VENTURE AGREEMENT

                                                                    Exhibit 10.4

                                The Beard Company
                           Enterprise Plaza, Suite 320
                              5600 North May Avenue
                          Oklahoma City, Oklahoma 73112
                               Fax (405) 842-9901
                                 (405) 842-2333



                                February 7, 2005


Mr. John Harvison                           FEDERAL EXPRESS
2810 Glenda Ave.                            Telephone:  817-838-4740
Fort Worth, TX 76117
Attention:  Theresa Smith

                                       Re:  BEE/7HBF, LLC Tongzhou Venture
                                            ("BEE/7HBF Tongzhou Venture")

Dear John:

This will confirm our agreement last Friday concerning the subject Venture. The
terms of the revised deal are detailed in the Terms Sheet attached hereto as
"Exhibit A.".

Per the discussions at our January 17 meeting we agreed with you that the
payments for your investment will be spread over a six-month period. As a result
of the revised structure, the new payment schedule is set forth in the Terms
Sheet and highlighted in the attached "Exhibit B."

The organizational mechanics of the deal are depicted in the Terms Sheet. Upon
receipt of a signed copy of this Letter Agreement we will form BEE/7HBF, LLC
(the "LLC") which will in turn form the WFOE (once its name has been determined)
that will own the initial mini-plant (Plant #1). Further, the LLC will have the
first right of refusal to participate in all of Beard's subsequent
fertilizer/composting operations in China until and unless it opts out of a
participation.

If the above meets with your approval, we ask that you please have 7HBF indicate
its acceptance by signing and returning one copy of this Letter Agreement
together with 7HBF's check in the amount of US$62,500 to cover your US$50,000
capital contribution plus the Month 1 cash requirement of US$12,500. Three extra
copies are enclosed for your individual files.

We are excited about the opportunity in China, and are doubly excited to have
you folks as our partner.

Sincerely,
                                            ACCEPTED AND AGREED TO THIS
THE BEARD COMPANY                           11th DAY OF FEBRUARY, 2005

                                            7HBF, Ltd.
/s/ Herb Mee, Jr.                           By:  7HBF Management Company, Ltd.
                                                   General Partner
Herb Mee, Jr., President
                                                   /s/ Randall W. Harvison
HMJr/do                                     By   _____________________________
                                                 Name:  Randall W. Harvison
                                                 Title:    Manager
cc:   Randall W. Harvison
       John D. Harvison
<PAGE>
                                    Exhibit A
                                   Terms Sheet

     Beard Environmental Engineering, L.L.C. ("BEE") is seeking the influx of
US$900,000 to fund this project. Following is a summary of the terms of the
proposed arrangement.:

1.   BEE, an Oklahoma limited liability company, and 7HBF, Ltd., a Texas limited
     partnership ("7HBF"), will form BEE/7HBF, LLC, an Oklahoma limited
     liability company (the "LLC").

2.   BEE and 7HBF will each contribute US$50,000 in cash to the LLC. Such
     contributions will be made to the LLC upon execution of the Letter
     Agreement.

3.   7HBF will loan US$850,000 to the LLC in exchange for a 5-year Non-Recourse
     Promissory Note (the "Note") at the current Applicable Federal Mid Term
     Rate of 3.83%. Advances will be made against the Note in accordance with
     the following schedule:

         Upon execution of
                   the Letter Agreement     -    US$12,500
                 March 1, 2005              -   US$100,000
                 April 1, 2005              -    US$90,000
                 May 1, 2005                -   US$297,500
                 June 1, 2005               -   US$100,000
                 July 1, 2005               -   US$250,000
                                                ----------
                        Total               -   US$850,000
                                                ==========

         Interest will be paid on such Note annually.

4.   The total investment will be $US950,000, as follows:

                                          7HBF          BEE             TOTAL
                                          ----          ---             -----
       Contributions to the LLC  -       US$50,000    US$50,000       US$100,000
       Loan to the LLC           -      US$850,000            -       US$850,000
                                        ----------    ---------       ----------
            Total                -      US$900,000    US$50,000       US$950,000
                                        ==========    =========       ==========

5.   The LLC will use such funds, as required, to fund the ownership and
     operation of BEE's initial plant (Plant #1) for the formulation of Organic
     Chemical Compound Fertilizer ("OCCF") at a facility located in Tongzhou,
     Hebei Province, China. The facility will be controlled and managed by a
     Chinese Wholly Foreign Owned Enterprise ("WFOE") company whose name has not
     yet been determined.

6.   Beijing Beard Sino-American Bio-Tech Engineering Co. Ltd. ("BTEC") will
     provide operations oversight, initial management and accounting services to
     the WFOE and will receive US$30,000 per month therefor during the life of
     the project ("LOP").*
_______________

     *If the LLC elects to participate in a second plant (Plant #2), BTEC will
receive an additional US$20,000 per month during the LOP for Plant #2 for
providing such services. Should additional plants be added thereafter, BTEC may
receive additional compensation therefor. It is the intention of the parties
that, so long as the LLC is the sole participant in BEE's OCCF activities (see
7. below), BEE will receive as total compensation for such services (i) the
total amount of BEE's overhead in China plus (ii) such portion of The Beard
Company's ("BRCO") overhead in Oklahoma City as may be reason