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 September 30, 1997
                                      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 September 30, 1997.


                   Common Stock $.001 par value - 2,824,629

<PAGE>
                               THE BEARD COMPANY

                                     INDEX




PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

  Balance Sheets - September 30, 1997 (Unaudited) and
       December 31, 1996 

  Statements of Operations - Three Months and Nine Months
       ended September 30, 1997 and 1996 (Unaudited) 

  Statements of Shareholders' Equity, Year ended
       December 31, 1996 and Nine Months ended
       September 30, 1997 (Unaudited) 

  Statements of Cash Flows - Nine Months ended
       September 30, 1997 and 1996 (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 6. Exhibits and Reports on Form 8-K

SIGNATURES

<PAGE>
                      THE BEARD COMPANY AND SUBSIDIARIES

                             Financial Statements



       September 30, 1997 (Unaudited) and December 31, 1996 and for the
  Three Months and Nine Months Ended September 30, 1997, and 1996 (Unaudited)

                                    PART I

                             FINANCIAL INFORMATION

Item 1. Financial Statements

<TABLE>
<CAPTION>
                       THE BEARD COMPANY AND SUBSIDIARIES
                                 Balance Sheets
              September 30, 1997 (Unaudited) and December 31, 1996

                                                     September 30,  December 31,
                           Assets                       1997           1996
                                                     ------------- -------------
<S>                                                  <C>           <C>
Current assets:
  Cash and cash equivalents                          $    729,000  $     375,000
  Accounts receivable, less allowance for doubtful
     receivables of $62,000 in 1997 and 
     $53,000 in 1996                                    2,987,000      2,405,000
  Inventories                                             671,000      2,003,000
  Prepaid expense                                         277,000        442,000
  Other assets                                            110,000         73,000
                                                    -------------  -------------
       Total current assets                             4,774,000      5,298,000
                                                    -------------  -------------

Investments and other assets                            1,698,000      1,710,000

Property, plant and equipment, at cost                 18,233,000     16,793,000
  Less accumulated depreciation, depletion
    and amortization                                    9,072,000      8,094,000
                                                     ------------  -------------
       Net property, plant and equipment                9,161,000      8,699,000
                                                     ------------  -------------

Intangible assets, at cost                              4,409,000      4,305,000
  Less accumulated amortization                         3,640,000      3,539,000
                                                     ------------  -------------
       Net intangible assets                              769,000        766,000
                                                     ------------  -------------
                                                     $ 16,402,000  $  16,473,000
                                                     ============  =============

           Liabilities and Shareholders' Equity
Current liabilities:
  Trade accounts payable                             $  1,946,000  $  1,395,000
  Accrued expense and other liabilities                   581,000       609,000
  Short-term debt                                               -       639,000
  Current maturities of long-term debt                    916,000       910,000
                                                    -------------  ------------
       Total current liabilities                        3,443,000     3,553,000
                                                    -------------  ------------
Long-term debt less current maturities                  3,408,000     2,911,000

Redeemable preferred stock of $100 stated value; 
  5,000,000 shares authorized; 90,156 shares
  issued and outstanding (note 4)                       1,200,000     1,200,000

Minority interest in consolidated subsidiaries             88,000       153,000

Common shareholders' equity:
  Common stock of $.001 par value per share; 
  10,000,000 shares authorized; 2,824,629 and 
  2,794,074 shares issued and outstanding in 
  1997 and 1996, respectively                               3,000         3,000
  Capital in excess of par value                       41,685,000    41,629,000
  Accumulated deficit                                 (33,425,000)  (32,976,000)
                                                    -------------  ------------
       Total common shareholders' equity                8,263,000     8,656,000
                                                    -------------  ------------

Commitments and contingencies (note 8)
                                                     $ 16,402,000  $ 16,473,000 
                                                    =============  ============
</TABLE>
                                                              
See accompanying notes to financial statements.


<TABLE>
<CAPTION>
                     THE BEARD COMPANY AND SUBSIDIARIES
                          Statements of Operations
                                (Unaudited)
                               
                                 For the Three Months       For the Nine Months
                                         Ended                    Ended
                                 -----------------------   ----------------------
                                  September    September   September    September
                                   30, 1997     30, 1996    30, 1997     30, 1996
                                 -----------   ----------  ----------  ----------
<S>                              <C>           <C>         <C>         <C>
Revenues:
 Environmental/resource recovery $ 1,557,000   $  810,000  $4,081,000  $1,868,000
 Carbon dioxide                      122,000       73,000     378,000     225,000
 Other                                12,000       17,000      36,000      47,000
                                 -----------   ----------  ----------  ----------
                                   1,691,000      900,000   4,495,000   2,140,000
Expenses:
 Environmental/resource recovery 
   (exclusive of depreciation,
   depletion and amortization
   shown separately below)         1,394,000      657,000   3,528,000   1,787,000
 Carbon dioxide (exclusive of 
   depreciation, depletion and
   amortization shown separately
   below)                             26,000       18,000      80,000      67,000
 Selling, general and 
   administrative                    523,000      485,000   1,539,000   1,335,000
 Depreciation, depletion and 
   amortization                      117,000       85,000     318,000     203,000
 Other                                 7,000       19,000      23,000      41,000
                                 -----------   ----------  ----------  ----------
                                   2,067,000    1,264,000   5,488,000   3,433,000
Operating profit (loss):
 Environmental/resource recovery    (238,000)    (162,000)   (578,000)   (654,000)
 Carbon dioxide                       90,000       55,000     280,000     157,000
 Other                              (228,000)    (257,000)   (695,000)   (796,000)
                                 -----------   ----------  ----------  ----------
                                    (376,000)    (364,000)   (993,000) (1,293,000)
Other income (expense):
 Interest income                       1,000        1,000       6,000       4,000
 Interest expense                    (77,000)     (44,000)   (198,000)    (80,000)
 Gain on sale of assets                1,000       47,000      51,000     140,000
 Minority interest in operations of
   consolidated subsidiaries          35,000       16,000      65,000      13,000
 Other, including unconsolidated 
   affiliates                         21,000        2,000      33,000    (101,000)
                                 -----------   ----------  ----------  ----------
Loss before income taxes            (395,000)    (342,000) (1,036,000) (1,317,000)

Income taxes (note 7)                (28,000)           -     (45,000)          -
                                 -----------   ----------  ----------  ----------
Loss from continuing operations     (423,000)    (342,000) (1,081,000) (1,317,000)

 Earnings from discontinued dry ice 
   and real estate operations, net
   of taxes of $11,000 and $19,000 
   for the three and nine-months 
   ended September 30, 1997
   (notes 2 and 7)                   377,000      463,000     632,000   1,378,000
                                 -----------   ----------  ----------  ----------
Net earnings (loss)                $ (46,000)  $  121,000  $ (449,000) $   61,000
                                 ===========   ==========  ==========  ==========
Net earnings (loss) applicable 
  to common  shareholders          $ (46,000)  $  121,000  $ (449,000) $   61,000
                                 ===========   ==========  ==========  ==========
Earnings (loss) per common share 
  and common equivalent share 
  (primary EPS) (note 5)
  Loss from continuing operations  $   (0.15)  $   (0.12)  $    (0.39) $   (0.47)
  Earnings from discontinued 
    operations                          0.13        0.16         0.23       0.49
  Earnings (loss)                      (0.02)       0.04        (0.16)      0.02

Earnings (loss) per common share 
  assuming maximum dilution (fully
  diluted EPS) (note 5)
  Loss from continuing operations  $   (0.15)  $   (0.10)  $    (0.39) $   (0.40)
  Earnings from discontinued 
    operations                          0.13        0.14         0.23       0.42
  Earnings (loss)                      (0.02)       0.04        (0.16)      0.02
</TABLE>

See accompanying notes to financial statements.

<TABLE>
<CAPTION>
                     THE BEARD COMPANY AND SUBSIDIARIES
                     Statements of Shareholders' Equity
                                (Unaudited)

                                                                                     Total
                                                      Capital in                    Common
                                         Common       Excess of     Accumulated   Shareholders'
                                          Stock       Par Value       Deficit       Equity
                                      -----------   ------------   ------------   ------------
<S>                                   <C>           <C>            <C>            <C>
Balance, December 31, 1995            $     3,000   $ 41,446,000   $(32,661,000)  $  8,788,000

 Net loss, year ended December 
  31, 1996                                      -              -       (315,000)      (315,000)

 Issuance of 68,244 shares of 
  common stock                                  -        183,000              -        183,000
                                      -----------   ------------   ------------   ------------
Balance, December 31, 1996                  3,000     41,629,000    (32,976,000)     8,656,000

 Net loss, nine months ended 
  September 30, 1997                            -              -       (449,000)      (449,000)

 Issuance of 25,555 shares of 
  common stock                                  -         56,000              -         56,000
                                      -----------   ------------   ------------   ------------
Balance, September 30, 1997 
 (unaudited)                          $     3,000   $ 41,685,000   $(33,425,000)  $  8,263,000
                                      ===========   ============   ============   ============
</TABLE>

See accompanying notes to financial statements.
<PAGE>

<TABLE>
<CAPTION>
                    THE BEARD COMPANY AND SUBSIDIARIES
                         Statements of Cash Flows
                              (Unaudited)
                                                For the Nine Months Ended
                                             ------------------------------
                                              September 30,   September 30,
                                                   1997            1996
                                             --------------  --------------
<S>                                          <C>             <C>
Operating activities:
 Cash received from customers                $   16,053,000  $   13,562,000
 Cash paid to suppliers and employees           (14,306,000)    (12,682,000)
 Cash received from settlement of 
   take-or-pay contract                                   -         539,000
 Interest received                                    6,000           8,000
 Interest paid                                     (277,000)       (278,000)
                                             --------------  --------------
      Net cash provided by operating 
        activities                                1,476,000       1,149,000
                                             --------------  --------------
Investing activities:
 Acquisition of property, plant and equipment    (1,138,000)     (1,380,000)
 Proceeds from sale of assets                        81,000         319,000
 Other investments                                   82,000          20,000
                                             --------------  --------------
      Net cash used in investing activities        (975,000)     (1,041,000)
                                             --------------  --------------
Financing activities:
 Proceeds from lines of credit and term notes     1,729,000       2,784,000
 Payments on lines of credit and term notes      (1,916,000)     (3,032,000)
 Proceeds from issuance of stock                     40,000          25,000
                                             --------------  --------------
      Net cash used in financing activities        (147,000)       (223,000)
                                             --------------  --------------
Net increase (decrease) in cash and cash 
  equivalents                                       354,000        (115,000)

Cash and cash equivalents at beginning of 
  period                                            375,000         220,000
                                             --------------  --------------
Cash and cash equivalents at end of period   $      729,000  $      105,000
                                             ==============  ==============
</TABLE>


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

Reconciliation of Net earnings (loss) to Net Cash Provided by (Used in) 
Operating Activities

                                              For the Nine Months Ended
                                              -------------------------
                                              September 30,   September 30,
                                                  1997             1996
                                             --------------   -------------
<S>                                          <C>              <C>
Net earnings (loss)                          $     (449,000)  $      61,000
Adjustments to reconcile net earnings (loss) 
  to net cash provided by (used in) 
  operating activities:
 Depreciation, depletion and amortization         1,133,000         972,000
 Provision for impairment of assets                  90,000         150,000
 Gain on sale of assets                             (62,000)       (140,000)
 Interest and other costs (capitalized) 
  recognized on real estate project                 359,000         (13,000)
 Gain on take-or-pay contract settlement                  -        (400,000)
 Equity in net (income) loss of unconsoli-
   dated affiliates                                (199,000)        (49,000)
 Other, including minority interest in con-
   solidated subsidiaries                           (11,000)         (5,000)
 Increase in accounts receivable, prepaids 
   and other current assets from operating 
   activities                                      (476,000)       (117,000)
 Decrease in inventories from operating 
   activities                                     1,065,000         248,000
 Increase in accounts payable and accrued
   expenses from operating activities                26,000         442,000
                                              -------------    ------------
 Net cash provided by operating activities    $   1,476,000    $  1,149,000
                                              =============    ============

Supplemental Schedule of Noncash Investing 
  and Financing Activities

Purchase of property, plant and equipment 
  and intangible assets through issuance 
  of debt obligations                         $      67,000    $  1,040,000
                                              =============    ============
Receipt of property, plant and equipment 
  as part of settlement of take-or-pay 
  contract                                    $           -    $    400,000
                                              =============    ============
Payment of note payable through 
  issuance of 50,000 shares of common stock   $           -    $    138,000
                                              =============    ============
Sale of property for a note receivable        $      87,000    $    104,000
                                              =============    ============
</TABLE>

See accompanying notes to financial statements.
<PAGE>

                      THE BEARD COMPANY AND SUBSIDIARIES
                         NOTES TO FINANCIAL STATEMENTS

                          September 30, 1997 and 1996
                                (Unaudited)


(1)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      BASIS OF PRESENTATION

The  accompanying  consolidated  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 consolidated financial  statements and notes
thereto  should  be  read  in  conjunction  with the consolidated  financial
statements and notes thereto included in Beard's  1996 annual report on Form
10-K.

The  accompanying  consolidated  financial statements  include  the accounts
of The Beard Company and its wholly and majority-owned subsidiaries ("Beard"
or  the "Company").   All  significant  intercompany  transactions have been
eliminated.

The  financial  information  included  herein  is unaudited;  however,  such
information  reflects  all  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  nine-month  periods  ended
September  30,  1997,  are  not  necessarily indicative of the results to be
expected for the full year.

The  Company   operates  within  two  major  industry  segments:   (1)   the 
environmental/resource recovery ("E/RR") Segment, consisting of environmental
services and resource recovery activities, and (2) the carbon dioxide ("CO{2}")
Segment,  comprised of the production of CO{2}.  The  Company's  real  estate  
("R/E")  Segment, consisting of real estate construction and development, was 
discontinued  in January, 1997.   In  addition,  the Company sold, in October 
of 1997, substantially all of the operating assets  of its subsidiary engaged
in  the  manufacture and distribution of dry ice (solid CO{2}).     See  Note
2 below. The Company  also  has  other  operations, including a minority-owned 
investment in a joint venture for the extraction, production and sale of crude 
iodine.

(2)  DISCONTINUED OPERATIONS

In January 1997, the Company approved a formal plan to dispose of the assets 
of its R/E Segment. The Company estimated  that  it  would  incur  a loss of
$180,000   from  discontinuing  real  estate  construction  and  development
activities.   The  loss  was  recorded  in  the  fourth  quarter of 1996 and
represented  the  difference  in the estimated amounts to be  received  from
disposing of the real estate construction  and  development  assets  and the
assets' recorded values as of December 31, 1996.

Results of operations of the R/E Segment for the three and nine months ended
September  30,  1996,  have  been restated as discontinued operations in the
accompanying   statements  of  operations.    Operating   results   of   the
discontinued operations through the date of sale of all remaining assets are
not expected to be significant.

During the nine  months  ended  September  30, 1997, the Company disposed of
certain real estate construction and development assets for $1,534,000 which
approximated the Company's estimated disposition values of those assets.

As of September 30, 1997, the significant remaining asset of the R/E Segment
consisted of one speculative home which the Company expects to dispose of by
December 31, 1997 at its September 30, 1997 recorded value.

In August 1997, the Company entered into an agreement  to sell substantially
all of the assets of Carbonic Reserves (an 85% owned subsidiary  of Beard in
the  CO{2} Segment) for cash OF $19.4 million  and the assumption of  certain
liabilities.  The sale was closed on October 13, 1997 and resulted in a gain
of approximately  $11.3  million.   The operations of Carbonic Reserves have
been  presented as discontinued in the  statements  of  operations  for  all
periods  presented.   As of November 12, 1997, the Company has paid down all
but  approximately  $769,000 of the Company's outstanding indebtedness.  The 
Company  expects to use  the  remaining  proceeds to provide working capital
to exploit the Company's remaining assets.  See Note 4 below.

As a result of this sale, the Company's continuing operations now include (A)
several subsidiaries engaged in environmental services and resource  recovery 
activities and (B) its directly owned CO{2} production activities, consisting
of (i) its working and overriding royalty interests in a CO{2} producing unit
in Colorado, and (ii) working interests in a producing CO{2} unit in New Mexico
and a shut-in CO{2} gas well in south central Utah.

Revenues  applicable  to  discontinued  operations  of Carbonic Reserves were 
$4,061,000,  $10,614,000, $3,980,000, and $10,160,000 for the three and nine-
month periods ended September 30, 1997 and 1996, respectively.

(3)  ACQUISITION

On May 21, 1996, the Company acquired 80% of the outstanding common stock  of
Horizontal  Drilling  Technologies, Inc. ("HDT") for $482,000.  HDT utilizes
trenchless technology and  specializes  in directional drilling for utility,
underground  cable  and environmental remediation  projects.   The  purchase
price consisted of a  non-interest  bearing  contingent  payment  obligation
valued at $301,000, a non-interest bearing $150,000 note, convertible at the
option  of  the  holder  into  common  stock  of the Company, and 20% of the
Company's ownership, valued at $44,000, in an existing  subsidiary  involved
in  environmental/resource  recovery  operations.   The  contingent  payment
obligation  is payable only from 80% of specified cash flows of HDT and  the
existing environmental/resource  recovery  subsidiary and was recorded based
upon its estimated present value.  The non-interest  bearing  note  was also
recorded  at  its present value and was converted into 50,000 shares of  the
Company's common  stock  on  July 1, 1996.  The conversion rate used was the
Company's July 1, 1996 closing  price  of  $3.00.  The fair value of the net
identifiable assets of HDT approximated $143,000  on  the  acquisition date.
The excess of the purchase price over the fair value of the net identifiable
assets  acquired has been recorded as goodwill and is being amortized  on  a
straight-line  basis over ten years.  The acquisition has been accounted for
by the purchase  method  and  accordingly,  the results of operations of HDT
prior  to  May  21,  1996,  are not included in the  Company's  consolidated
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  operations through September 30, 1997,  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.

The Company has entered into an Agreement to purchase 303,890 shares of its
common stock and 47,729 shares of its preferred stock from several parties.
Closing of the purchase  will take place in November 1997 and January  1998
with  a  total  repurchase  price of $4,160,590.  In addition, the  Company 
anticipates redeeming $1.459 million (14,590 shares) of the  Company's pre-
ferred stock in the first quarter of 1998 as a result of the  gain realized
from the Asset Sale.

(5)  EARNINGS (LOSS) PER SHARE

Primary earnings per common share for the three and nine-month periods ended
September 30, 1996 are computed by dividing net earnings available to common
shareholders by the weighted  average  number  of shares of common stock and
common  stock  equivalents  outstanding  during the  period.   Common  stock
equivalents  include shares issuable upon exercise  of  incentive  and  non-
qualified stock  options  using  the  treasury  stock method.  Fully diluted
earnings  per  share  for  the  periods listed above include  the  potential
dilution  of  the  earnings available  to  common  stockholders  as  if  the
preferred stock was converted to common stock.  The calculation includes the
weighted average number  of  shares of common stock  outstanding, the common
stock  equivalents,  and  the common  shares  that  would  result  from  the
conversion of the preferred shares.

The calculation of loss per  common  share  for  the  three  and  nine-month
periods ended September 30, 1997, does not include common equivalent  shares
or  potentially  dilutive  securities  outstanding,  as  the effect would be
antidilutive.

The following table contains the components of the common  share  and common
equivalent  share  amounts  used  in the calculation of earnings (loss)  per
share in the Company's statements of operations:

<TABLE>
<CAPTION>
                              For the Three Months Ended  For the Nine Months Ended
                              --------------------------  -------------------------
                                 September    September    September   September
                                  30, 1997     30, 1996     30, 1997    30, 1996
                                 ---------    ---------    ---------   ---------
<S>                              <C>          <C>          <C>         <C>
Primary EPS:
  Weighted average common
   shares outstanding            2,805,306    2,756,752    2,801,174   2,743,067
  Options considered to be
   common stock equivalents              -       42,155            -      39,196
                                 ---------    ---------    ---------   ---------
                                 2,805,306    2,798,907    2,801,174   2,782,263
                                 =========    =========    =========   =========
Fully diluted EPS:
  Weighted average common
    shares outstanding           2,805,306    2,756,752    2,801,174   2,743,067
  Options considered to be
   common stock equivalents              -       42,155            -      39,196
  Conversion of preferred stock          -      462,445            -     462,445
                                 ---------    ---------    ---------   ---------
                                 2,805,306    3,261,352    2,801,174   3,244,708
                                 =========    =========    =========   =========
</TABLE>

(6)  SETTLEMENT OF TAKE-OR-PAY CONTRACT

In February 1996, the Company negotiated a settlement of a take-or-pay contract
under which a customer was obligated  to  purchase certain volumes of liquid
CO{2}.  As a result of the settlement, the Company received $539,000 of cash
and a CO{2} vapor recovery system with an estimated  fair  value of $400,000
and the Company released the party of its contractual obligation to purchase
the  contracted  liquid  CO{2}  volumes.   The  Company realized a  gain  of
$939,000 related to this settlement.

(7)  INCOME TAXES

In accordance with the provisions of the Statement  of  Financial Accounting
Standards  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  net
deductible timing differences.  There is no provision  for  regular  federal
income taxes in 1997 or 1996 due to the availability of net operating losses
and other carryforwards.  The provision in the statements of operations  for
the  three  and  nine-month  periods  ending  September 30, 1997 consists of
$11,000 and $19,000 in state income tax and $28,000  and  $45,000 in federal
alternative minimum tax, respectively.

At  September  30,  1997,  the  Company estimates that it had the  following
income  tax  carryforwards available  for  both  income  tax  and  financial
reporting purposes (in thousands):

<TABLE>
<CAPTION>
                                                  Expiration
                                                     Date         Amount
                                                  ----------     ---------
<S>                                               <C>            <C>
Federal regular tax operating loss carryforwards   2001-2010     $  65,212
Investment tax credit carryforward                 1997-2000           679
Tax depletion carryforward                        Indefinite         5,500
                                                                 ---------
                                                     Total       $  71,391
                                                                 =========
</TABLE>

(8)  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.

<PAGE>

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, 1996 and results of operations  for  the
quarter  ended  September 30, 1997 compared to the prior year third quarter and
the nine months ended  September  30,  1997  compared  to  the  prior year nine
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 1996 Form 10-K.

   The  Company operates within two major industry  segments: (1) the  environ-
mental/resource recovery ("E/RR") Segment, consisting of environmental services
and resource recovery activities, and (2) the  carbon dioxide ("CO{2}") Segment 
involving  the  production  of  CO{2}.   As  more  fully  explained  below,  on
October  13,  1997,  the Company closed the sale of substantially  all  of  the
operating  assets of Carbonic  Reserves  ("the  Asset  Sale"),  its  85%  owned
subsidiary engaged  in  dry  ice  manufacturing  and  distribution, leaving the
Company's  CO{2}  production  interests  as  the remaining  component  of  this
segment.   The  operations of Carbonic Reserves have  been  presented  as  dis-
continued  for  all  periods   presented.   See  Note  2  to   the    financial
statements.  The Company also has other operations, including (i)  a  minority-
owned investment in a joint venture for the extraction, production and  sale of
crude  iodine,  and  (ii)  various assets and investments which the Company has
been liquidating as opportunities  have  materialized,  including the assets of
the Company's former real estate construction and development  ("R/E") Segment,
the operations of which were discontinued in January, 1997.  See  Note 2 to the
financial statements.

MATERIAL  CHANGES IN FINANCIAL CONDITION - SEPTEMBER 30, 1997 AS
COMPARED  WITH DECEMBER 31, 1996.

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

<TABLE>
<CAPTION>
                             SEPTEMBER 30,    DECEMBER 31,      INCREASE
                                 1997             1996         (DECREASE)
                             -------------    ------------     ----------
<S>                          <C>              <C>              <C>
Cash and cash equivalents     $  729,000       $  375,000       $354,000
Working capital               $1,331,000       $1,745,000      $(414,000)
Current ratio                  1.39 to 1        1.49 to 1
</TABLE>


   The Company's ability to generate working capital from operations during the
first nine months of  1997  was  adversely  affected  by seasonality during the
first three months of the year.  The first quarter is normally  a  poor one for
the  dry  ice  business,  and cold and/or rainy weather also normally causes  a
slowdown of sales in the environmental  services  portion  of the E/RR Segment.
As previously mentioned, the Company has discontinued the R/E  Segment  and the
sale  of substantially all of its assets in this segment during the first  nine
months  of  1997  provided  cash of $1,304,000 and working capital of $449,000.
The proceeds from the sale were used to pay down the short-term debt associated
with the construction cost of  these  assets.   Despite  the  seasonal decline,
however, net working capital generated by the above sale and by operations as a
result of increased activity in the E/RR Segment for the first  nine  months of
1997  amounted  to  $861,000, compared to $576,000 generated in the first  nine
months of 1996.

   In addition to the  proceeds from the sale of assets in the R/E Segment, the
Company has been able to  satisfy  its  liquidity  needs  through  its  working
capital  and  borrowing  arrangements.   Future  cash flows and availability of
credit are subject to a number of variables, including  continuing  private and
governmental demand for environmental services.  Because of the sale in October
of 1997 of substantially all of the operating assets of Carbonic Reserves,  the
Company  anticipates  that  its  cash  flow  from  operations will be more than
adequate to meet its planned operating costs and capital  spending requirements
for some period of time.

      Capital  additions of $1,494,000 were made by the following  segments  in
property, plant  and  equipment  during  the  first  nine  months  of  1997, as
reflected in the table below:

Environmental/resource recovery                  $  453,000
Carbon dioxide, including Carbonic Reserves       1,041,000
                                                 ----------
                                                 $1,494,000
                                                 ==========

      Included  in  the  above  are  $356,000 of additions financed through the
issuance of seller-financed notes.

      The Company's working capital is  expected  to  be  more than adequate to
fund  the  current and presently foreseeable capital expenditure  requirements,
including the $1,550,000 projected for the last three months of 1997.

      On  October 13, 1997, the Company closed the sale of substantially all of
its dry  ice  manufacturing  and distribution assets for cash of $19.4  million 
and the assumption of certain liabilities.  The Company recognized a gain  from
the  Asset  Sale  of approximately $11.3 million.  As of November 10, 1997, the 
Company had paid off a significant portion of its indebtedness. The Company has 
entered into an Agreement to purchase 303,890 shares  of its  common  stock and
47,729 shares of its preferred stock from several parties.  Closing of the pur-
chase will take place in November 1997 and January 1998 with a total repurchase
price of $4,160,590.  In addition, the  Company  anticipates  redeeming  $1.459
million (14,590 shares) of the Company's preferred stock in the  first  quarter
of  1998  as  a  result of the gain realized from the Asset Sale.  The  Company
expects  to use  the  remaining proceeds to provide working capital to  exploit 
the Company's remaining assets. See Notes 2 and 4 to the accompanying financial
statements.

      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
SEPTEMBER 30, 1997 AS COMPARED WITH THE QUARTER ENDED SEPTEMBER 30, 1996.

      The loss for the quarter ended September 30,  1997  was $46,000, compared
to  income  of $121,000 for the third quarter of the prior year.   The  current
quarter resulted in a $12,000 decline over the operating income recorded in the
year earlier  quarter.  There were revenue gains in both the CO{2} and the E/RR
Segments; however,  the improved operating margin in the CO{2} Segment was more
than offset by lower  margins in the E/RR Segment and "Other" caused by greater
operating expenses.

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

<TABLE>
<CAPTION>
                                     1997                    1996
                                 -----------            ------------
<S>                              <C>                     <C>
OPERATING PROFIT (LOSS):
   Environmental/resource
     recovery                    $  (238,000)           $   (162,000)
   Carbon dioxide                     90,000                  55,000
                                 -----------            ------------
         Subtotal                   (148,000)               (107,000)
   Other                            (228,000)               (257,000)
                                 -----------            ------------
           TOTAL                  $ (376,000)             $ (364,000)
                                 ===========            ============
</TABLE>

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

ENVIRONMENTAL/RESOURCE RECOVERY

      The E/RR Segment generated a $76,000 larger operating loss  in  the third
quarter  of 1997 compared to the same period in 1996.  The segment reflected  a
47% increase  in  revenues  as a result of  the  completion  of  several  large
drilling  and  water  main  projects.   Management  of  the  Company  has  been
pursuing and will continue to pursue the commercial development of its patented
Mulled  Coal technology.  The costs of pursuing this  development, as  well  as 
increased  operating  expenses  related to the Company's environmental services
activities,  offset  the  increased  revenues  and  resulted  in the decline in
operating margins.

CARBON DIOXIDE

      Third quarter 1997 operations  reflected  an  operating profit of $90,000
compared to a $55,000 profit for the 1996 third  quarter.   Revenues  from this
segment for the third quarter ended September 30,  1997  approximated $122,000,
a 67% increase over last year's third quarter.  The primary factor contributing 
to  this  improvement  was additional  CO{2} sales resulting  from  a  develop-
ment program which began in July  of  1996  to  meet increased demand for  the
CO{2}  produced  from one of the fields in which the Company has small working 
and overriding royalty interests.

OTHER ACTIVITIES

      Other operations, consisting  mostly of general and corporate activities,
generated a slightly smaller operating  loss for the third quarter of 1997 than
the same period of last year.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

     The Company's selling, general and administrative expenses ("SG&A") in the
current quarter increased to $523,000 from $485,000 in the 1996 third  quarter.
SG&A  expenses  incurred  by the E/RR Segment during the third quarter of 1997,
which represent 55% of the total SG&A costs, increased by $53,000 over the same
period last year.  This increase  was  associated  with an increase in expenses
related  to  increases in the cost of health benefits  for  employees  in  this
segment.

DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES

     The third quarter  of  1997  had  an  increase in DD&A expense of $32,000,
reflecting  additions  to property, plant and equipment made  during  the  past
year.

OTHER INCOME AND EXPENSES

     Other income and expenses  resulted  in  a  loss of $19,000 for the  third
quarter of 1997, down from the $22,000 gain recorded for such items in the same
period of 1996.  The decrease was due, in part, to  the  fact  that  the  third
quarter  of  1997  included an increase in interest expense of $33,000 over the
same period in 1996.   The  third quarter of 1997 also showed a decrease in the
gain on sale of assets of $46,000  compared to the third quarter of 1996.  Such
items were offset by a $38,000 increase  in  income  from  other  items and the
minority interest in the operations of consolidated subsidiaries.

DISCONTINUED OPERATIONS

   As   previously   discussed,   the  Company  discontinued  its  real  estate
construction and development activities  in  January  of 1997 in order to focus
its attention on other segments which are considered to  have greater potential
for  growth  and  profitability.   As  discussed  in  Note  2 to the  Financial
Statements, the Company recognized the estimated loss of disposing  of  the R/E
Segment's assets in the fourth quarter of 1996.  In the first quarter of  1997,
the  Company  sold  all  of  the R/E Segment's assets, except for two completed
speculative homes, for $1,196,000.   One  of  the two homes was sold during the
second quarter of 1997 for $338,000.  The Company  expects  to  dispose  of the
remaining speculative home by December 31, 1997.

     On October 13, 1997, the Company closed the sale of substantially all of
its dry ice manufacturing and distribution assets for cash of  $19.4  million 
and the assumption of certain liabilities. The Company recognized a gain from
the Asset Sale of approximately $11.3 million.  As of  November 10, 1997, the 
Company had paid off a significant portion of its indebtedness.  The  Company 
has entered into an Agreement to purchase 303,890 shares of its  common stock 
and 47,729 shares of its preferred stock from several parties. Closing of the 
purchase will take place in November 1997 and January 1998 with a total repur-
chase price of $4,160,590.  In addition, the  Company  anticipates  redeeming 
$1.459 million (14,590 shares) of the  Company's preferred stock in the first 
quarter of 1998 as a result  of  the  gain  realized from the Asset Sale. The 
Company expects to use the  remaining  proceeds to provide working capital to 
exploit the Company's remaining assets. See Notes 2 and 4 to the accompanying 
financial statements.

MATERIAL CHANGES IN RESULTS OF OPERATIONS - NINE  MONTHS  ENDED 
SEPTEMBER  30, 1997 AS COMPARED WITH THE NINE MONTHS ENDED SEPTEMBER 30, 1996.

      The  loss  for  the  nine  months  ended September 30, 1997 was $449,000,
compared to income of $61,000 for the first nine months of the prior year.  The
first three quarters of 1996 benefited from  a  settlement  of  the take-or-pay
agreement  in the CO{2} Segment in the amount of $939,000.  This income,  along
with the other results of operations for Carbonic Reserves and the R/E Segment,
have been presented  as  discontinued  operations  for  all  periods presented.
Increased  revenues  in  all  segments  were  more than offset by increases  in
operating, SG&A and other expense classifications  resulting  in a loss for the
first nine months of 1997.

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

<TABLE>
<CAPTION>
                                        1997              1996
                                  -------------       -----------
<S>                               <C>                 <C>
Operating profit (loss):
   Environmental/resource
        recovery                  $    (578,000)      $  (654,000)
   Carbon dioxide                       280,000           157,000
                                  -------------       -----------
          Subtotal                     (298,000)         (497,000)
   Other                               (695,000)         (796,000)
                                  -------------       -----------
            TOTAL                 $    (993,000)      $(1,293,000)
                                  =============       ===========
</TABLE>

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

ENVIRONMENTAL/RESOURCE RECOVERY

   A  significant  increase  in  revenues generated by the E/RR Segment in  the
first nine months of the year led to a $76,000 improvement in operating margins
as compared to the same period in 1996. This increase in revenues was primarily
caused by the completion of  several  large drilling and water main replacement
projects  and  the full nine months impact of Horizontal Drilling Technologies,
Inc. ("HDT"), resulting from Beard's purchase of 80% of HDT'S common stock (the
"HDT acquisition")  in  May 1996.  The revenue increase was partially offset by
the  increased  operating  costs  related to the Company's other  environmental 
services activities and by the development  costs associated with the Company's
patented Mulled Coal technology.  Management  of the  Company will  continue to 
pursue  the  commercial  development  of  this technology.

CARBON DIOXIDE

   Operations for the first nine months of 1997 resulted in an operating profit
of $280,000  compared  to  a  $157,000 operating profit for the 1996 first nine
months.  The sole component of revenue for this segment is now the revenue from
the Company's small working and  overriding  royalty interests in two producing
CO{2}  units located in Colorado and New Mexico.   The  nine  months  operating
results  of  1997 compared to 1996 reflect the increased revenue resulting from
the development project begun in 1996 on one of the properties.

   Revenues from  this  segment  totaled  $378,000 for the first nine months of
1997,  a  68% increase over the same period last  year.   This  improvement  in
revenues was  partially  offset  by  increases  in expenses associated with the
development program.

OTHER ACTIVITIES

      Other operations, consisting mostly of general  and corporate activities,
generated a $101,000 smaller operating loss for the first  nine  months of 1997
as compared to the same period last year.  The principal reason for the smaller
loss is the result of a change in the method of allocating expenses  for health
benefits among members of the consolidated group whereby the other members  now
bear a larger share of the expected costs for health insurance.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

     The Company's selling, general and administrative expenses ("SG&A") in the
first nine months of  1997  increased  to  $1,539,000  from  $1,335,000  in the
comparable  1996 period. SG&A expenses incurred by the E/RR Segment during  the
first nine months  of  1997,  which  represent  55%  of  the  total SG&A costs,
increased by $296,000 over the same period last year.  The effect  of  the  HDT
acquisition  accounted  for $173,000 or 58% of this increase.  Other members of
the segment incurred increases in SG&A costs as a result of increased operating
activity.

DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES

     The first nine months of 1997 had an increase in DD&A expense of $115,000,
reflecting additions to property,  plant  and  equipment  made  during the past
year.

OTHER INCOME AND EXPENSES

     The negative net  effect of other income and expenses for the  first  nine
months  of  1997  increased  slightly  compared  to  the  same  period in 1996.
Interest expense increased $118,000 for the first nine months of  1997 compared
to the same period in 1996 as a result of increased borrowings to meet  working
capital  needs in the E/RR Segment and other operations.  The first nine months
of 1997 realized  $89,000 less gain on the sale of assets compared to the first
nine  months of 1996.   Other  items  included  a  $60,000  smaller  impairment
provision  in 1997, compared to the first nine months of 1996, recorded against
the carrying  value  of  the  Company's  interest  in certain investments and a
$149,000 improvement in the earnings of its unconsolidated  affiliates  for the
same period.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED

     In  February,  1997,  the  Financial  Accounting  Standards  Board  issued
Statement  of  Financial  Accounting  Standards  No. 128, "Earnings Per Share."
SFAS No. 128 is effective for financial statements  issued  for  periods ending
after  December  15, 1997, and restatement of prior-period earnings  per  share
data is required.   The  new  standard  will  not  apply  to  Beard's financial
statements until the fourth quarter of 1997.  SFAS No. 128 revises  the current
calculation methods and presentation of primary and fully diluted earnings  per
share.   Beard  has reviewed the requirements of SFAS No. 128 and has concluded
that they will not  have  a  material  effect  on  the  calculation  of Beard's
historical earnings (loss) per share data.


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 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:

Exhibit      Description
-------      -----------
10(M)        Letter Agreement dated August 15, 1997 by and among Clifford H.
             Collen, Jr., Carbonic Reserves, Beard Oil Company and Registrant.

10(N)        Letter Agreement dated October 8, 1997 by and among Randy D. 
             Thacker, Carbonic Reserves, and Registrant.

27           Financial Data Schedule

(b)  No reports on Form 8-K were filed during the period covered by this report.
<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) November 12, 1997          ___________________________________
                                          Herb Mee, Jr., President and
                                          Chief Financial Officer


                                                JACK A. MARTINE
   (Date) November 12, 1997          ___________________________________
                                          Jack A. Martine, Controller and
                                          Chief Accounting Officer

<PAGE>
                             EXHIBIT INDEX

<TABLE>
<CAPTION>

Exhibit No.     Description                       Method of Filing
-----------     -----------                       ----------------
<S>           <C>                               <C>
10(M)         Letter Agreement dated August 15, Filed herewith electronically
              1997 by and among Clifford H.
              Collen, Jr., Carbonic Reserves,
              Beard Oil Company and Registrant

10(N)         Letter Agreement dated October    Filed herewith electronically
              8, 1997 by and among Randy D.
              Thacker, Carbonic Reserves, and
              Registrant

27            Financial Data Schedule           Filed herewith electronically
</TABLE>