Document:

Exhibit 10.2

                                     SECOND
                                   REPLACEMENT
                              RENEWAL AND EXTENSION
                                 PROMISSORY NOTE

$2,782,900.59                                          Oklahoma City, Oklahoma
February 14, 2005

      For value received, the undersigned, The Beard Company, an Oklahoma
corporation (the "Maker"), agrees to all of the terms of this Promissory Note
(this "Note") and promises to pay to the order of William M. Beard and Lu Beard
as Trustees of the William M. Beard and Lu Beard 1988 Charitable Unitrust
(individually and collectively called the "Holder"), at Enterprise Plaza, Suite
320, 5600 N. May, Oklahoma City, Oklahoma 73112, or at such other place as may
be designated in writing by the Holder of this Note, the principal sum of Two
Million Seven Hundred Eighty-Two Thousand Nine Hundred and 59/100ths Dollars
($2,782,900.59) plus all interest accruing thereon. This Note will be payable as
follows:

      Prior to Default the unpaid principal balance of this Note will bear
      interest at the rate of ten percent (10%) (the "Applicable Rate").
      Interest will commence to accrue on the unpaid principal balance of this
      Note on the date hereof and thereafter until this Note is paid in full.
      Interest will be computed for the actual number of days elapsed at a per
      diem charge based on a year consisting of three hundred sixty (360) days.
      All payments will be applied first to any accrued interest on this Note
      and the remainder to the principal balance of the Note. The outstanding
      principal balance plus unpaid accrued interest are due and payable on
      April 1, 2008.

      Except as otherwise defined herein, all terms defined in the Restated and
Amended Letter Loan Agreement dated March 3, 2006, between the Maker and the
Holder (the "Loan Agreement") will have the same meanings as therein, and the
Holder recognizes that it is subject to all of the provisions set forth in the
third paragraph of the Amendment to Restated and Amended Letter Loan Agreement
dated June 25, 2004 (the "6/25/04 Amendment"). Both principal and interest owing
pursuant to the terms of this Note are payable in the lawful currency of the
United States of America and in immediately available funds. All payments made
on this Note will be applied to this Note when received by the Holder hereof in
collected funds. Any sum not paid when due will bear interest at the rate equal
to the Applicable Rate plus five percent (5.0%) and will be paid at the time of,
and as a condition precedent to, the curing of any Event of Default. During the
existence of any Event of Default, the Holder of this Note may apply payments
received on any amount due hereunder or under the terms of any instrument
hereafter evidencing or securing said indebtedness as the Holder may determine.

                                                           /s/HMJ
                                                          ----------------------
                                                               Page 1 of 3 Pages

      The Maker agrees that if, and as often as, this Note is placed in the
hands of an attorney for collection or to defend or enforce any of the Holder's
rights hereunder, the Maker will pay to the Holder all reasonable attorney's
fees and all expenses incurred by the Holder in connection therewith.

      THIS NOTE IS GIVEN BY THE MAKER AND ACCEPTED BY THE HOLDER PURSUANT TO A
LENDING TRANSACTION CONTRACTED, CONSUMMATED, AND TO BE PERFORMED IN OKLAHOMA
CITY, OKLAHOMA COUNTY, OKLAHOMA, AND THIS NOTE SHALL BE CONSTRUED ACCORDING TO
THE LAWS OF THE STATE OF OKLAHOMA. In the event of any Event of Default, the
Holder may request, and the Maker agrees to furnish to the Holder, agreeable
collateral and such security agreements as the Maker may reasonably require to
secure the indebtedness.

      This Note is issued subject to the terms of the Loan Agreement and the
6/25/04 Amendment (collectively, the "Loan Agreements"). On the breach of any
provision of this Note, or any provision of the Loan Agreements at the option of
the Holder, the entire unpaid indebtedness evidenced by this Note will become
due, payable and collectible then or thereafter as the Holder may elect,
regardless of the date of maturity of this Note. Notice of the exercise of such
option is hereby expressly waived. Failure by the Holder to exercise such option
will not constitute a waiver of the right to exercise the same in the event of
any subsequent default.

      The failure of the Holder to exercise any of the remedies or options set
forth in this Note, or in any instrument securing payment hereof, upon the
occurrence of one or more Events of Default, shall not constitute a waiver of
the right to exercise the same or any other remedy at any subsequent time in
respect to the same or any other Event of Default. The acceptance by the Holder
of any payment which is less than the total of all amounts due and payable at
the time of such payment shall not constitute a waiver of the right to exercise
any of the foregoing remedies or options at that time or any subsequent time, or
nullify any prior exercise of such remedy or option, without the express consent
of the Holder.

      Time is of the essence of each obligation of the Maker hereunder.

      The makers, endorsers, sureties, guarantors and all other persons who may
become liable for all or any part of this obligation severally waive presentment
for payment, protest, demand and notice of nonpayment. Said parties consent to
any extension of time (whether one or more) of payment hereof, the modification
(whether one or more) of payment hereof, release or substitution of all or part
of the security for the payment hereof or release of any party liable for
payment of this obligation. Any such extension or release may be made without
notice to any such party and without discharging such party's liability
hereunder.

      The Maker has the right to prepay this Note in whole or in part at any
time and from time to time without premium or penalty, but with accrued interest
to the date of the prepayment on the amount prepaid.

                                                       /s/HMJ
                                                       ------------------------
                                                              Page 2 of 3 Pages

      The Maker waives presentment for payment, protest and notice of
nonpayment.

      IN WITNESS WHEREOF, the Maker has executed this instrument effective on
the date first above written.

ATTEST:                                 THE BEARD COMPANY

        /s/ Rebecca G. Voth                         /s/ Herb Mee, Jr.
---------------------------             -----------------------------------
    Rebecca G. Voth, Secretary                     Herb Mee, Jr., President

                                                   /s/HMJ
                                                   -------------------------
                                                           Page 3 of 3 PagesExhibit 10.6

                                     SECOND
                              AMENDED AND RESTATED
                                 PROMISSORY NOTE

$9,000,000.00                                           Oklahoma City, Oklahoma
                                                          as of October 7, 2005

      For value received, the undersigned, BEARD PINNACLE, LLC, an Oklahoma
limited liability company (the "Maker"), agrees to all of the terms of this
Promissory Note (this "Note") and promises to pay to the order of PinnOak
Resources, LLC, a Delaware limited liability company (the payee, its successors
and assigns are hereinafter called the "Holder"), at Pointe Plaza Suite 300, 601
Technology Drive, Canonsburg, PA 15317-9523, or at such other place as may be
designated in writing by the Holder of this Note, the principal sum of NINE
MILLION DOLLARS ($9,000,000.00) or, if less than such amount, the aggregate
unpaid principal amount of all advances or loans made by the Holder to the
Maker, and all interest accruing thereon. This Note will be payable as follows:

      1. Interest will accrue on the unpaid principal balance of this Note at
      the per annum interest rate equal to the Wall Street Journal Prime Rate
      (the "Index") plus two percent (2%) (the "Applicable Rate"). Interest will
      commence to accrue as advances or loans are made on the Note and
      thereafter until this Note is paid in full.

      2. If Holder and Maker enter into a Subscription Agreement on or before
      May 1, 2006, providing for the sale and issuance of a membership interest
      in Maker to Holder and/or its affiliates (the "Subscription Agreement"),
      then (i) all unpaid principal amounts advanced pursuant to the terms of
      this Note and all unpaid interest accrued thereon, up to a maximum amount
      of $2,800,000, shall be immediately applied to the purchase or
      subscription price for that membership interest, (ii) any funding provided
      by Holder plus accrued and unpaid interest in excess of $2,800,000 will be
      repaid to Holder, and (iii) this Note shall then be cancelled and of no
      further force or effect. If there is insufficient funding available to
      Beard Pinnacle to pay amounts due under this Note as per (ii) above, the
      provisions under alternative 3 of the Smith Branch Project letter
      agreement between the Holder and Maker dated February 7, 2006 (the
      "Agreement") shall apply.

      3. This Note, as amended and restated, has been made to memorialize the
      loans made to date and additional loans agreed to be made by the Holder to
      the Maker in connection with the Agreement. The parties have agreed that
      if the Holder makes additional loans to the Maker pursuant to the
      Agreement, the provisions of the Agreement concerning repayment or
      conversion of this Note and the release of any collateral will govern.

      Both principal and interest owing pursuant to the terms of this Note are
payable in the lawful currency of the United States of America and in
immediately available funds. All advances made on the Note will be applied to
the Note when received by the Maker hereof. All payments made on this Note will
be applied to this Note when received by the Holder hereof. Any sum not paid
when due will bear interest at the rate equal to the Applicable Rate plus six
percent (6%) and will be paid at the time of, and as a condition precedent to,
the curing of any "Default", as that term is hereinafter defined in this Note.
During the existence of any Default, the Holder of this Note may apply payments
received on any amount due hereunder or under the terms of any instrument
hereafter evidencing or securing said indebtedness as the Holder may determine.

      The Maker agrees that if, and as often as, this Note is placed in the
hands of an attorney for collection or to defend or enforce any of the Holder's
rights hereunder, the Maker will pay to the Holder all reasonable attorney's
fees and all expenses incurred by the Holder in connection therewith.

      This Promissory Note supersedes and replaces those certain Promissory
Notes (i) dated September 29, 2005, in the original amount of FOUR HUNDRED
THOUSAND DOLLARS ($400,000.00), (ii) dated October 7, 2005, in the original
amount of ONE MILLION ONE HUNDRED THOUSAND DOLLARS ($1,100,000), (iii) dated
January 20, 2006, in the original amount of ONE MILLION THREE HUNDRED FIFTY
THOUSAND DOLLARS ($1,350,000), and (iv) that certain Amended and Restated
Promissory Note executed on February 7, 2006, but effective as of October 7,
2005, in the original amount of FIVE MILLION ONE HUNDRED THOUSAND DOLLARS
($5,100,000), between the Maker and the Holder.

      All advances previously or hereafter made against this Note will be
reflected in the Schedule of Advances attached as Exhibit A hereto and will be
periodically updated.

THIS NOTE IS GIVEN BY THE MAKER AND ACCEPTED BY THE HOLDER PURSUANT TO A LENDING
TRANSACTION CONTRACTED, CONSUMMATED, AND TO BE PERFORMED IN OKLAHOMA CITY,
OKLAHOMA COUNTY, OKLAHOMA, AND THIS NOTE SHALL BE CONSTRUED ACCORDING TO THE
LAWS OF THE STATE OF OKLAHOMA. The payment of all indebtedness evidenced by this
Note is unsecured. However, in the event of any Default, the Holder may request,
and the Maker agrees to furnish to the Holder, agreeable collateral and such
security agreements as the Maker may reasonably require to secure the
indebtedness.

      At the option of the Holder, the unpaid balance of this Note, and all
other obligations of the Maker to the Holder, whether direct or indirect,
absolute or contingent, now existing or hereafter arising, shall become
immediately due and payable without presentment, protest, notice or demand upon
the occurrence or existence of one or more of the following events or conditions
("Default"):

      1. any payment required by this Note or any other note or obligation of
the Maker to the Holder or to others is not made when due in the amount
required; and

      2. any default or breach occurs in the performance of any covenant,
obligation, representation, warranty, or provision contained in this Note or in
any other note or obligation of the Maker to Holder or to others;

      No waiver of any payment or other right under this Note by the Holder
shall operate as a waiver of any other payment or right. Any payments hereunder
may, at the option of the Holder, be recorded on this Note and shall be prima
facie evidence of such payments and the unpaid balance of this Note.

      The Maker waives presentment for payment, protest and notice of
nonpayment.

      IN WITNESS WHEREOF, the Maker has executed this instrument this 22nd day
of March, 2006, but effective for all purposes as of October 7, 2005.

                           BEARD PINNACLE, LLC, an Oklahoma
                           limited liability company

                                 /s/W. M. Beard
                           By________________________________
                                 W. M. Beard, Chairman of the Board

<PAGE>

                       Exhibit A
                       ---------

                 Schedule of Advances
                 --------------------

                                      Amount of
                                      ---------
           Date                        Advance
           ----                        -------
      October 7, 2005               $    400,000
     November 4, 2005                 700,000.00
     January 24, 2006                 250,000.00
     February 2, 2006                 625,000.00
     February 8, 2006                 750,000.00
     February 22, 2006                865,000.00
       March 8, 2006                1,015,000.00
      March 22, 2006                  766,834.56
      March 23, 2006                  123,165.44
                                   -------------
           Total                   $5,495,000.00
                                   =============

                                                        /s/HMJ
(Exhibit A as amended effective March 23, 2006)       --------------------------
                                                           (Initials)

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