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 June 30, 1998
                                      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 July 31, 1998.


                   Common Stock $.001 par value - 2,565,739

<PAGE>
                               THE BEARD COMPANY

                                     INDEX




PART I. FINANCIAL INFORMATION                                    PAGE

Item 1.  Financial Statements

Balance Sheets - June 30, 1998 (Unaudited) and
  December 31, 1997

Statements of Operations - Three Months and Six Months
  ended June 30, 1998 and 1997 (Unaudited)

Statements of Shareholders' Equity, Year ended
  December 31, 1997 and Six Months ended
  June 30, 1998 (Unaudited)

Statements of Cash Flows - Six Months ended
  June 30, 1998 and 1997 (Unaudited)

Notes to Financial Statements (Unaudited)

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


PART II.  OTHER INFORMATION

Item 2.  Changes in Securities

Item 4.  Submission of Matters to a Vote of Security Holders

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

Signatures

<PAGE>

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
                     THE BEARD COMPANY AND SUBSIDIARIES
                                Balance Sheets
                June 30, 1998 (Unaudited) and December 31, 1997
<CAPTION>
                                                     June 30,       December 31,
                         Assets                       1998             1997
                                                  -----------      -------------
<S>                                               <C>              <C>
Current assets:
  Cash and cash equivalents                       $ 7,000,000      $ 13,955,000
  Accounts receivable, less allowance for doubtful
   receivables of $80,000 in 1998 and $75,000 in 
   1997                                             1,332,000         1,654,000
  Other receivables (note 2)                                -         1,000,000
  Inventories                                         374,000           227,000
  Prepaid expense                                     126,000            84,000
  Other assets                                        151,000            11,000
                                                  -----------      ------------
       Total current assets                         8,983,000        16,931,000
Investments and other assets                        1,725,000         1,580,000
Property, plant and equipment, at cost             34,006,000         6,247,000
  Less accumulated depreciation, depletion 
   and amortization                                 4,768,000         4,300,000
                                                  -----------      ------------
    Net property, plant and equipment              29,238,000         1,947,000
Intangible assets, at cost                            963,000           828,000
  Less accumulated amortization                       129,000           334,000
                                                  -----------      ------------
    Net intangible assets                             834,000           494,000
                                                  -----------      ------------
                                                  $40,780,000      $ 20,952,000
                                                  ===========      ============
       Liabilities and Shareholders' Equity
Current liabilities:
  Trade accounts payable                          $   401,000      $    533,000
  Accrued expenses (note 2)                         1,025,000           892,000
  Income taxes payable                                354,000           541,000
  Redeemable preferred stock purchase and redemption
   obligation                                               -         4,005,000
  Other obligations (note 2)                                -           900,000
  Current maturities of long-term debt              1,685,000           136,000
                                                  -----------      ------------
       Total current liabilities                    3,465,000         7,007,000
Long-term debt, less current maturities            25,189,000           519,000
Minority interest in consolidated subsidiaries        128,000           104,000
Redeemable preferred stock of $100 stated value; 
  5,000,000 shares authorized; 27,838 shares 
  issued and outstanding (note 4)                     889,000           889,000
Common shareholders' equity:
  Common stock of $.001 par value per share;
   10,000,000 shares authorized; 2,832,129 
   shares issued in 1998 and 1997                       3,000             3,000
  Capital in excess of par value                   37,911,000        37,911,000
  Accumulated deficit                             (25,286,000)      (23,962,000)
  Treasury stock, 303,890 shares, at cost          (1,519,000)       (1,519,000)
                                                  -----------      ------------
       Total common shareholders' equity           11,109,000        12,433,000
                                                  -----------      ------------
Commitments and contingencies (note 7)
                                                  $40,780,000      $ 20,952,000
                                                  ===========      ============
</TABLE>
                  See accompanying notes to financial statements.
<PAGE>
<TABLE>
                        THE BEARD COMPANY AND SUBSIDIARIES
                              Statements of Operations
                                    (Unaudited)
<CAPTION>
                                               For Three Months Ended        For Six Months Ended
                                               ----------------------       ---------------------
                                               June 30,       June 30,      June 30,        June 30,
                                                 1998            1997          1998            1997
                                               -------        -------       -------         -------
<S>                                          <C>            <C>            <C>            <C>            
Revenues:
  Coal reclamation                           $   631,000    $         -    $   631,000    $         -
  Interstate travel facilities                 1,022,000              -      1,307,000              -
  Carbon dioxide                                 157,000        138,000        317,000        256,000
  Environmental remediation                            -         13,000              -         13,000
  Other                                            9,000         15,000         17,000         24,000
                                             -----------    -----------    -----------    -----------
                                               1,819,000        166,000      2,272,000        293,000
Expenses:
  Coal reclamation (exclusive of
   depreciation, depletion and amortization
   shown separately below)                       228,000         30,000        263,000         61,000
  Interstate travel facilities
   (exclusive of depreciation, depletion
   and amortization shown separately below)      842,000              -      1,066,000              -
  Carbon dioxide (exclusive of depreciation,
   depletion and amortization shown separately
   below)                                         34,000         28,000         69,000         55,000
  Environmental remediation (exclusive
   of depreciation, and amortization 
   shown separately below)                        53,000         44,000         77,000         48,000
  Selling, general and administrative            802,000        265,000      1,239,000        554,000
  Depreciation, depletion & amortization          70,000         13,000         96,000         26,000
  Other, principally corporate                     8,000         10,000         14,000         16,000
                                             -----------    -----------    -----------    -----------
                                               2,037,000        390,000      2,824,000        760,000
Operating profit (loss):
  Coal reclamation                               281,000        (70,000)       212,000       (143,000)
  Interstate travel facilities                  (159,000)             -       (196,000)             -
  Carbon dioxide                                 115,000        104,000        232,000        190,000
  Environmental remediation                      (59,000)       (20,000)       (86,000)       (47,000)
  Other, principally corporate                  (396,000)      (238,000)      (714,000)      (467,000)
                                             -----------    -----------    -----------    -----------
                                                (218,000)      (224,000)      (552,000)      (467,000)
Other income (expense):
  Interest income                                107,000          2,000        244,000          4,000
  Interest expense                               (43,000)       (36,000)       (59,000)       (71,000)
  Gain (loss) on sale of assets                   (8,000)             -          4,000         50,000
  Equity in earnings of
   unconsolidated affiliates                      90,000        120,000        199,000        148,000
  Minority interest in operations of
   consolidated subsidiaries                      54,000              -         53,000              -
  Other                                          (60,000)       (51,000)      (109,000)       (76,000)
                                             -----------    -----------    -----------    -----------
Loss from continuing operations
 before income taxes                             (78,000)      (189,000)      (220,000)      (412,000)
Income taxes (note 6)                            (56,000)       (17,000)       (56,000)       (17,000)
                                             -----------    -----------    -----------    -----------
Loss from continuing operations                 (134,000)      (206,000)      (276,000)      (429,000)
Discontinued operations (note 2):
  Earnings (loss) from discontinued operations  (142,000)       227,000       (424,000)        26,000
  Estimated loss from discontinuing
   environmental services activities            (624,000)             -       (624,000)             -
                                             -----------    -----------    -----------    -----------
Earnings (loss) from discontinued operations    (766,000)       227,000     (1,048,000)        26,000
                                             -----------    -----------    -----------    -----------
Net earnings (loss)                          $  (900,000)        21,000     (1,324,000)      (403,000)
                                             ===========    ===========    ===========    ===========
Net earnings (loss) attributable to
 common shareholders                         $  (900,000)        21,000     (1,324,000)      (403,000)
                                             ===========    ===========    ===========    ===========
Net earnings (loss) per average common 
 share outstanding:
  Basic and diluted:
  Loss from continuing operations            $     (0.05)   $     (0.07)   $     (0.11)   $     (0.15)
  Earnings (loss) from discontinued operations     (0.31)          0.08          (0.41)          0.01
                                             -----------    -----------    -----------    -----------
  Net earnings (loss)                        $     (0.36)   $      0.01    $     (0.52)   $     (0.14)
                                             ===========    ===========    ===========    ===========
Weighted average common shares outstanding -
 basic and diluted                             2,528,000      2,799,000      2,528,000      2,799,000
                                             ===========    ===========    ===========    ===========
</TABLE>
                See accompanying notes to financial statements.
<PAGE>
<TABLE>
                         THE BEARD COMPANY AND SUBSIDIARIES
                         Statements of Shareholders' Equity
<CAPTION>
                                                                                                              Total
                                                            Capital in                                       Common
                                               Common       Excess of      Accumulated      Treasury     Shareholders'
                                                Stock       Par Value         Deficit         Stock          Equity
                                             -----------    -----------  --------------    ------------    ------------
<S>                                          <C>            <C>          <C>               <C>            <C>
Balance, December 31, 1996                   $     3,000    $41,629,000    $(32,976,000)   $          -   $  8,656,000
  Net earnings, year ended December 31, 1997           -              -       9,014,000               -      9,014,000
  Issuance of 33,055 shares of common stock            -         71,000               -               -         71,000
  Purchase of 303,890 shares of common stock           -              -               -      (1,519,000)    (1,519,000)
  Accretion of preferred stock                         -     (3,789,000)              -               -     (3,789,000)
                                             -----------    -----------    ------------    ------------    -----------
Balance, December 31, 1997                         3,000     37,911,000     (23,962,000)     (1,519,000)    12,433,000
  Net loss, six months ended June 30,
   1998 (unaudited)                                    -              -     ( 1,324,000)              -     (1,324,000)
                                             -----------    -----------    ------------    ------------    -----------
Balance, June 30, 1998 (unaudited)           $     3,000    $37,911,000    $(25,286,000)   $ (1,519,000)   $11,109,000
                                             ===========    ===========    ============    ============    ===========
</TABLE>

                             See accompanying notes to financial statements.
<PAGE>
<TABLE>
                        THE BEARD COMPANY AND SUBSIDIARIES
                              Statements of Cash Flows
                                     (Unaudited)
<CAPTION>
                                                 For the Six Months Ended
                                               -----------------------------
                                               June 30, 1998   June 30, 1997
                                               -------------   -------------
<S>                                            <C>             <C>
Operating activities:
  Cash received from customers                 $  4,149,000    $ 10,493,000
  Cash paid to suppliers and employees           (5,085,000)     (9,245,000)
  Interest received                                 301,000           6,000
  Interest paid                                     (96,000)       (199,000)
  Taxes paid                                       (244,000)              -
                                               ------------    ------------
       Net cash provided by (used in) 
       operating activities                        (975,000)      1,055,000
                                               ------------    ------------

Investing activities:
  Acquisition of property, plant and equipment   (1,441,000)       (904,000)
  Proceeds from sale of business                  1,000,000               -
  Proceeds from sale of assets                       45,000          58,000
  Purchase of minority interest                    (900,000)              -
  Acquisition of travel facilities, 
   net of cash acquired of $49,000                 (763,000)              -
  Other                                             (91,000)         22,000
                                               ------------    ------------
      Net cash used in investing activities      (2,150,000)       (824,000)
                                               ------------    ------------
Financing activities:
  Proceeds from line of credit and term notes       786,000       1,229,000
  Payments on line of credit and short-term notes  (611,000)     (1,783,000)
  Preferred stock repurchase                     (4,005,000)              -
                                               ------------    ------------
      Net cash used in financing activities      (3,830,000)       (554,000)
                                               ------------    ------------
Net decrease in cash and cash equivalents        (6,955,000)       (323,000)
Cash and cash equivalents at beginning of period 13,955,000         375,000
                                               ------------    ------------
Cash and cash equivalents at end of period     $  7,000,000    $     52,000
                                               ============    ============
</TABLE>
<PAGE>
<TABLE>
                        THE BEARD COMPANY AND SUBSIDIARIES
                               Statement of Cash Flows
                                     (Unaudited)

Reconciliation of Net loss to Net Cash Provided by (Used in) Operating 
Activities
<CAPTION>
                                                  For the Six Months Ended
                                              --------------------------------
                                              June 30, 1998     June 30, 1997
                                              -------------     -------------
<S>                                           <C>               <C>
Net loss                                      $ (1,324,000)     $   (403,000)
Adjustments to reconcile net loss to net cash
 provided by (used in) operating activities:
  Depreciation, depletion and amortization         276,000           734,000
  (Gain) loss on sale of assets                     22,000           (53,000)
  Equity in earnings of unconsolidated 
   affiliates                                     (199,000)         (148,000)
  Loss from discontinued operations                624,000                 -
  Impairment of assets                                   -            60,000
  Interest and other costs recognized
   on real estate project                                -           478,000
  Minority interest in operations of 
   consolidated subsidiaries                      (157,000)          (30,000)
  Other                                              7,000            96,000
  (Increase) decrease in accounts receivable, 
   prepaids and other current assets               274,000          (308,000)
  Decrease in inventories                           12,000           932,000
  Decrease in accounts payable, accrued
   expenses and other liabilities                 (510,000)         (303,000)
                                              ------------      ------------
       Net cash provided by (used in) 
        operating activities                  $   (975,000)     $  1,055,000
                                              ============      ============

Supplemental Schedule of Noncash Investing and Financing Activities:

  Purchase of travel facilities through the 
   sale of a subsidiary's common stock        $    181,000      $          -
                                              ============      ============
  Purchase of travel facilities through the 
   issuance of a debt obligation and assumption 
   of debt obligations                        $  1,743,000      $          -
                                              ============      ============
  Sale of inventory for a note receivable     $          -      $     87,000
                                              ============      ============
  Purchase of property, plant and equipment 
   through the issuance of debt obligations   $ 24,652,000      $          -
                                              ============      ============
</TABLE>
         See accompanying notes to financial statements.
<PAGE>

                          THE BEARD COMPANY AND SUBSIDIARIES
                              Notes to Financial Statements

(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 
footnote  disclosures  normally prepared  in accordance with
generally accepted accounting principles  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 Beard's 1997
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"). 
All  significant   intercompany transactions have been eliminated
in the accompanying financial statements. The Company owns 80% of
the outstanding common stock of Cibola Corporation, a natural gas
marketing company,  but  does  not  consolidate  the  assets,
liabilities, revenues or expenses of Cibola because Cibola's
assets  are controlled  by  the minority common stockholders and
preferred stockholders of Cibola.  The Company  earned $63,000
and $128,000 for the three and six-month periods ended June 30, 
1998,  respectively,  and $36,000 and $71,000 for the same
periods in 1997, of pretax income from its  ownership interest in
Cibola.

     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 statement of the results  for the interim periods
presented.

     The results  of  operations  for the three and six-month
periods ended June 30, 1998, are not necessarily indicative of
the results to be expected for the full year.

     The Company currently operates  within  four  segments:  
(1) the coal reclamation  ("CR") Segment, consisting of coal
reclamation activities  and services related to the Company's
patented Mulled Coal Technology (the "M/C Technology"),   (2) 
the  interstate  travel  facilities  ("ITF")  Segment, consisting
of businesses,  such  as  service  stations, convenience stores,
restaurants and a truck wash, geared to the needs of the
interstate highway traveler, (3) the carbon dioxide ("CO2")
Segment,  which  consists  of  the production  of  CO2  gas,  and 
(4)  the  environmental  remediation ("ER") Segment, consisting
of the remediation of creosote and polycyclic  aromatic
hydrocarbon  ("PAH") contamination.  The Company also owns 40% of
a joint venture involved in the extraction, production and sale
of crude iodine.

     The Company also operated in (i) the dry ice (solid CO2)
manufacturing and  distribution  business,  included  in  the 
CO2  Segment   which   was discontinued  through sale in  October 
of  1997  and  (ii)  the  environmental/resource recovery
("E/RR") Segment which the Company elected to restructure
pursuant to  a  plan adopted by the Company's Board of Directors 
in  August,  1998. (See note  2  below).   The resource recovery
activities conducted by Beard Technologies, Inc. and its 
affiliates  now  comprise the CR Segment of the Company.  The
environmental remediation activities  conducted  by ISITOP, Inc.
now  comprise the ER Segment.  As discussed in note 2 below, the 
Company's Board  of  Directors  adopted  a  formal  plan  to 
discontinue  its  other environmental  services  operations (the
"Other E/S Operations"), conducted principally by Whitetail 
Services,   Inc. ("Whitetail") and Horizontal Drilling
Technologies, Inc. ("HDT").

     The  Company  adopted  Statement  of  Financial  Accounting 
Standards ("SFAS") No. 130, "Reporting  Comprehensive  Income," 
on  January 1, 1998. SFAS  No. 130 was effective for fiscal years
beginning after  December  15, 1997.   SFAS  No.  130 
establishes  standards for reporting and display of
"comprehensive income" and its components in a set of financial
statements. It  requires  that  all  items that are required  to 
be  recognized  under accounting standards as components of
comprehensive income be reported in a financial statement that is 
displayed  with  the  same prominence as other financial
statements.  The Company had no comprehensive  income  as defined
by  SFAS  No.  130 during the three and six-months ended June 30,
1998  and 1997, therefore, a statement of comprehensive income
has not been presented in the accompanying financial statements.

(2)  Discontinued Operations

     In August,  1998,  the  Company's Board of Director's
adopted a formal plan to restructure the E/RR Segment  (see  note 
1) and to discontinue the Other E/S Operations.  Accordingly, the
results of the Other E/S Operations have  been  reported  as 
discontinued  for all periods  presented  in  the accompanying 
statements  of  operations.   Revenues   applicable   to  the
discontinued  Other  E/S  Operations  were  $618,000 and
$1,583,000 for the three  and  six-month  periods  ended  June 
30,  1998,  respectively,  and $1,316,000 and $2,512,000 for the
three and six-month  periods  ended  June 30,  1997,
respectively.  Losses from the discontinued Other E/S Operations
were $142,000  and  $424,000 for the three and six-month periods
ended June 30, 1998, respectively,  and  $57,000  and $220,000
for the same periods in 1997.

     As of June 30, 1998, the significant  assets  related to the
Other E/S Operations consist primarily of equipment and accounts 
receivable  with  a recorded value  of  $1,651,000.   The 
significant liabilities related to the Other E/S Operations
consist of trade  accounts  payables, accrued expenses and
long-term debt obligations totaling $661,000.

     Included in the accompanying statements of operations  for 
the  three and  six-months  ended June 30, 1998, is a $624,000
estimated loss expected from the discontinuation of the Other 
E/S Operations.  $534,000 of the loss represents the difference
in the estimated  amounts  to  be received from disposing of the
Other E/S Operations' assets and the assets' recorded values as
of June 30, 1998.  $455,000 of the loss represents anticipated
operating losses until disposal of such assets has been
completed.  Offsetting the expected losses is a $365,000 gain
from early extinguishment of an obligation to the former sole
shareholder of HDT.  The obligation was originally incurred by
the Company as a result of its acquisition of 80% of HDT's
outstanding common stock and was payable only from 80% of the
cash flows (prescribed under the Obligation Agreement) of HDT and
Whitetail.  The gain represents the discounted obligation balance
as of June 30, 1998.

     Subsequent to June 30, 1998, the Company has  sold  a 
portion  of the Other  E/S Operations equipment for a total price
of $437,000.  The Company anticipates disposing of the remaining
assets by June 30, 1999.

     In  October  1997, the Company sold the business and
substantially all of the assets of Carbonic Reserves, an
85%-owned subsidiary involved in the manufacturing and
distribution  of solid CO2 ("solid CO2 segment") for cash of 
$19,375,000  and  the  assumption  of  certain  liabilities 
valued  at $2,813,000 (the "Asset Sale").

     The gain on the Asset Sale  was  $11,014,000  (after
applicable income taxes of $522,000).  Results of operations of
the solid  CO2  segment  have been  reported  as  discontinued 
operations  for  the  three and six-month periods ended June 30,
1997 in the accompanying statements  of  operations. Revenues 
applicable to the discontinued solid CO2 Segment operations  were
$3,753,000  and  $6,553,000  for the three and six-month periods
ended June 30,  1997, respectively.  The earnings  from  the 
discontinued  solid  CO2 segment  were  $284,000  and  $246,000 
for the three and six-month periods ended June 30, 1997,
respectively.

     Pursuant  to  the  closing of the Asset  Sale,  the  Company 
received $18,375,000 in cash.  The remaining $1,000,000 cash
proceeds were held back (the "Holdback") to offset  certain  post
closing adjustments for a maximum of 150 days from the closing
date and  was included in other receivables on the balance sheet
as of December 31, 1997.  The Company received the entire
Holdback amount from the purchaser on March 12, 1998.

     Concurrent with the Asset Sale, the  Company  agreed  to 
purchase the Carbonic  Reserves minority shareholder's common
stock for $900,000,  which was paid by the Company in January
1998.  The stock purchase obligation was included in  other 
current obligations on the balance sheet as of December 31, 1997
and reduced the related gain.

     As of June 30, 1998,  the solid CO2 segment had no
significant assets. The significant liabilities  of  the solid
CO2 segment consisted of accrued income and sales taxes of
$307,000  and  approximately  $155,000 of accrued bonuses and
employee severance compensation.

(3)  Acquisitions; Operating Agreements

     ITF Segment

     On February 9, 1998, the Company, through a newly  formed 
subsidiary, Interstate Travel Facilities, Inc. ("ITF"), purchased
two travel facilities located  along  Interstate  Highway  I-40 
in  eastern  Oklahoma for a cash consideration  of $490,000. 
Both travel facilities are geared  toward  the needs of
interstate  highway travelers and each included a service
station, convenience  store and  a  restaurant.   The  fair 
value  of  identifiable tangible and intangible  net  assets 
acquired approximated $628,000 on the acquisition date.  The
excess of the fair  value  of the travel facilities' assets
acquired over the purchase price has been reallocated  among the
long-lived assets acquired.

     On  February 27, 1998,  ITF acquired two additional travel 
facilities and an undeveloped  parcel of land located along
Interstate Highway I-35 in central Oklahoma.  These travel
facilities are also geared toward the needs of interstate highway 
travelers.   The  first  travel  facility includes a service 
station,  convenience  store and a restaurant. The  second 
travel facility includes a service station  and a convenience
store.  The purchase price  consisted  of  cash of $322,000; a 
fifteen-year,  unsecured,  5.93% $544,000 promissory note, 
valued  at  $407,000  (discounted  using  a  10% interest  rate); 
the  assumption  by  ITF  of three mortgage notes payable
approximating $1,336,000, owed by the former  owner  of the
facilities; and 20% of the Company's ownership in ITF, valued at
$181,000.  The three notes assumed by ITF are secured by the
travel facilities' assets,  bear interest at rates ranging from
9% to 10.5%, and mature from 2010 through  2013.  The fair  value 
of  identifiable  tangible  and intangible net assets acquired
approximated  $1,489,000  on the acquisition  date.   The 
$757,000  excess purchase price over the fair value of the assets
acquired has been recorded as goodwill and is being amortized on
a straight-line basis over 15 years. 

     On May 20, 1998, ITF acquired the assets of a truck wash
located along Interstate  Highway I-44 in Tulsa,  Oklahoma  for 
$699,000.   The  facility consists of two inside  truck  washing
bays.  The Company financed $576,000 of the asset acquisition
with a  fifteen-year,  8.5%  promissory note.  The note is
secured by the acquired assets.  The fair value of the
identifiable tangible assets approximated $870,000 on the
acquisition  date.  The excess of the fair value of the assets
acquired over the purchase  price  has been reallocated among the
long-lived assets acquired.

CR Segment

     On  June  30,  1998,  the  Company, through a newly formed
subsidiary, Beard  Mining,  L.L.C.  ("BMLLC"),  acquired   coal 
fines  extraction  and beneficiation  equipment  ("the 
Equipment") located  at  six  coal  slurry impoundment  sites 
for  a  total purchase  price  estimated to be $24,000,000.  The
definitive purchase price cannot be ascertained until the seller
of the Equipment provides BMLLC with a final accounting of the
cost of certain components and installation of the Equipment. 
BMLLC is financing the purchase with a loan which requires
principal payments of approximately $136,000  a month through
July 1, 1999, at which time the remaining balance becomes due.  
The  note  is secured by the Equipment and bears interest at a
per annum rate of 8%.  BMLLC  and the noteholder   have   agreed  
to  discuss  alternative  permanent  financing arrangements which
could involve either a long-term loan from a third party or
conversion to a third party leasing arrangement.  BMLLC will
lease the Equipment to Beard Technologies, Inc. ("BTI"), which is
operating and  maintaining  the  Equipment and six briquetting
plants for six limited liability companies (the  "LLC's"),  each 
of  which is a subsidiary of the noteholder.  The noteholder has
released the Company  and BTI in connection with  any  claim 
resulting  from  the inaccuracy of any representation  or
warranty made by BMLLC in any loan document,  or  BMLLC's breach
or failure  to  perform  or  satisfy  any  covenant,  agreement,
obligation or condition in any loan document.  The monthly lease
payments  will equal the monthly  payments  due under the
promissory note (except the final  balloon payment) and are
reimbursed  costs  by  the  LLC's  under  BTI's  operating
agreements with the LLC's.

     Concurrently  with  BMLLC's  acquisition of the Equipment,
BTI entered into operating agreements with the  LLC's  to provide
services for which it is being compensated under a cost-plus
arrangement  pursuant  to  which  it will  receive  a  minimum 
profit  of  $100,000  per  month  so long as the contracts 
remain in effect.  The initial term of the operating  agreements
expires on December  31,  1998,  but  will  be  automatically 
extended for unlimited successive one year periods unless
terminated by either  party at least 60 days prior to the
expiration of any such period or for cause.  The Company  has
guaranteed  the  performance  of  BTI's  obligations  under  the 
operating agreements,  but  the  Company  has  no liability under
its guaranty unless BTI's  failure to perform resulted from 
BTI's  gross  negligence,  willful misconduct,  improper 
handling  or  disbursement  of  funds, or failure to refund  any
overpayment to BTI by any of the six LLC's.  The operating 
agreements provide that,  solely  for  determining BTI's
compensation thereunder, the agreements are deemed to have been
effective April 1, 1998.

     The above acquisitions have  been accounted for by the
purchase method and accordingly, the results of operations  of 
the  travel  facilities and other  acquired  assets  have  been 
included  in  the  Company's financial statements from their
acquisition dates.

     The  Company currently has been unable to obtain historical 
financial operating  information   relating   to   the  acquired 
travel  facilities. The  truck  wash  and  coal  fines extraction
and beneficiation  equipment  assets  acquired  were  either not
operating or not commercially operating during a material portion
of the three and six-month periods ended June 30, 1998. 
Accordingly, no pro forma financial information  has  been 
reported in the accompanying financial statements.   

(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.   The  Company's 
1998 operations  through  June  30 were  not sufficient   to 
begin  the  sharing  of  the  consolidated   net   income.
Accordingly, one-third  of  future  "consolidated  net income"
will accrete directly to preferred stockholders and reduce
earnings  per  common  share. 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)  Earnings (loss) Per Share

     Basic earnings (loss) per share data is computed  by 
dividing  income available  to  common shareholders by the
weighted average number of common shares outstanding  for  the 
period.   Diluted  earnings  (loss) per share reflects   the 
potential  dilution  that  could  occur  if  the  Company's
outstanding  stock  options  were  exercised (calculated using
the treasury method)  and if the Company's preferred  stock  were 
converted  to  common stock.

     Diluted  earnings  (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 provision  for income taxes for the three 
and  six-month  periods  ended  June  30, 1998 consists  of 
federal alternative minimum tax of $36,000 and state income  tax
of $20,000.  The Company provided $17,000 in alternative minimum
tax in the same periods in 1997.  There was no provision for
regular federal income taxes for the three and six-month periods
in  1998 and 1997 due to the availability of net operating loss
and other carryforwards.

     At  June  30,  1998,  the  Company estimates that it had the
following income  tax carryforwards available  for  future use
(in thousands):

                                         Expiration
                                            Date            Amount
                                         ----------        ---------
Federal regular tax operating loss
 carryforwards                            2004-2010         $ 52,620
Investment tax credit carryforward        1998-2000              441
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.


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, 1997  and 
results of operations for the quarter ended June 30, 1998
compared to the prior  year  second quarter and  the  six  months 
ended  June 30, 1998 compared to the prior year  six months. 
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 1997 Form 10-K.

     The Company currently operates within  four  segments:  (1) 
the  coal reclamation ("CR") Segment, consisting of coal
reclamation  activities  and services related to the Company's
patented Mulled Coal Technology (the "M/C Technology");   (2) 
the  interstate  travel  facilities  ("ITF")  Segment, consisting
of businesses,  such  as  service  stations, convenience stores,
restaurants and a truck wash, geared to the needs of the
interstate highway traveler; (3) the carbon dioxide ("CO2")
Segment,  which  consists  of  the production  of  CO2  gas;  and 
(4)  the  environmental  remediation ("ER") Segment, consisting
of the remediation of creosote and polycyclic  aromatic
hydrocarbon  ("PAH") contamination.  The Company also has other
operations, including a 40% minority-ownership investment in a
joint venture for the extraction, production and sale of crude
iodine.

     The Company also operated in (i) the dry ice (solid CO2)
manufacturing and distribution business, included in the CO2
Segment  which  was discontinued in  October  of 1997 and (ii)
the environmental/resource recovery  ("E/RR") Segment which the
Company restructured pursuant to a plan adopted by the Company's
Board of Directors in August, 1998.  The coal reclamation
activities conducted  by  Beard  Technologies,  Inc.  and Beard
Mining, L.L.C. now comprise  the  CR  Segment  of the Company. 
The environmental  remediation activities conducted by ISITOP, 
Inc.  now  comprise  the  ER  Segment.  As discussed  in  Note  2
to the financial statements, the Company's Board  of Directors
adopted a formal  plan  in  August, 1998 to discontinue the other
environmental services operations (the  "Other  E/S  Operations")
conducted principally   by   Whitetail   Services,   Inc.  and 
Horizontal   Drilling Technologies, Inc. 

Material changes in financial condition - June  30,  1998  as
compared with December 31, 1997.

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

                             June 30,          December 31,          Increase
                               1998                1997             (Decrease)
                           ----------          ------------        -----------
Cash and cash equivalents  $7,000,000           $13,955,000        $(6,955,000)
Working capital            $5,518,000           $ 9,924,000        $(4,406,000)
Current ratio               2.59 to 1            2.42 to 1

     During the first six months of 1998, the Company reduced 
its  working capital  by  $4.4  million  from  $9.9 million as of
December 31, 1997. The decrease was attributable, in part,  to 
the Company, through a subsidiary, acquiring four travel
facilities, an undeveloped  parcel  of  land,  and  a truck wash,
the purchase price of which included cash payments of $935,000.
See  further  discussion  of the travel facilities' acquisition
below.  The Company  also  used  cash  to acquire property, 
plant  and  equipment  of $1,318,000 during the six months, 
which  included replacing assets as well as remodelling three of
its newly acquired travel facilities.  The remaining reduction in
working  capital is a direct result  of operating losses
recognized by the Company's discontinued Other E/S Operations for
the first six months of 1998.  See further discussion of results
of operations below.

     In the  first  six  months  of  1998  the  Company  paid
$4,005,000 to repurchase and redeem 62,318 shares of its
mandatorily redeemable preferred stock.  The Company recorded the
estimated repurchase and  redemption  as a redeemable  preferred 
stock  purchase  obligation as of December 31, 1997. The Company
also paid $900,000 to purchase  the common shares of Carbonic
Reserves not owned by the Company and $190,000 in accrued bonus 
and employee severance compensation, which were recorded as other
obligations and accrued expenses as of December  31, 1997.  Such
payments were made pursuant to the terms of the agreement to 
sell  the  business  of  Carbonic Reserves.  On March 12, 1998, 
the  Company  received $1,000,000 of the  sales  price  of 
Carbonic Reserves which had been held back by the purchaser for a
period of 150 days after the closing of the  sale.   See  note  2
to the financial statements. These amounts accounted for 91% of
the $6,955,000  reduction  in  cash  and cash equivalents from
December 31, 1997 to June 30, 1998.

     In  February  of  1998,  the Company, through an 80% owned
subsidiary, Interstate Travel Facilities, Inc. ("ITF"), acquired
four travel facilities and  a parcel of land located along 
Interstate  Highway  I-40  in  eastern Oklahoma,  and  Interstate 
Highway  I-35  in central Oklahoma.  The travel facilities are
geared to the needs of interstate  highway travelers.  Three of
the travel facilities include a service station, convenience
store and a restaurant.  The fourth travel facility includes a 
service  station  and a convenience  store.   The purchase price
of the travel facilities consisted of  cash  of  $812,000, the 
issuance  of  debt  valued  at  $407,000,  the assumption of
three  mortgage  notes payable approximating $1,336,000, owed by
the former owner of the travel  facilities,  and  20%  of  the
Company's ownership  in  ITF,  valued at $181,000.  In May of
1998, ITF acquired  the assets of a truck wash  along  Interstate 
Highway I-44 in Tulsa, Oklahoma. The purchase price of $699,000
was financed  by  a cash payment of $123,000 and a promissory
note payable of $576,000.  See note  3  to  the  financial
statements.

     On  June  30,  1998,  the  Company, through a newly formed
subsidiary, Beard  Mining,  L.L.C.  ("BMLLC"),  acquired   coal 
fines  extraction  and beneficiation  equipment  ("the 
Equipment") located  at  six  coal  slurry impoundment sites for
a total purchase  price estimated to be $24,000,000.  The definitive
purchase price cannot be ascertained until the seller of the 
Equipment provides BMLLC with a final accounting of the cost
of certain components and installation of the Equipment.  BMLLC is
financing the purchase with a loan which requires principal
payments of approximately $136,000  a  month  through July 1,
1999, at which time the remaining balance becomes due.  The note
is secured by the Equipment and bears interest at a per annum
rate of 8%.   BMLLC  and the  noteholder  have  agreed  to 
discuss  alternative permanent financing arrangements which could
involve either a long-term loan from a third party or conversion
to a third party leasing arrangement.  BMLLC  will lease the
Equipment to Beard Technologies, Inc. ("BTI"), which is operating
and maintaining  the  Equipment  and six briquetting plants for
six limited liability companies (the "LLC's"),  each  of  which 
is a subsidiary of the noteholder.  The noteholder has released
the Company and  BTI in connection with  any  claim  resulting 
from  the inaccuracy of any representation  or warranty made by
BMLLC in any loan document,  or  BMLLC's breach  or failure  to 
perform  or  satisfy  any  covenant,  agreement, obligation or
condition in any loan document.  The monthly lease payments  will
equal the monthly  payments  due under the promissory note
(except the final  balloon payment) and are reimbursed  costs  by 
the  LLC's  under  BTI's  operating agreements with the LLC's.

     The   following  segments  made  capital  additions  of 
approximately $27,847,000  during the first six months of 1998,
as reflected in the table below:

Coal reclamation                               $   24,011,000
Interstate travel facilities                        3,722,000
Carbon dioxide                                         14,000
Environmental remediation                                   -
Other                                                 100,000
                                               --------------
                                               $   27,847,000
                                               ==============

     The Company financed $25,643,000 of the above capital
expenditures for the six months by  issuing  debt,  assuming 
debt  and  issuing  stock of a subsidiary.  See note 3 to the
financial statements. 

     The Company's cash reserves, cash flow and credit lines will
be adequate to fund the $875,000 of capital expenditures
projected for the Company  for the last six months of the year. 
The Company anticipates spending $500,000 on  a  coal  fines
plant in China which will utilize the Company's patented Mulled
Coal technology  during  this period.  Negotiations are currently
in progress in connection with this  project. The other $375,000
will be spent in the ITF Segment as the renovations  of  the 
travel facilities and truck wash are completed.

    The Company's decision to discontinue the Other E/S
Operations will have a beneficial impact on future operations and
liquidity  since  the  Company will  no longer be faced with the
necessity of funding the losses generated by  such  operations 
(see  note  2  to  the  financial  statements).   The coal plant
operating agreements entered  into  by  BTI,  which  will 
generate monthly operating profits  of  at  least  $100,000  to 
this subsidiary, have put BTI  on  an entirely new footing going
forward and  have  positioned it to move forward aggressively to
pursue the commercial development  of  its  patented Mulled Coal
technology both domestically and overseas (see note 3).

    The  sale  of  Carbonic  Reserves  in  October of 1997 has
continued  to provide the Company with significant liquid 
resources.   Future cash flows and availability of credit are
subject to a number of variables,  including continuing  private 
and  governmental  demand  for  coal  reclamation  and
environmental  remediation  services, continuing demand for CO2
gas and for the services provided by the  Company's  interstate
travel facilities.  The Company  anticipates  that its current
resources,  future  cash  flows  and enhanced availability of 
credit  due to the significant improvement in the Company's
balance sheet will enable  it to meet its planned operating costs
and capital spending requirements.

    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 June
30, 1998 as compared with the Quarter ended June 30, 1997.

    The loss for the  quarter  ended June 30, 1998 was $900,000,
compared to income of $21,000 for the second quarter of the prior
year.  The CR Segment reported a $351,000 increase in  operating 
profit  for  the quarter as BTI began billing for services for
the operation of six coal beneficiation  and briquetting  plants 
in  the  second  quarter  of  1998  under terms of its contracts 
with a large midwestern utility company.  The CO2  Segment  also
had  an  $11,000   increase  in  its  operating  margin  due  to 
continued improvement in revenue  from its interests in the
McElmo Dome field.  These improvements were offset  by  an 
operating  loss  in the interstate travel facilities segment of
$159,000 as a result of ongoing  renovations at three of its
travel facilities and minor renovations at its newly  acquired
truck wash.  The ER Segment also experienced an increase in
operating  losses  of $39,000  primarily  as a result of expanded
activities in seeking contracts for its PAH technology.   There
was a $158,000 increase in operating losses for the three months
ended  June  30,  1998  compared to the same period in 1997  in 
"Other",  primarily  corporate activities  of  the  Company,  due
principally to an increase in and a change in allocation  of 
certain  benefit  expenses among members of the consolidated
group.  As a result, the operating loss in the second quarter of
1998 was virtually the same as that in the same period in 1997.

    Operating results of the Company's four segments are
reflected below:

                                        1998                 1997
                                        ----                 ----
Operating profit (loss):
  Coal reclamation                  $  281,000            $ (70,000)
  Interstate travel facilities        (159,000)                   -
  Carbon dioxide                       115,000              104,000
  Environmental remediation            (59,000)             (20,000)
                                    ----------           ----------
       Subtotal                        178,000               14,000
  Other                               (396,000)            (238,000)
                                    ----------           ----------
         Total                      $ (218,000)           $(224,000)
                                    ==========           ==========

Coal reclamation

     Second quarter 1998 operations reflected an operating profit 
of $281,000 compared to a $70,000 loss for the 1997 second
quarter.  Starting  in April of 1998, Beard Technologies, Inc.
("BTI") began billing for its services in connection  with  the
operation of certain coal fines projects in Kentucky, Ohio,  and
West Virginia.   (See  discussion  of  operating  agreements  in
"Material  Changes  in  Financial  Condition"  and  note 3 to the
financial statements).  BTI has been retained as an independent
contractor to dredge, excavate, recover, remove and extract mine
waste contained  in  coal slurry impoundments  at  six sites in
the above states.  The projects involve  the recovery of
particles of coal that are a wasted by-product of previous coal
mining, and the chemical processing of those particles to create
briquettes for sale into existing  coal  markets.   All  of  the
segments' $631,000 in revenues for the six months ended June 30,
1998, were  billed in the second quarter  of 1998.  The segment
had no revenues for the quarter  ended  June 30, 1997.  The
segment incurred $228,000 of operating expenses and $120,000 of
SG&A expenses  in  the  second  quarter  of  1998 compared to
$30,000 of operating expenses and $38,000 of SG&A expenses for
the same period in 1997 as BTI expanded its staffing and scope of
operations to meet the demands of the  contracts.   Approximately 
$24,000  of the SG&A  expenses  were  non-reimbursable  legal 
costs  incurred  in connection  with  the  coal  fines
agreements.

Interstate travel facilities

     The second quarter of 1998 was the  first  full  quarter 
for  the ITF Segment  as  the  initial  four properties were
acquired in February, 1998. Revenues for the segment were 
$1,022,000  for  the three months ended June 30,  1998.   Three 
of  the  four  travel  facilities  underwent  extensive
renovations  and remodeling during all or a part of the second 
quarter  of 1998.  After its  acquisition  in  May, 1998, the
newly acquired truck wash also began some minor refurbishing. 
This had a negative impact on revenues as those facilities were
not fully operational  for the entire quarter.  In addition,  the 
truck  wash  reflected  normal  startup  losses  of  a  new
operation.  The segment incurred $842,000 of operating  costs 
and $284,000 of SG&A expenses during the second quarter of 1998.

Carbon dioxide

     Second  quarter  1998  operations  reflected  an  operating
profit  of $115,000 compared to a $104,000 profit for the 1997
second 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 increased $19,000 or 14% to $157,000 for the
second quarter of 1998  compared  to $138,000 for the same period
in 1997.  This increase was due to increased production of
569,000 MCF of CO2 gas in the second quarter of 1998 compared  to 
production of 421,000 MCF in the same period in 1997. The
production increase  was  due  to the development program in the
McElmo Dome field in Colorado which was begun  in  1996  and  is
now winding down. The segment experienced increases in operating
costs, also  attributable to the development program, of $6,000
for the second quarter of  1998 compared to the same period in
1997.

Environmental remediation

     The ER Segment generated a larger operating loss in the
second quarter of 1998 as compared with the same period in 1997. 
The segment  recorded no revenues  in  the  second  quarter of
1998 compared to $13,000 in the  same period of 1997.  The 1997
revenues  were  the result of the segment's first field test of
its chemical process.  Since  that time personnel employed in the
segment have been involved in expanding the  market for the
process and the chemical product involved by demonstrating the 
benefits of the process to potential customers.  The segment has
hired a consultant  who  had  been heavily involved in the
marketing process and who, subsequent to the end of the  quarter, 
has  joined  the  staff  full  time.   The  additional costs
associated  with the increased effort has led to an increase  in 
operating expenses of approximately  $9,000,  and  an  increase 
of  SG&A expenses of $17,000 for the second quarter of 1998
compared to the same period in 1997.

Other activities

     Other  operations,  consisting  principally  of general and 
corporate activities,  generated  a  $158,000 larger operating
loss  for  the  second quarter of 1998 than the same  period of
last year.  The primary reason for the increase in the loss is
due  to  an increase in and a change in allocating certain
benefit expenses among various members of the  consolidated
group.  Certain medical expenses  were  previously  billed  to 
the various  subsidiaries  and  the practice was not continued
for the second quarter of 1998.
 
Selling, general and administrative expenses

     The Company's selling, general and administrative expenses
("SG&A") in the current quarter increased to $802,000  from
$265,000 in the 1997 second quarter.   The  new ITF Segment
accounted for  $284,000,  or  53%,  of  the $537,000 increase.  
The  CR  Segment  had  an increase in SG&A expenses of $82,000 
due to increased staffing and administrative  expenses  and 
legal costs incurred  to  meet  the demands of the contracts
relating to the coal projects  in the Appalachian  region  of 
the  country.    The  ER  Segment incurred increased  SG&A
expenses of $17,000 for the second quarter of 1998 compared to
1997 as a  result  of  its  increased  efforts  to  market  its
technology  and products.  Other operations incurred
approximately $181,000 more in SG&A  for the second quarter of
1998 compared to the same period in 1997 as a result of the
change in allocating benefit expenses among members of the group.

Depreciation, depletion and amortization expenses

     The second  quarter  of  1998  reported an increase in DD&A
expense of $57,000, reflecting additions to property,  plant  and
equipment made since June 30, 1997, primarily in the new ITF
Segment.

Other income and expenses

     Other income and expenses netted to a total income of
$140,000 for the second quarter of 1998, up sharply from the
$35,000  in income recorded for such items in the same period of
1997.  Interest income was up $105,000 for the second quarter of
1998 compared to the same period  in  1997 reflecting the income
from investments in commercial paper of cash realized  from  the
sale of the assets of Carbonic Reserves.  Interest expense was up
$7,000 as a  result  of  the  increase in debt associated with
the acquisition of the travel facilities during  the  first  six
months of 1998.  The Company's ITF subsidiary is 80% owned.  The
minority shareholder's share of the net loss of the subsidiary
was $54,000 for the second quarter of 1998.  The subsidiary did
not commence operations until February, 1998.  The  decline  in 
other  expenses  included a reduction in impairments of other
assets in the amount of $30,000  for  the second  quarter of 1998
compared to the same period in 1997.  The Company's equity in 
the  earnings  of  unconsolidated  affiliates, including a joint
venture for the extraction, production and sale  of  crude 
iodine  and  an investment  in  a natural gas marketing company,
was $90,000 for the second quarter of 1998 compared to $120,000
for the same period in 1997.

Income taxes

     The Company provided for federal alternative minimum tax
expense of $36,000 and state income tax expense of $20,000 for
the second quarter of 1998 compared to $17,000 in state income
tax expense in the same period in 1997.  The Company has not
provided for regular federal income taxes due to the availability
of net operating loss and other carryforwards.  The state income
provision for 1998 relates to profitable operations begun by the
CR Segment in new states in the second quarter of 1998.

Discontinued operations

     In October of 1997 the Company sold the business and
substantially all of the assets of  Carbonic Reserves, an
85%-owned subsidiary engaged in the manufacture and distribution 
of  solid CO2 for cash of $19,375,000 and the assumption of
certain liabilities valued  at  $2,813,000.   The gain on the
sale  was  $11,014,000 after deducting income taxes of $522,000.  
Revenues applicable to and the earnings from the discontinued
operations of Carbonic Reserves were $3,753,000 and $284,000,
respectively, for the second quarter of 1997.

     In August  of  1998, the Company's Board of Directors
adopted a formal plan to dispose of the Other E/S  Operations. 
The Company estimated that  it  will incur a loss of $624,000 
from discontinuing such activities.  The entire loss was recorded
in the second  quarter  of  1998 and represented the difference
between the estimated amounts to be received  from  disposing  of 
the assets involved and the assets' recorded values as of June
30, 1998 and certain estimated  costs of operations  pending
disposal of the assets.  Such losses were partially offset by  a
$365,000  gain recognized by the Company from the extinguishment 
of debt resulting from the discontinuance of the Other E/S
Operations.  Revenues applicable to discontinued operations  were 
$618,000  and  $1,316,000  for  the three months  ended  June 30,
1998 and 1997, respectively.  Losses applicable  to discontinued
E/S Operations  were  $142,000  and  $57,000  for the three
months ended June 30, 1998 and 1997, respectively. 

Material changes in results of operations - Six months ended 
June 30, 1998 as compared with the Six months ended June 30,
1997.

     The  loss  for  the  six  months  ended  June 30, 1998 was
$1,324,000, compared to a loss of $403,000 for the first six 
months of the prior year. $1,048,000 of the loss for the first
half of 1998 related  to  discontinued operations.  Continuing
operations  posted a net loss of $276,000 after taxes of $56,000
compared to a loss of $429,000  after  taxes of $17,000 for the
same period in 1997.

     Operating results of the Company's four segments are
reflected below:

                                          1998            1997
                                      ------------  ------------
Operating profit (loss):
  Coal reclamation                    $    212,000  $   (143,000)
  Interstate travel facilities            (196,000)            -
  Carbon dioxide                           232,000       190,000
  Environmental remediation                (86,000)      (47,000)
                                      ------------  ------------
        Subtotal                           162,000             -
  Other                                   (714,000)     (467,000)
                                      ------------  ------------
          Total                        $  (552,000) $   (467,000)
                                      ============  ============

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

     Coal reclamation

     Operations for the first six months of  1998  resulted in an
operating profit of $212,000 compared to a $143,000 loss for the
same period in 1997. As noted previously, BTI began billing,
effective April  1,  1998,  for its services  pertaining  to  the
operation of six coal projects in the eastern United States.  All
of BTI's  $631,000 in revenues for the six-month period in 1998
were billed in the second  quarter.   BTI  had  no billings for
the same period in 1997.  BTI incurred $263,000 of operating 
costs in the six-month period ending June 30, 1998, compared to
$61,000 for  the same period in  1997.   The  increase  was  due 
to  increased  staffing  and increased expenditures  for 
chemicals  and  supplies  to  operate the plants at  the several
sites.

     Interstate travel facilities

     The segment incurred $196,000 in operating losses during the
first six months of 1998.  The principal operating assets were 
acquired  in February and May of 1998; accordingly, the Company
did not recognize operations for the  full six months  of  1998.  
ITF  also renovated three of the four travel facilities during
this period which reduced  the  facilities'  hours of full
operation and negatively impacted ITF's profitability for the six 
month period.  ITF recorded revenues of $1,307,000 during the
period.  Operating  expenses  of $1,066,000,  SG&A  expenses  of
$372,000, and depreciation and amortization expenses of $65,000
resulted in the operating loss.

     Carbon dioxide

     Operations for the first  six  months of 1998 resulted in an
operating profit of $232,000 compared to a $190,000  operating 
profit  for  the 1997 first half.  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 increased $61,000 or 24% to $317,000 for the
first six months of 1998 compared  to $256,000 for the same
period in 1997.  This increase was due to increased production of
1,133,000 MCF of CO2 gas in the first six months of 1998 compared 
to production of 887,000 MCF in the same period in 1997.  The
production increase was due to the development program in the
McElmo Dome field in Colorado  which  was  begun  in 1996 and is
now winding down.

     Environmental remediation

     The  ER  Segment's operating loss increased $39,000  for 
the first six months  of  1998  as  compared  to  the same period
in 1997.  The segment recorded no revenues in the first half of
1998 compared to $13,000 in the same period of 1997.  The 1997
revenues were  the  result  of the first field test of its
chemical process.  Since that time personnel employed  in the 
segment have been involved in expanding the market for the
process and the chemical  product involved by demonstrating the
benefits of the process to potential customers.  The segment has
hired a consultant who, subsequent to the end of the  quarter,
has joined the staff full time and who has been heavily involved
in the marketing process.  The additional costs associated with
the increased marketing  efforts  has  led to an increase in
operating expenses of approximately $29,000 for the six  months 
of  1998 compared to the same period in 1997.

     Other activities

     Other  operations,  consisting  principally  of general and 
corporate activities, generated a $247,000 increase in  operating 
loss for the first half of 1998 as compared to the same period
last year.  The  primary reason for the increased loss was an
increase in and a change in allocating certain benefit expenses
among  various members of the consolidated group.  Certain
medical expenses were previously  billed  to  the  various 
subsidiaries in the consolidated group and the practice was not
continued for  the first six months of 1998. Additionally, the
segment has incurred higher travel  costs  as it seeks to promote 
other  segments'  technologies  to  new customers and to seek 
new investment opportunities.

     Selling, general and administrative expenses

     The Company's selling, general and administrative expenses
("SG&A") in the first half of 1998 increased to $1,239,000  from 
$554,000  in the 1997 six  months.  The acquisition of ITF
resulted in $372,000, or 54%,  of  the $685,000  increase.   The 
CR  Segment  had an increase in SG&A expenses of $71,000 due to
increased staffing and operations to meet the demands of the
contracts relating to the coal projects in  the  Appalachian 
region of the United  States.  Other operations incurred
approximately $242,000  more  in SG&A for  the  second  quarter 
of 1998 compared to the same period in 1997 primarily as a result
of the change  in  allocating  benefit expenses among members of
the group.

     Depreciation, depletion and amortization expenses

     The  first  half  of  1998  reported  an increase in DD&A 
expense  of $70,000, reflecting additions to property, plant  and 
equipment made since June 30, 1997, primarily in the ITF and CO2
segments. 

     Other income and expenses

     The other income and expenses for the first six months of
1998 netted to a total income of  $332,000 compared to $55,000 in
net income  for the same period in 1997.  Interest income was up
$240,000 for the for the first half of  1998  compared  to  the
same period in 1997 reflecting the income  from investments in
commercial  paper  of  cash  realized  from  the sale of the
assets of Carbonic Reserves.  Interest expense was down $12,000 
also  as a result  of  the  decreased  levels of debt outstanding
during the six-month period ended June 30, 1998 compared  to  the 
same  period  in  1997.  The Company's ITF subsidiary is 80%
owned.  The minority shareholder's share of the net loss the
subsidiary was $53,000 for the six-month period ended June 30,
1998.  The subsidiary did not commence operations until February,
1998.  The Company's equity in the earnings of unconsolidated
affiliates  was  up  $51,000  for the first six months of 1998
compared to the same period in 1997.  The joint venture engaged
in the production  and  sale  of  crude iodine, in which the 
Company  has  a  40% interest, contributed an additional  $19,000 
in  income for the period and the Company's investment in a
natural gas marketing  company contributed an additional $41,000
in income for the first half of 1998.   Offsetting these
increases  was a decline of $46,000 in the gain on sale of assets 
for  the first half of 1998 compared to the first half of 1997.

     Income taxes

     The Company provided for federal alternative minimum tax
expense of $36,000 and state income tax expense of $20,000 for
the first half of 1998 compared to $17,000 in state income tax
expense in the same period in 1997.  The Company has not provided
for regular federal income taxes due to the availability of net
operating loss and other carryforwards. The state income tax
provision for 1998 relates to profitable operations begun by the
CR Segment in new states in the second quarter of 1998.

     Discontinued operations

     In October of 1997 the Company sold the business and
substantially all of the assets of Carbonic Reserves, an 85%-
owned subsidiary engaged in the manufacture and distribution of
solid CO2 for cash of $19,375,000 and the assumption of certain
liabilities valued at $2,813,000.  The gain on the sale was
$11,014,000 after deducting income taxes of $522,000.  Revenues
applicable to and the earnings from the discontinued operations
of Carbonic Reserves were $6,553,000 and $246,000, respectively,
for the first half of 1997.

     In August of 1998, the Company's Board of Directors adopted
a formal plan to dispose of the Other E/S Operations.  The
Company estimated that it will incur a loss of $624,000 from
discontinuing such activities.  The entire loss was recorded in
the second quarter of 1998 and represented the difference between
the estimated amounts to be received from disposing of the assets
involved and the assets' recorded values as of June 30, 1998 and
certain estimated costs of operations pending disposal of the
assets.  This loss was partially offset by a $365,000 gain
recognized by the Company from the extinguishment of debt
resulting from the discontinuance of the Other E/S Operations. 
Revenues applicable to discontinued operations were $1,583,000
and $2,512,000 for the six months ended June 30, 1998 and 1997,
respectively.  Losses applicable to discontinued E/S Operations
were $424,000 and $220,000 for the six months ended June 30, 1998
and 1997, respectively.

     Impact of Recently Issued Accounting Standards Not Yet
Adopted

     In June 1998,  the Financial Accounting Standards Board
issued Statement of  Financial  Accounting  Standards  ("SFAS") 
No.  133,  "Accounting  for Derivative Instruments  and  Hedging 
Activities."  SFAS No.133 establishes accounting  and  reporting
standards for derivative instruments,  including certain
derivative instruments embedded in other contracts, and for
hedging activities.  It requires  an  entity to recognize all
derivatives as either assets or liabilities in the statement  of 
financial  position and measure those  instruments  at  fair 
value.   If  certain conditions  are  met,  a derivative may be
specifically designated as  a hedge.   The accounting for changes 
in  the fair value of a derivative (that  is,  gains  and 
losses) depends  on  the   intended   use  of  the  derivative 
and  the  resulting designation.  SFAS No. 133 is effective  for 
all fiscal quarters of fiscal years beginning after June 15,
1999.  It is expected  that the Company will adopt  the 
provisions  of  SFAS  No.  133 as of January 1, 2000.   If  the
provisions of SFAS No. 133 were to be applied as of June 30,
1998, it would not have a material impact on the Company's 
financial  position as of such date, or the results of operations
for the six month period then ended.

     In April 1998, the American Institute of Certified Public
Accountants issued Statement of Position ("SOP") 98-5, "Reporting
on the Costs of Start-up Activities."  SOP 98-5 establishes
reporting standards for start-up and organization costs.  It
broadly defines start-up activities and requires an entity to
expense costs of start-up activities and organization costs as
they are incurred.  SOP 98-5 is effective for financial
statements issued for fiscal years beginning after December 15,
1998.  The Company will adopt the provisions of SOP 98-5 as of
January 1, 1999.  The Company does not expect the adoption of the
provisions of SOP 98-5 to have a material impact on the Company's
future financial position or results of operations.

     In June 1997, the Financial Accounting Standards Board 
issued Statement of Financial Accounting Standards No. 131,
"Disclosures about  Segments  of an  Enterprise  and  Related 
Information."   SFAS No. 131 requires that an enterprise report
certain information about the  revenues  that  it derives from 
each of its products and services (or groups of similar products 
and services)  and  about  the  countries  in which it earns
revenues and holds assets, regardless of how the enterprise  is 
organized.   SFAS  No. 131 is effective for financial statements
issued for fiscal years beginning  after December  15,  1997.  
The  Company  will  report  the required information beginning
with its financial statements for the fiscal year ending December
31, 1998.

     Impact of Year 2000 Issue

     Companies that use computers face an issue as the  year 2000
draws near. The  problem  is  due to a common programming
practice of  using  only  two digits to represent a year. 
Without proper modification, for example, many programs may
interpret  the  year  2000  as the year 1900.  During the year
1998, the Company will install the proper  commercial software
releases and upgrades to its hardware, as necessary, to become
year 2000 compliant.  The Company anticipates that these expenses
will not be material.

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  instrument  governing  the  rights  of  the  preferred  stockholders.
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 4
to the accompanying financial statements.

Item 4.   Submission of Matters to a Vote of Security Holders.

     Commencing on April 30, 1998, proxies were solicited  on behalf of the
Board  of  Directors of the Company in connection with the Company's Annual
Meeting of Stockholders.

   (a)  This annual meeting was held on June 4, 1998(1).

   (b)  The  business  of  the  meeting  included the election of Harlon E.
Martin, Jr. and Herb Mee, Jr. to serve as directors for three year terms or
until their successors have been elected and qualified.

     In addition, the following persons continue  to serve as directors for
terms expiring on the dates indicated or until their successors have  been
elected and qualified:

  W. M. Beard (1999)        Allan R. Hallock (2000)     Ford C. Price (2000)

     In addition to the above, Michael E. Carr, elected in 1994 to serve as a
director  by  the  preferred stockholders, will continue to serve until his
successor has been elected and qualified.

     The table below sets forth the voting for election of directors:

                                                                  
                                                                      Broker
                       Votes       Votes       Votes                ---------
Name of Nominee         For       Against    Withheld  Abstentions  Non-Votes
---------------       ---------   -------    --------  -----------  ---------
Harlon E. Martin, Jr. 2,418,591      -0-        5,661        -0-      246,779
Herb Mee, Jr.         2,418,492      -0-        5,760        -0-      246,779

   (c) The business of the  meeting  also included a proposal to approve an
Amendment to The Beard Company 1993 Stock Option  Plan which was adopted by
the Board of Directors in April 1998 subject to stockholder approval.  The
table below sets forth the voting for such proposal: 

   Votes       Votes                  Broker
    For       Against   Abstentions  Non-Votes
   -----      -------   ----------   ---------

 2,356,054    67,243        955       246,779

   (d) At the meeting the stockholders also voted to approve the appointment
of KPMG Peat Marwick  LLP  as  independent certified public accountants  for
fiscal 1998.

                                                 Broker
   Votes       Votes      Votes                  ------
    For       Against   Withheld   Abstentions  Non-Votes
 ---------    -------   --------   -----------  ---------

 2,416,460     4,716       -0-        3,076      246,779
________

   (1)   2,424,252 votes (90.76%  of  those  eligible)  were  cast  at  the
meeting, including  2,281,460  of  2,528,239 eligible votes (90.24%) by the
common stockholders and 142,792 of 142,792  eligible votes (100.00%) by the
preferred stockholders.

Item 5.  Other Information

     Discretionary Voting of Proxies at Annual Meeting.  The Company will
exercise discretionary authority  to vote  proxies  at the Company's next 
annual meeting of shareholders on any shareholder  proposal for which the 
shareholder has not requested inclusion in the  Company's proxy statement
unless the shareholder notifies the Company of the proposal and the share-
holder's intention to present the proposal from  the floor of the meeting 
not later than March 16, 1999.

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 by reference).

2(b)   Agreement and Plan of Merger by and  between  The  Beard Company and 
       The New Beard  Company,  dated  as  of  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 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 incorpo-
       rated by reference).

2(d)   Asset  Purchase  Agreement  by and among Airgas Carbonic Reserves,  Inc.
       ("Airgas"), and Registrant,  Carbonic Reserves ("Carbonics"), and 
       Clifford H. Collen, Jr. ("Collen"). (This  Exhibit  has been pre-
       viously filed as Exhibit A,  filed  on  September  11, 1997  to 
       Registrant's  Proxy  Statement  dated September 12, 1997, and same 
       is incorporated by reference).

2(e)   Asset Purchase Agreement by and among Registrant, Toby B. Tindell, 
       Cristie R. Tindell and Interstate Travel Facilities,  Inc. ("ITF"), 
       dated as of February 27,  1998.   (This  Exhibit  has been  previously 
       filed  as  Exhibit  2  to Registrant's Form 8-K, filed on March 16,  
       1998,  and same is incorporated 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 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)   Agreement of Sale and Purchase by and between Beard Oil and Sensor Oil & 
       Gas, Inc. ("Sensor"). (This Exhibit has been previously filed as Addendum
       B to Amendment No. 1, filed on September  3,  1993  to Registrant's  
       Registration Statement on Form S-4, File No. 33-66598, and same is 
       incorporated by reference).

4(b)   Certificate of Designations, Powers, Preferences and Relative, Partici-
       pating, 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  by reference).

4(c)   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 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 pre-
       viously been filed as Exhibit A, filed on April 30, 1998 to Registrant's
       Proxy  Statement  dated April 30, 1998, and same is incorporated by 
       reference).*

10(b)  The Beard Company  1994  Phantom  Stock  Units Plan adopted November 1, 
       1994. (This Exhibit has been  previously  filed  as Exhibit  10(h) to 
       Registrant's Form 10-K for the period ended December 31, 1994, filed 
       on April 17, 1995, and same is incorporated by reference).*

10(c)  Stockholders'  Agreement made as of January 27, 1993 by and among 
       Registrant, Carbonics and Collen.  (This  Exhibit  has been  
       previously filed as Exhibit 10(i) to Registrant's Form 10-K for the 
       period ended December 31, 1994, filed on April 17, 1995, and same is 
       incorporated by reference).*

10(d)  Stock  Purchase  Agreement  dated  as  of  December  15, 1991  by  and  
       among Registrant  (formerly  known  as  Beard  Investment Company),  
       Carbonics  and Collen.  (This Exhibit has been previously filed  as   
       Exhibit  10.9  of Item 14(a)  to Beard Oil's Form 8, Amendment No. 1, 
       Form 10-K for the fiscal  year ended December 31, 1991 and same is 
       incorporated herein by reference).*

10(e)  Conversion  Agreement  dated  as of January 31, 1995 by and among 
       Registrant, Carbonics and Collen.  (This Exhibit  has been  previously
       filed as Exhibit 10(k) to Registrant's Form 10-K for the period ended 
       December 31, 1994, filed on April 17, 1995, and same is incorporated 
       herein by reference).*

10(f)  Employment Agreement dated April 3, 1995 by and among Registrant,  
       Carbonics, Collen  and  Beard  Oil.  (This  Exhibit has been previously 
       filed as Exhibit 10(l) to Registrant's Form 10-K for the period ended 
       December 31, 1994, filed on April 17, 1995, and same is incorporated 
       herein by reference).*

10(g)  The Beard Company Deferred Stock Compensation  Plan. (This  Exhibit has
       been previously filed as Exhibit 10(k) to Registrant's Form 10-K for  
       the period ended December  31, 1995, filed on April 1, 1996, and same is 
       incorporated by reference).*

10(h)  Form of Change in Control Compensation Agreement dated as of January 24,
       1997, by and between Carbonics and  three  employees.  (This Exhibit has 
       been previously filed as Exhibit 10(l) to Registrant's Form 10-Q  for  
       the  period ended  March  31,  1997,  filed  on May 14, 1997, and same 
       is incorporated by reference).*

10(i)  Nonqualified Stock Option Agreement by and between Richard D. Neely and
       ISITOP,  Inc.  ("ISITOP"),  dated  April  1, 1997.  (This Exhibit  has  
       been previously filed as Exhibit 10(i) 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).*

10(j)  Nonqualified Stock Option Agreement by and between Jerry S. Neely and 
       ISITOP, dated April 1, 1997. (This Exhibit has been previously filed as 
       Exhibit 10(j) 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).*

10(k)  Letter  Agreement dated August 15, 1997 by and among Collen, Carbonics, 
       Beard Oil and Registrant.  (This Exhibit has been previously filed as 
       Exhibit 10(m) to Registrant's Form 10-Q  for  the period ended September
       30, 1997, filed on November 13, 1997, and same is incorporated by 
       reference).*

10(l)  Letter Agreement dated October 8, 1997 by  and  among Randy D. Thacker,
       Carbonics and Registrant. (This Exhibit has been previously  filed as 
       Exhibit 10(n)  to  Registrant's  Form 10-Q for the period ended September
       30,  1997, filed on November 13, 1997, and same is incorporated by 
       reference).*

10(m)  Nonqualified Stock Option Agreement by and between Toby Tindell and ITF,
       dated February 27, 1998.  (This Exhibit has been previously filed as 
       Exhibit 10(n) 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).*

10(n)  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 by 
       reference).

10(o)  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 by reference.

10(p)  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 by
       reference).

10(q)  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 by reference).

10(r)  Compensation Agreement by and between Registrant and the Trustees of the
       William M. Beard and Lu Beard 1988 Charitable Unitrust (the "Trustees") 
       dated April 17, 1997. (This Exhibit has been previously filed  as 
       Exhibit 10(s) 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).

10(s)  Indemnity  Agreement  by  and between Registrant and the Trustees dated 
       April 17,  1997. (This Exhibit has  been  previously filed  as  Exhibit
       10(t)  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).

10(t)  Coal  Fines  Extraction  and Beneficiation Agreement among CRC NO. 1 LLC,
       CRC NO. 2 LLC, CRC NO. 3 LLC,  CRC  NO. 4 LLC, CRC NO. 5 LLC, CRC NO. 6 
       LLC, (the "Six LLC's") and Beard Technologies, Inc. ("BTI"), dated as of
       June 24, 1998.

10(u)  Operation and Maintenance Agreement among the Six LLC's and BTI, dated
       as of June 24, 1998.  (This  Exhibit has been previously filed as 
       Exhibit 10.1 to Registrant's Form 8-K, filed on July 15, 1998, and 
       same is incorporated herein by reference).

10(v)  Guaranty  Agreement  among Registrant and the Six LLC's, dated as of 
       June 24, 1998.  (This Exhibit has been previously filed as Exhibit  
       10.3  to Registrant's  Form 8-K, filed on July 15,  1998, and  same  
       is  incorporated herein by reference).

10(w)  Guaranty  Agreement between MCNIC Pipeline & Processing Company ("MCNIC")
       and BTI, dated  as  of June 24, 1998.  (This Exhibit has been previously
       filed as Exhibit 10.4 to Registrant's Form 8-K, filed on July 15, 1998, 
       and same is incorporated herein by reference).

10(x)  Loan Agreement between MCNIC and Beard Mining, L.L.C. ("BMLLC"), dated
       as of June 24, 1998.  (This Exhibit has been previously filed as 
       Exhibit 10.5 to Registrant's Form 8-K, filed on July 15, 1998, and same
       is incorporated herein by reference).

10(y)  Promissory Note from BMLLC to MCNIC, dated as of June 24, 1998.  This
       Exhibit has been previously filed as Exhibit 10.6 to Registrant's 
       Form 8-K, filed on July 15, 1998, and same is incorporated herein by
       reference).

11     Statement re computation of per share earnings.

27     Financial Data Schedule

---------------

* Compensatory plan or arrangement.

(b)  One report on Form 8-K was filed during the period covered
by this report.

     The  registrant  filed  an 8-K dated  July 15, 1998, including Item 2, 
Acquisition of Assets;  Item 5, Other Events;  and Item 7, Exhibits and Pro
Forma Financial Information.

<PAGE>

                                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)  August 14, 1998                     Herb Mee, Jr., President and
                                            Chief Financial Officer


(Date)  August 14, 1998                     JACK A. MARTINE
                                            Jack A. Martine, Controller and
                                            Chief Accounting Officer
<PAGE>

<TABLE>
                              EXHIBIT INDEX
<CAPTION>
Exhibit
No.        Description                    Method of Filing
<S>   <C>                                 <C>
2(a)  Agreement  and  Plan  of  Reorgani- Incorporated herein
      zation  by  and among Registrant,   by reference
      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        Incorporated herein
      by and between The Beard Company    by reference
      and The New Beard Company,
      dated as of September 16, 1997.

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

2(d)  Asset Purchase Agreement by         Incorporated herein
      and among Airgas Carbonic           by reference
      Reserves,Inc. ("Airgas"), 
      and Registrant, Carbonic 
      Reserves ("Carbonics"), 
      and Clifford H. Collen.

2(e)  Asset Purchase Agreement            Incorporated herein
      by and among Registrant,            by reference
      Toby B. Tindell, Cristie R.
      Tindell and Interstate 
      Travel Facilities, Inc.
      ("ITF"), dated as of 
      February 27,  1998.

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

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

4(a)  Agreement of Sale and               Incorporated herein
      Purchase by and between             by reference
      Beard Oil and Sensor Oil 
      & Gas, Inc.  ("Sensor").
      
4(b)  Certificate of Designations,        Incorporated herein
      Powers, Preferences and             by reference
      Relative, Participating, 
      Option  and  Other  Special
      Rights,  and  the Qualifi-
      cations, Limitations Re-
      strictions Thereof of the 
      Series A Convertible Voting
      Preferred Stock of the 
      Registrant.

4(c)  Settlement Agreement, with          Incorporated herein
      Certificate of Amendment            by reference
      attached thereto, by and 
      among Registrant, Beard Oil, 
      New York Life Insurance 
      Company, New York 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            Incorporated herein
      Beard Company 1993 Stock            by reference
      Option Plan dated August 27,
      1993, as amended June 4, 1998
      (The Amended Plan supersedes 
      he original Plan adopted on 
      August 27, 1993.

10(b) The Beard Company 1994              Incorporated herein
      Phantom Stock Units Plan            by reference
      adopted November 1, 1994.
  
10(c) Stockholders' Agreement             Incorporated herein
      made as of January 27,              by reference
      1993 by and among Registrant,
      Carbonics and Collen.

10(d) Stock Purchase Agreement            Incorporated herein
      dated as of December 15,            by reference
      1991 by and among Registrant
      (formerly known as Beard
      Investment Company),
      Carbonics and Collen.

10(e) Conversion Agreement dated          Incorporated herein
      as of January 31, 1995              by reference
      by and among Registrant,
      Carbonics and Collen.

10(f) Employment Agreement                Incorporated herein
      dated April 3, 1995 by              by reference
      and among Registrant, 
      Carbonics, Collen and 
      Beard Oil.

10(g) The Beard Company Deferred          Incorporated herein
      Stock Compensation Plan.            by reference

10(h) Form  of Change in Control          Incorporated herein
      Compensation Agreement              by reference
      dated as of January 24, 1997, 
      by and between Carbonics 
      and three employees.

10(i) Nonqualified Stock Option           Incorporated herein
      Agreement by and between            by reference
      Richard D. Neely and
      ISITOP, Inc. ("ISITOP"),
      dated April 1,1997.

10(j) Nonqualified Stock Option           Incorporated herein
      Agreement by and between            by reference
      Jerry S. Neely and ISITOP, 
      dated April 1, 1997.

10(k) Letter Agreement dated              Incorporated herein
      August 15, 1997 by and              by reference
      among Collen, Carbonics,
      Beard Oil and Registrant.

10(l) Letter Agreement dated              Incorporated herein
      October 8, 1997 by and              by reference
      among Randy D. Thacker,
      Carbonics and Registrant.

10(m) Nonqualified Stock Option           Incorporated herein
      Agreement by and between            by reference
      Toby Tindell and ITF,dated
      February 27, 1998.

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

10(o) Nonrecourse Secured Promissory      Incorporated herein
      Note from Registrant to Tax         by reference
      Sharing Agreement by and among
      Registrant, Cibola and the Cibola
      shareholders, dated April 10, 1996.

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

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

10(r) Compensation Agreement by and       Incorporated herein
      between Registrant and the          by reference
      Trustees of the William M. Beard
      and Lu Beard 1988 Charitable 
      Unitrust (the "Trustees") dated 
      April 17, 1997.

10(s) Indemnity Agreement by and          Incorporated herein
      between Registrant and the          by reference
      Trustees dated April 17, 1997.
        
10(t) Coal Fines Extraction and           Incorporated herein
      Beneficiation Agreement among       by reference
      CRC NO. 1 LLC, CRC NO. 2 LLC, 
      CRC NO. 3 LLC, CRC NO. 4 LLC,
      CRC NO. 5 LLC, CRC NO. 6 LLC,
      (the "Six LLC's") and Beard 
      Technologies, Inc. ("BTI"), 
      dated as of June 24, 1998.

10(u) Operation and Maintenance           Incorporated herein
      Agreement among the Six             by reference
      LLC's and BTI, dated as of 
      June 24, 1998.

10(v) Guaranty Agreement among            Incorporated herein
      Registrant and the Six LLC's,       by reference
      dated as of June 24, 1998.

10(w) Guaranty Agreement between          Incorporated herein
      MCNIC Pipeline & Processing         by reference
      Company ("MCNIC") and BTI, 
      dated as of June 24, 1998.

10(x) Loan Agreement between MCNIC        Incorporated herein
      and Beard Mining, L.L.C. ("BMLLC"), by reference
      dated as of June 24, 1998.

10(y) Promissory Note from BMLLC to       Incorporated herein
      MCNIC, dated as of June 24,         by reference
      1998.

11    Statement re computation of per     Filed herewith
      share earnings.                     electronically

27    Financial Data Schedule             Filed herewith
                                          electronically

</TABLE>