Document:

PROMISSORY NOTE
                                                              Account Officer
Principal     Loan Date     Maturity    Loan No    Call/Coll     Initials
$125,150.00   02-27-2004   04-27-2004   11012973   4(2N)/OPN        TJS

References  in the shaded  area are for  Lender's  use only and do not limit the
applicability  of this document to any  particular  loan or item. Any item above
containing ***** has been omitted due to text length limitations.

Borrower: The Beard Company (TIN: 73-0970298)  Lender: BANK OF NICHOLS HILLS
          5600 N. May Ave., Suite 320                  2644 N. W. 63rd
          Oklahoma City, OK 73112                      P.O. Box 18329 (73154)
                                                       Oklahoma City, OK 73116

Principal Amount: $125,150.00
Interest Rate: 7.000%
Date of Note: February 27,2004

PROMISE  TO PAY.  The  Beard  Company  ("Borrower")  promises  to pay to BANK OF
NICHOLS  HILLS  ("Lender"),  or order,  in lawful money of the United  States of
America,  the principal amount of One Hundred  Twenty-five  Thousand One Hundred
Fifty & 00/100 Dollars ($125,150.00) or so much as may be outstanding,  together
with  interest  at the  rate of  7.000%  per  annum  on the  unpaid  outstanding
principal balance of each advance. Interest shall be calculated from the date of
each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan In one payment of all outstanding principal
plus all accrued unpaid interest on April 27, 2004.  Unless  otherwise agreed or
required by applicable law, payments will be applied first to any accrued unpaid
interest; then to prlnclpal; and then to any unpaid collection costs. The annual
interest rate for this Note Is computed on a 365/360 basis; that is, by applying
the ratio of the annual interest rate over a year of 360 days, multiplied by the
outstanding  principal  balance,  multiplied  by the  actual  number of days the
principal  balance is outstanding.  Borrower will pay Lender at Lender's address
shown above or at such other place as Lender may designate in writing.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges
are  eamed  fully as of the date of the loan and will not be  subject  to refund
upon early  payment  (whether  voluntary or as a result of  default),  except as
otherwise  required by law.  Except for the foregoing,  Borrower may pay without
penalty  all or a portion  of the  amount  owed  earlier  than it is due.  Early
payments will not,  unless agreed to by Lender in writing,  relieve  Borrower of
Borrower's obligation to continue to make payments.  Rather, early payments will
reduce the principal  balance due.  Borrower  agrees not to send Lender payments
marked "paid In full",  "without  recourse",  or similar  language.  If Borrower
sends such a payment, Lender may accept it without losing any of Lender's rights
under this Note,  and Borrower will remain  obligated to pay any further  amount
owed  to  Lender.  All  written  communications   concerning  disputed  amounts,
including any check or other payment  instrument that indicates that the payment
constitutes  "payment in full" of the amount owed or that is tendered with other
conditions or limitations or as full  satisfaction  of a disputed amount must be
mailed or delivered to: BANK OF NICHOLS HILLS,  2644 N.W.  63rd,  P.O. Box 18329
(73154), Oklahoma City, OK 73116.

INTEREST  AFTER  DEFAULT.  Upon  default,  including  failure  to pay upon final
maturity,  Lender,  at its  option,  may, if  permitted  under  applicable  law,
increase the interest rate on this Note 5.000  percentage  points.  The interest
rate will not exceed the maximum rate permitted by applicable law.

DEFAULT.  Each of the following shall  constitute an event of default ("Event of
Default") under this Note:

     Payment  Default.  Borrower  fails to make any payment  when due under this
     Note.

     Other Defaults. Borrower fails to comply with or to perform any other term,
     obligation,  covenant or condition  contained in this Note or in any of the
     related  documents  or to comply with or to perform  any term,  obligation,
     covenant or condition  contained in any other agreement  between Lender and
     Borrower.

     False  Statements.  Any  warranty,  representation  or  statement  made  or
     furnished to Lender by Borrower or on Borrower's  behalf under this Note or
     the related  documents  is false or  misleading  in any  material  respect,
     either now or at the time made or furnished or becomes  false or misleading
     at any time thereafter.

     Insolvency.  The  dissolution or  termination of Borrower's  existence as a
     going business,  the insolvency of Borrower,  the appointment of a receiver
     for any part of  Borrower's  property,  any  assignment  for the benefit of
     creditors,  any  type  of  creditor  workout,  or the  commencement  of any
     proceeding under any bankruptcy or insolvency laws by or against Borrower.

     Creditor  or  Forfeiture   Proceedings.   Commencement  of  foreclosure  or
     forfeiture   proceedings,   whether  by  judicial  proceeding,   self-help,
     repossession  or any other  method,  by any  creditor of Borrower or by any
     governmental agency against any collateral securing the loan. This includes
     a garnishment of any of Borrower's  accounts,  including  deposit accounts,
     with Lender.  However,  this Event of Default shall not apply if there is a
     good faith dispute by Borrower as to the validity or  reasonableness of the
     claim which is the basis of the creditor or  forfeiture  proceeding  and if
     Borrower  gives  Lender  written  notice  of  the  creditor  or  forfeiture
     proceeding  and  deposits  with  Lender  monies  or a  surety  bond for the
     creditor or forfeiture  proceeding,  in an amount  determined by Lender, in
     its sole discretion, as being an adequate reserve or bond for the dispute.

     Events Affecting Guarantor. Any of the preceding events occurs with respect
     to any  Guarantor  of any of the  indebtedness  or any  Guarantor  dies  or
     becomes  incompetent,  or revokes or disputes the validity of, or liability
     under,  any guaranty of the  indebtedness  evidenced  by this Note.  In the
     event of a death, Lender, at its option, may, but shall not be required to,
     permit the  Guarantor's  estate to assume  unconditionally  the obligations
     arising  under the  guaranty in a manner  satisfactory  to Lender,  and, in
     doing so, cure any Event of  Default.

     Change In Ownership.  Any change in ownership of twenty-five  percent (25%)
     or more of the common stock of Borrower.

     Adverse Change.  A material  adverse change occurs in Borrower's  financial
     condition,  or Lender  believes the prospect of payment or  performance  of
     this Note is impaired.

     Insecurity. Lender in good faith believes itself insecure.

     Cure Provisions. If any default, other than a default in payment is curable
     and if  Borrower  has not  been  given a  notice  of a  breach  of the same
     provision of this Note within the preceding  twelve (12) months,  it may be
     cured (and no event of  default  will have  occurred)  if  Borrower,  after
     receiving  written notice from Lender  demanding cure of such default:  (1)
     cures the default  within  fifteen (15) days;  or (2) if the cure  requires
     more than fifteen (15) days, immediately initiates steps which Lender deems
     in  Lender's  sole  discretion  to be  sufficient  to cure the  default and
     thereafter  continues  and  completes all  reasonable  and necessary  steps
     sufficient to produce compliance as soon as reasonably practical.

LENDER'S  RIGHTS.  Upon default,  Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest  immediately  due, and then
Borrower will pay that amount.

ATTORNEYS' FEES;  EXPENSES.  Lender may hire or pay someone else to help collect
this Note if Borrower does not pay.  Borrower will pay Lender that amount.  This
includes,  subject to any limits under applicable law, Lender's  attorneys' fees
and  Lender's  legal  expenses,  whether  or not there is a  lawsuit,  including
without  limitation  all  attorneys'  fees and  legal  expenses  for  bankruptcy
proceedings  (including  efforts  to  modify  or vacate  any  automatic  stay or
injunction),  and appeals.  If not prohibited by applicable  law,  Borrower also
will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower against
the other.

GOVERNING  LAW.  This  Note will be  governed  by,  construed  and  enforced  in
accordance with federal law and the laws of the State of Oklahoma. This Note has
been accepted by Lender in the State of Oklahoma.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of Oklahoma County, State of Oklahoma.

DISHONORED  ITEM FEE.  Borrower  will pay a fee to Lender of $10.00 if  Borrower
makes a  payment  on  Borrower's  loan  and the  check or  other  payment  order
including any preauthorized charge with which Borrower pays is later dishonored.

RIGHT OF SETOFF.  To the extent  permitted by applicable  law, Lender reserves a
right of  setoff in all  Borrower's  accounts  with  Lender  (whether  checking,
savings,  or some other  account).  This  includes all accounts  Borrower  holds
jointly  with  someone  else and all  accounts  Borrower may open in the future.
However,  this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower  authorizes Lender, to the
extent  permitted by  applicable  law, to charge or setoff all sums owing on the
debt   against  any  and  all  such   accounts  and  at  Lender's   option,   to
administratively  freeze all such  accounts to allow Lender to protect  Lender's
charge and setoff rights provided in this paragraph.

COLLATERAL. This loan is unsecured.

LINE OF CREDIT.  This Note  evidences a straight line of credit.  Once the total
amount of principal has been advanced,  Borrower is not entitled to further loan
advances.  Advances  under this Note may be  requested  orally by Borrower or as
provided in this  paragraph.  Lender may,  but need not,  requlre  that all ora1
requests  be  confirmed  in  writing.  All  communications,   instructions,   or
directions  by  telephone  or otherwise to Lender are to be dlrected to Lender's
office shown above.  The following  persons  currently are authorized to request
advances and authorize  payments under the line of credit until Lender  receives
from Borrower,  at Lender's address shown above, written notice of revocation of
their authority: Herb Moo, Jr., P.resldentlCFO of The Beard Company; and William
M. Beard,  Chairman/CEO  of The Beard Company.  Borrower agrees to be liable for
all sums  elther:  (A)  .advanced in  accordance.  with the  instructions  of an
authorized person or (B) credited to any of Borrower's accounts with Lender. The
unpaid  pnnclpal  balance  owing on this  Note at any time may be  evidenced  by
endorsements  on this Note or by  Lender's  internal  records,  including  daily
computer print-outs.  Lender will have no obligation to advance funds under this
Note if: (A)  Borrower or any  guarantor  is in default  under the terms of this
Note or any agreement that Borrower or any guarantor has with Lender,  including
any agreement made in connection  with the signing of this Note; (B) Borrower or
any guarantor  ceases doing business or is insolvent;  (C) any guarantor  seeks,
claims or  otherwise  attempts  to limit,  modify  or  revoke  such  guarantor's
guarantee of this Note or any other loan with  Lender;  (D) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized by
Lender; or (E) Lender in good faith believes itself insecure.

SUCCESSOR INTERESTS.  The terms of this Note shall be binding upon Borrower, and
upon Borrower's heirs,  personal  representatives,  successors and assigns,  and
shall inure to the benefit of Lender and its successors and assigns.

GENERAL  PROVISIONS.  Lender may delay or forgo  enforcing  any of its rights or
remedies under this Note without losing them.  Borrower and any other person who
signs,  guarantees or endorses this Note,  to the extent  allowed by law,  waive
presentment,  demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise  expressly stated in writing,  no party
who signs  this  Note,  whether  as  maker,  guarantor,  accommodation  maker or
endorser,  shall be released from liability.  All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release
any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security  interest in the collateral;  and take any other action deemed
necessary by Lender without the consent of or notice to anyone. All such parties
also agree that Lender may modify this loan  without the consent of or notice to
anyone other than the party with whom the  modification is made. The obligations
under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE,  BORROWER READ AND  UNDERSTOOD ALL THE PROVISIONS OF
THIS  NOTE.  BORROWER  AGREES TO THE TERMS OF THE  NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

THE BEARD Company

By: /s/ Herb Mee, Jr.
    Herb Mee, Jr., President/CFO of The Beard CompanyPROMISSORY NOTE

$200,000.00                                           Dated: December 1, 2004
                                                      Oklahoma City, Oklahoma

     FOR VALUE  RECEIVED,  The  Beard  Company,  an  Oklahoma  corporation  (the
"Borrower"),  unconditionally promises to pay to the order of Cibola Corporation
(together  with any  assignees or  successors-in-interest,  the  "Lender"),  the
principal  sum of Two Hundred  Thousand  Dollars  ($200,000.00),  plus  interest
accruing on the  principal  amount  outstanding  hereunder  from time to time as
further set forth below.

1.   Payment Terms/Interest Rate.

     (a)  Interest  Rate.  The Borrower  shall pay interest to the Lender on the
          outstanding and unpaid  principal amount due hereunder at a rate equal
          to fifteen percent (15%) per annum.

     (b)  Maturity Date Payment.  Any unpaid  principal and all accrued,  unpaid
          interest thereon shall be due and payable in full to the Lender on the
          Maturity  Date. The Maturity Date of this Note shall be the earlier of
          (i) July 31, 2005, or (ii) the date this Note is accelerated  pursuant
          to the terms hereof.

     (c)  Prepayment. This Note may be prepaid at any time, in whole or in part,
          without premium or penalty,  and any such prepayment  shall be applied
          first to accrued  interest and then to  principal in inverse  order of
          payments due.

2.   Payments.  Payments of principal  and interest are to be made at the office
     of the Lender located at 1131 13th Street,  Suite 206, Cody, Wyoming 82414,
     in lawful money of the United  States of America.  All  payments  hereunder
     shall be applied  first to interest  due and the balance  shall  reduce the
     principal balance.

3.   Default.  Each of the following shall  constitute a default under this Note
     (individually, a "Default"):

     (a)  Nonpayment.  The  Borrower  fails to pay when due any  principal of or
          interest on this Note.

     (b)  Breach of  Representations.  If any  representation or warranty of the
          undersigned herein is false or misleading in any material respect.

     (c)  Bankruptcy,   Insolvency,  Etc.  The  Borrower  becomes  insolvent  or
          generally  fails to pay,  or admits in writing  its  inability  to pay
          debts as they become due; or applies for,  consents to, or  acquiesces
          in the  appointment of a trustee,  receiver or other custodian for the
          Borrower or any of its property, or makes a general assignment for the
          benefit of creditors or, in the absence of such  application,  consent
          or acquiescence,  a trustee,  receiver or other custodian is appointed
          for the Borrower or for a  substantial  part of its  property;  or any
          bankruptcy,  reorganization  or debt  arrangement,  or  other  case or
          proceeding  under any bankruptcy or insolvency law, or any dissolution
          or liquidation proceeding is commenced in respect of the Borrower and,
          if such case or proceeding  is not  commenced by the  Borrower,  it is
          consented to or acquiesced in by the Borrower;  or the Borrower  takes
          any action to authorize, or in furtherance of, any of the foregoing.

     (d)  Adverse  Judgments.  Entry  by  any  court  of a  final  nonappealable
          judgment against the Borrower in an amount of $10,000 or greater which
          is not  satisfied  within  thirty (30) days,  or an  attachment of any
          material part of the Borrower's assets.

4.   Effect of  Default.  If any Default  shall  occur,  this Note shall  become
     immediately  due and  payable at the option of the  Lender,  and the Lender
     shall have all rights and remedies to which it is entitled  under this Note
     or applicable  law.  While any Default  exists  hereunder,  all sums herein
     promised  to be paid shall  bear  interest  at the rate  equal to  eighteen
     percent  (18%) per annum,  accrued  from the date of Default to the date on
     which such Default is cured to the  satisfaction of the holder hereof.  All
     past due sums will be paid at the time of and as a condition  precedent  to
     the  curing of any  Default  hereunder.  During the  existence  of any such
     Default,  the holder of this Note may apply payments received on any amount
     due  hereunder  or under  the  terms  of any  instrument  now or  hereafter
     evidencing or securing any said indebtedness as said holder may determine.

5.   Remedies  Separate.  The Lender may  pursue any rights or  remedies  as the
     holder of this Note independently or concurrently. All rights, remedies, or
     powers herein conferred upon the Lender shall, to the extent not prohibited
     by law, be deemed cumulative and not exclusive of any others thereof, or of
     any other rights,  remedies, or powers available to the Lender. No delay or
     omission of the Lender to exercise any right, remedy, or power shall impair
     the same or be construed  to be a waiver of any Default or an  acquiescence
     thereto.  No waiver of any Default shall extend to or affect any subsequent
     Default or impair any rights,  remedies, or powers available to the Lender.
     No single or partial exercise of any right, remedy, or power shall preclude
     other or future exercise thereof by the Lender.

6.   Collection Expenses. In addition to and not in limitation of the foregoing,
     the Borrower further agrees to pay all expenses,  including but not limited
     to reasonable attorneys' fees and legal expenses, incurred by the Lender in
     endeavoring to collect any amounts payable hereunder that are not paid when
     due, whether by acceleration or otherwise.

7.   Waivers.  The  Borrower,  endorsers,  sureties,  guarantors  and all  other
     persons  who  may  become  liable  for all or any  part of the  obligations
     referenced herein, whether primarily or secondarily, severally waive notice
     of default,  notice of dishonor,  notice of  acceleration,  presentment for
     payment,  protest and notice of  nonpayment.  Said  parties  consent to any
     extension of time (whether one or more) for payment hereof,  any release of
     all or any part of the  security  for the  payment  hereof,  if any, or any
     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 said party's liability hereunder.

8.   Lawful Rate.  Nothing contained in this Note shall be deemed to require the
     payment of  interest  by the  Borrower  in excess of the  amount  which the
     Lender may lawfully  charge under the  applicable  usury laws. In the event
     that the interest provided herein shall exceed such lawful charge, then the
     amount of interest payable hereunder by the undersigned shall be reduced to
     the maximum amount of such lawful charge.

9.   Representations   of  the  Borrower.   The  Borrower  hereby  warrants  and
     represents as follows:

     (a)  This Note is the legal,  valid and binding  obligation of the Borrower
          enforceable in accordance with its terms.

     (b)  The Borrower is not a party to or otherwise subject to any contract or
          agreement that restricts or otherwise  affects its right or ability to
          execute  this  Note  or to  perform  any of  its  terms.  Neither  the
          execution nor delivery of this Note, nor fulfillment of nor compliance
          with its terms  and  provisions  will  conflict  with,  or result in a
          breach of the terms,  conditions  or  provisions  of, or result in the
          creation  of any lien  upon any of the  properties  or  assets  of the
          Borrower pursuant to, or require any consent, approval or other action
          pursuant to any agreement, instrument or laws to which the Borrower is
          subject.

10.  Governing  Law.  This Note shall be governed by and construed in accordance
     with the laws of the State of Oklahoma.

11.  Right of  Offset.  Either  before  or after  the  occurrence  of a  Default
     hereunder, any amounts due from the Lender to the Borrower such as, but not
     limited to, those certain  quarterly  estimated  tax payments  historically
     made by the Lender to the Borrower,  are pledged to secure  payment of this
     Note and any other obligation to the Lender by the Borrower, and may at any
     time  while  the  whole or any  part of the  obligations  hereunder  remain
     unpaid,  either  before or after the  Maturity  Date,  and with or  without
     notice, be appropriated, held or applied toward the payment of this Note or
     any other obligation to the Lender by the Borrower.

     IN WITNESS WHEREOF,  the undersigned has executed this Note effective as of
the date first above written.

                                     THE BEARD COMPANY

                                     By:   /s/ Herb Mee, Jr.
                                           Herb Mee, Jr., President

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