Exhibit 10(q)

                                  June 30, 2001

                                     AMENDED
                              LETTER LOAN AGREEMENT


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

Gentlemen:

This Amended Letter Loan Agreement supersedes the previous Amended Letter Loan
Agreement between the parties hereto dated March 31, 2001.

This Amended Letter Loan Agreement sets forth the terms and conditions under
which we have agreed to extend a revolving loan to you in the principal amount
of $2,000,000.00 (the "Loan").

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

2.  BORROWER:        The Beard Company.

3.  AMOUNT:          Such amounts as the Borrower may request from time to
                     time up to $2,000,000.00.  The Loan shall be evidenced
                     by a promissory note in the amount of $2,000,000.00 dated
                     as of today (the "Note").  The Borrower shall be permitted
                     to obtain advances, make prepayments, and obtain
                     additional advances, up to the amount of the Note.

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

5.  REPAYMENT:       Accrued interest shall be due and payable semi-
                     annually, beginning December 31, 2001 and semi-
                     annually thereafter, with the outstanding principal
                     balance (the "Indebtedness") plus unpaid accrued
                     interest due and payable on June 30, 2003.

6.  COLLATERAL:      A.  Until the Indebtedness has been paid in full, the
                     Borrower agrees that it will not create, grant, assume
                     or suffer to exist any lien, mortgage or encumbrance
                     (a "Lien") on its working and overriding
                     royalty interests in the McElmo Dome Unit in
                     Montezuma and Dolores Counties of Colorado
                     ("Interests").  The Borrower will not sell,
                     transfer, convey or otherwise dispose of any of the
                     Interests, whether pursuant to a single transaction or a
                     series of  transactions.

                     B.  At any time while there is Indebtedness outstanding
                     under the Note, the Trustees of the Unitrust may
                     request, and the Borrower agrees to grant to the
                     Unitrust, a Lien on its Interests, and in such event
                     the Borrower will immediately furnish such Assignments,
                     Transfer Orders, Security Agreements or other documents
                     as the Trustees may require in order to secure the
                     Indebtedness.

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

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

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

                     B.  Any Event of Default as specified in the Note

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

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

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

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

Sincerely,

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

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

Accepted effective this 30th day of June, 2001.

BORROWER:
THE BEARD COMPANY

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