (The  Amended  Plan   supersedes   the
        original  Plan  adopted  on August 27,
        1993.)

10(b)   Form  of   Indemnification   Agreement Incorporated herein by reference
        dated   December  15,  1994,   by  and
        between     Registrant    and    eight
        directors.

10(c)   The Beard  Company 1994 Phantom  Stock Incorporated herein by reference
        Units   Plan  as   amended   effective
        October 23, 1997.

10(d)   Amendment   No.  Three  to  The  Beard Incorporated herein by reference
        Company  Deferred  Stock  Compensation
        Plan  dated   November  1,  1995,   as
        amended October 24, 2001. (The Amended
        Plan   supersedes  the  original  Plan
        adopted on June 3, 1996.)

10(e)   Amended  and   Restated   Nonqualified Incorporated herein by reference
        Stock Option  Agreement by and between
        Richard  D.  Neely  and  ISITOP,  Inc.
        ("ISITOP"), dated November 12, 1998.

10(f)   Amended  and   Restated   Nonqualified Incorporated herein by reference
        Stock Option  Agreement by and between
        Jerry  S.  Neely  and  ISITOP,   dated
        November 12, 1998.

10(g)   Nonqualified Stock Option Agreement by Incorporated herein by reference
        and  between  Robert A.  McDonald  and
        ISITOP, dated November 12, 1998.

10(h)   Incentive  Stock  Option  Agreement by Incorporated herein by reference
        and  between  Philip  R.  Jamison  and
        Beard   Technologies,   Inc.  ("BTI"),
        dated May 18, 1998.

10(i)   Subscription  Agreement by and between Incorporated herein by reference
        Cibola   Corporation   ("Cibola")  and
        Registrant, dated April 10, 1996.

10(j)   Nonrecourse  Secured  Promissory  Note Incorporated herein by reference
        from Registrant to Cibola, dated April
        10, 1996.

10(k)   Security   Agreement   by  and   among Incorporated herein by reference
        Registrant,   Cibola  and  the  Cibola
        shareholders, dated April 10, 1996.

10(l)   Tax  Sharing  Agreement  by and  among Incorporated herein by reference
        Registrant,   Cibola  and  the  Cibola
        shareholders, dated April 10, 1996.

10(m)   Guaranty  Agreement between Registrant Incorporated herein by reference
        and Oklahoma  Bank and Trust  Company,
        dated as of June 7, 1999.

10(n)   Letter Loan  Agreement  by and between Incorporated herein by reference
        Registrant  and The  William  M. Beard
        and Lu Beard 1988 Charitable  Unitrust
        (the "Unitrust") dated April 3, 2000.

10(o)   Amended  Letter Loan  Agreement by and Incorporated herein by reference
        between  Registrant  and the  Unitrust
        dated September 1, 2000.

10(p)   Amended  Letter Loan  Agreement by and Incorporated herein by reference
        between  Registrant  and the  Unitrust
        dated March 31, 2001.

10(q)   Amended  Letter Loan  Agreement by and Incorporated herein by reference
        between  Registrant  and the  Unitrust
        dated June 30, 2001.

10(r)   Amended  Letter Loan  Agreement by and Incorporated herein by reference
        between  Registrant  and the  Unitrust
        dated September 30, 2001.

10(s)   Amended  Letter Loan  Agreement by and Incorporated herein by reference
        between  Registrant  and the  Unitrust
        dated January 15, 2002.

10(t)   Amended  Letter Loan  Agreement by and Filed herewith electronically
        between  Registrant  and the  Unitrust
        dated February 28, 2002.

10(u)   Promissory Note from Registrant to the Incorporated herein by reference
        Trustees of the  Unitrust  dated April
        3, 2000.

10(v)   Renewal     Promissory    Note    from Incorporated herein by reference
        Registrant  to  the  Trustees  of  the
        Unitrust dated September 1, 2000.

10(w)   Promissory Note from Registrant to the Incorporated herein by reference
        Trustees of the Unitrust dated October
        20, 2000.

10(x)   Renewal     Promissory    Note    from Incorporated herein by reference
        Registrant  to  the  Trustees  of  the
        Unitrust dated March 31, 2001.

10(y)   Renewal     Promissory    Note    from Incorporated herein by reference
        Registrant  to  the  Trustees  of  the
        Unitrust dated June 30, 2001.

10(z)   Renewal     Promissory    Note    from Incorporated herein by reference
        Registrant  to  the  Trustees  of  the
        Unitrust dated September 30, 2001.

10(aa)  Renewal     Promissory    Note    from Incorporated herein by reference
        Registrant  to  the  Trustees  of  the
        Unitrust dated January 15, 2002.

10(bb)  Renewal     Promissory    Note    from Filed herewith electronically
        Registrant  to  the  Trustees  of  the
        Unitrust dated February 28, 2002.

10(cc)  Promissory Note from Registrant to the Incorporated herein by reference
        Trustee   of  the   William  M.  Beard
        Irrevocable  Trust "B" (the "B Trust")
        dated August 31, 2001.

10(dd)  Promissory Note from Registrant to the Incorporated herein by reference
        Trustee   of  the   William  M.  Beard
        Irrevocable  Trust "C" (the "C Trust")
        dated August 31, 2001.

10(ee)  Promissory Note from Registrant to B & Incorporated herein by reference
        M  Limited,   a  General   Partnership
        ("B&M") dated August 31, 2001.

10(ff)  Promissory  Note  from  Registrant  to Incorporated herein by reference
        Bank of Oklahoma,  N.A.  ("BOK") dated
        August 30, 2000.

10(gg)  Extension    Promissory    Note   from Incorporated herein by reference
        Registrant to BOK dated  September 30,
        2000.

10(hh)  Extension    Promissory    Note   from Incorporated herein by reference
        Registrant  to  BOK  dated  March  15,
        2001.

10(ii)  Extension    Promissory    Note   from Incorporated herein by reference
        Registrant to BOK dated June 30, 2001.

10(jj)  Guaranty    Agreement    between   the Incorporated herein by reference
        Unitrust  and  BOK  dated  August  30,
        2000.

10(kk)  Guaranty Agreement between W. M. Beard Incorporated herein by reference
        and BOK dated August 30, 2000.

10(ll)  Asset   Purchase  and  Sale  Agreement Incorporated herein by reference
        among  Testco Inc. de Mexico,  S.A. de
        C.V.  and   ITS-Testco,   LLC  and  PD
        Oilfield Services Mexicana, S. de R.L.
        de C.V., dated May 4, 2001.

10(mm)  Asset   Purchase  and  Sale  Agreement Incorporated herein by reference
        between ITS-Testco, LLC and Inter-Tech
        Drilling Solutions, Inc., dated May 4,
        2001.
</TABLE>