Exhibit 10(u)

                                           DATE OF AGREEMENT
                                             AUGUST 30, 2000
GUARANTY AGREEMENT

    DEBTOR NAME AND ADDRESS        LENDER NAME AND ADDRESS
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The Beard Company                Bank of Oklahoma, N.A.
5600 N. May Ave.  Suite 320      OKC Main
Oklahoma City,  OK     73112     P.O. Box 268800
                                 Oklahoma City,  OK  73126-8800
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A.  To induce the Lender to extend credit to the Debtor and
  for other good and valuable consideration, the receipt of
  which is acknowledged, and for the purpose of enabling
  the Debtor to obtain or renew loans, credit or other
  financial accommodation from the Lender named above, each
  of the undersigned as a primary obligor, jointly and
  severally and unconditionally: (I) guarantees to the
  Lender that Debtor will fully and promptly pay or
  otherwise discharge all indebtedness and other
  obligations ("indebtedness") upon which Debtor now is or
  may later, from time to time, become obligated to Lender
  as principal, guarantor, endorser, or in any other
  capacity, and whether joint or several liability or
  liability created by direct dealing with Lender or
  through transfer from others, and regardless of the
  nature and form of indebtedness and whether due or not
  due; (2) agrees, without the Lender first having to
  proceed against Debtor or any other party liable or to
  liquidate any security, to pay on demand all sums due and
  to become due to Lender from Debtor, and all losses,
  costs, attorney fees or expenses which may be suffered or
  incurred by Lender by reason of Debtor's default or the
  default of the undersigned; (3) except as setoff is
  waived, agrees to be bound by and on demand to pay any
  deficiency or difference between all indebtedness of the
  Debtor and the proceeds of any private or public sale
  (including a sheriff's sale) of the security held by
  Lender, with or without notice to the undersigned; (4)
  agrees that liability under this Agreement will not be
  affected or impaired by any failure, neglect or omission,
  including a failure or delay to perfect or maintain
  perfection of a security interest, either in relation to
  the collection of the indebtedness or the protection of
  the security given, and regardless of whether the Lender
  fails or omits to seek or is precluded from seeking a
  judgment against Debtor; and (5) further agrees that the
  liability of the undersigned shall not be affected by any
  lack of validity or enforceability due to defense, claim,
  discharge or otherwise of any indebtedness guaranteed by
  this Agreement or of the security of the indebtedness.

B.  Lender may at any time and from time to time without the
  further consent of or notice to the undersigned, without
  incurring responsibility to the undersigned and without
  impairing or releasing the obligations of the
  undersigned, and upon any terms and conditions the Lender
  may elect: (1) change the manner, place or terms of
  payment or extend the time of payment of any indebtedness
  of Debtor to Lender; (2) renew, increase or alter any
  indebtedness of Debtor to Lender; (3) raise or lower the
  interest rate or rates charged Debtor; (4) sell,
  exchange, release, surrender, realize upon support or
  otherwise deal or not deal with in any manner and in any
  order any property at any time pledged to secure or
  securing the indebtedness of Debtor to Lender or any
  liabilities incurred directly or indirectly under this
  Agreement, or any offsets against any such indebtedness
  or liabilities; (5) exercise or refrain from exercising
  any rights against Debtor or others, or otherwise act or
  refrain from acting; (6) settle or compromise any
  indebtedness guaranteed or incurred; (7) subordinate the
  payment of all or part of any indebtedness of Debtor to
  Lender to the payment of any liabilities which may be due
  Lender or others; (8) apply any sums paid by or for
  account of Debtor to any indebtedness of Debtor to Lender
  regardless of what indebtedness or liability of Debtor to
  Lender remains unpaid and regardless of to which
  indebtedness such sums were intended to be applied; (9)
  release any one or more of the undersigned, any other
  guarantor or any other party liable upon or for any
  indebtedness or other obligation guaranteed and such
  release will not affect the liability under this
  Agreement of any of the undersigned or any other party
  not so released; (10) add or release the primary or
  secondary liability of principals, guarantors or other
  parties; and/or (11) obtain additional collateral
  security.

C.  The undersigned waives: (1) any and all acceptance of
  this Guaranty Agreement; (2) notice of the creation of
  any indebtedness; (3) any presentment, demand for
  payment, notice of default or non-payment, notice of
  acceleration, notice of disposition of security, notice
  of dishonor or protest to or upon any party and all other
  notices whatsoever whether required or permitted by this
  Guaranty Agreement, any other agreement, course of
  dealing, usage of trade, course of performance and, to
  the extent allowed, the law; (4) any exercise of any
  remedy which the Lender now has or later acquires against
  the Debtor or any other party; (5) any impairment of
  collateral, including, but not limited to, the failure to
  perfect, or maintain perfection of, a security interest
  in collateral; and (6) any event, or any act or omission
  of the Lender (except acts or omissions in bad faith)
  which materially increases the scope of the undersigned's
  risk as guarantor, including the manner of administration
  of the loan and changes in the form or manner in which
  any party does business or in their financial condition
  and any notice of any such change.

D.  This Guaranty Agreement shall be absolute, unconditional
  and continuing guaranty of payment and not of collection
  and shall be binding upon the undersigned, heirs or
  successors of the undersigned, and the estate or estates
  of the undersigned: (1) regardless of the death or
  cessation of existence of any of the undersigned or of
  any guarantor or any other party liable upon any
  indebtedness or other obligation hereby guaranteed; (2)
  irrespective of any defenses, claim or discharge
  available to the Debtor under law or under any agreement
  with the Lender; and (3) irrespective of any failure or
  delay by the Lender to perfect or keep perfected any lien
  or security interest in any collateral. This Guaranty
  Agreement is an independent obligation which is
  separately enforceable from the obligation of the Debtor.

E.  All rights of the Lender are cumulative and not
  alternative to other rights. Suit may be brought against
  the undersigned or other parties liable, jointly and
  severally, and against any one or more of them, and
  against all or less than all, without impairing the
  rights of the Lender, its successors or assigns, against
  others of the undersigned. The Lender may settle with any
  one of the undersigned or any other party for such sum or
  sums as it may see fit and release such of the
  undersigned or other parties from all further liability
  to the Lender for such indebtedness without impairing the
  right of the Lender to demand and collect the balance of
  such indebtedness from others of the undersigned not so
  released.

F.  The Lender may assign this Agreement or any of its rights
  and powers under it, with all or any part of the
  indebtedness guaranteed, and may assign to any such
  assignee any of the security for the indebtedness. In
  the event of such assignment, the assignee shall have the
  same rights and remedies as if originally named in this
  Agreement in place of Lender, and the Lender shall
  thereafter be fully discharged from all responsibility
  with respect to any such indebtedness so assigned.

G.  Unless expressly limited by specific writing as set forth
  in this Guaranty Agreement, it is understood to be
  unlimited in amount. If limited, it is understood the
  limit means a fixed amount or percentage of any
  indebtedness remaining after application of the actual
  proceeds of the disposition of any security to any
  unguaranteed portion of the indebtedness.

H.  Until the indebtedness of the Debtor have been paid in
  full, the undersigned agrees to provide to the Lender
  from time to time upon demand such financial statements,
  copies of tax returns, and other information as to the
  undersigned as the Lender may reasonably required.

I.  Any deposits or other sums credited by or due from the
  Lender to the undersigned may be set off against any and
  all liabilities of the undersigned to the Lender arising
  under the terms of this Guaranty Agreement. The rights
  granted by this paragraph shall be in addition to the
  rights of the Lender under any statutory banker's lien or
  common law right of offset.

J.  Until the obligations of the Debtor have been paid in
  full, the undersigned specifically waives all rights of
  subrogation to the rights of the Lender, any claim to any
  security or its value to which the lender has recourse,
  and all rights of reimbursement or contribution from
  other parties, whether principals or sureties,
  accommodation parties or guarantors.

K.  The undersigned may, only by written notice given to and
  received by Lender, withdraw only from liability for
  additional indebtedness of Debtor accepted by or incurred
  to Lender after the time of receipt of such notice by
  Lender. The liability and other agreements of the
  undersigned shall not be otherwise affected but shall
  continue until all indebtedness, including loan
  commitments, existing at the time of the receipt of such
  notice, and renewals or extensions of indebtedness to
  which the undersigned consents, is fully paid. After any
  such revocation, Lender may exercise any rights granted
  in this Agreement without releasing the undersigned from
  liability.

L.  Notwithstanding the provisions of any note or obligation
  to which this Guaranty Agreement applies, it is the
  intention of the parties, and it is here provided, that a
  Guarantor shall not be liable for interest charges in
  excess of the maximum amount permitted under the law
  applicable to this Guaranty Agreement.

M.  The undersigned specifically waives any right to setoff
  under 12 O.S. sec. 686, 15 0.S. sec. 341, or any like
  statutes, and agree that the Lender may apply the actual
  proceeds from the disposition of any security first to
  any unguaranteed portion of the indebtedness. Any party
  to this Guaranty Agreement has right to waive trial by
  jury and waives all objections to venue in any action
  instituted by the Lender arising out of this Guaranty
  Agreement.

N.  The undersigned waive, as of the date of this Guaranty
  Agreement, any claim, as that term is defined in the
  Federal Bankruptcy Code, which the undersigned might have
  or acquire against the Debtor arising from the existence
  or performance of the undersigned's obligations under
  this Guaranty Agreement, and to that extent that the
  undersigned is not a creditor of the Debtor. In addition
  to the waiver of the status of creditor, it is agreed
  that the indebtedness guaranteed under this Guaranty
  Agreement excludes all portions of the indebtedness paid
  by the Debtor during the period of time within one year
  prior to the filing of any bankruptcy, reorganization or
  insolvency proceedings by or against the Debtor. If any
  payment made by the Debtor to the Lender is determined to
  be avoidable under applicable state law or the Federal
  Bankruptcy Code, to that extent, if demanded by the
  Lender, this Guaranty Agreement is deemed to be
  reinstated to include the amount within the indebtedness
  under this Guaranty Agreement.

0.  The undersigned, by signing below, acknowledge having
  read this Guaranty Agreement, having reviewed it to the
  extent desired with their legal counsel, and receiving a
  copy of it and also receiving an explanation of any
  questions. The undersigned also have read any cosigner
  notice provided by Lender. The undersigned understand
  that the undersigned may have to pay any indebtedness
  or obligation covered by this Guaranty Agreement in the
  event the Debtor fails or refuses to do so. The
  undersigned also represent that they are aware of the
  financial condition of Debtor and acknowledge a
  responsibility to maintain a close watch on that
  financial condition as long as this Guaranty Agreement is
  outstanding and that they are not relying on the Lender
  to provide information on the Debtor's financial
  condition, now or in the future.

P.  Any cause of action for a breach or enforcement of, or a
  declaratory judgment respecting, this agreement or any
  agreement related to the execution and delivery of this
  agreement shall be commenced and maintained only in the
  United States District Court for the Northern District of
  Oklahoma or the applicable Oklahoma state trial court
  sitting in Tulsa, Oklahoma and having subject matter
  jurisdiction; provided, however, any action to foreclose
  any deed of trust or real estate mortgage securing
  finance or repayment shall be brought in any county
  having mandatory venue thereof pursuant to the venue
  statutes of the State of Oklahoma.

Q.  This Guaranty Agreement constitutes the entire agreement
  between the parties with respect to the obligations of the
  undersigned and the rights of the Lender under this Guaranty
  Agreement. This Guaranty Agreement cannot be amended except by an
  agreement in writing signed by both the undersigned and the
  Lender. No condition as to the effectiveness or enforcement of
  this Guaranty Agreement exists except as stated in this Guaranty
  Agreement. Regardless of any other provision of this Guaranty
  Agreement to the contrary, and unless otherwise specifically
  released or modified by this Guaranty Agreement, all other
  obligations of the undersigned to Lender evidenced by a note,
  loan agreement, guaranty or any other written agreement remain in
  force and effect.

   WITNESSES SIGNATURE(S)      GUARANTOR SIGNATURE(S)

                                 WILLIAM M. BEARD
                                 William M. Beard