Quarterly report pursuant to sections 13 or 15(d)

INVENTORIES

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INVENTORIES
9 Months Ended
Sep. 30, 2012
INVENTORIES [Abstract]  
INVENTORIES
4.
INVENTORIES

Inventories include the following:

   
September 30, 2012
   
December 31, 2011
 
   
(thousands of dollars)
 
Raw material
  $ 4,144     $ 3,400  
Petrochemical products
    6,181       6,056  
Total inventory
  $ 10,325     $ 9,456  

Inventories are recorded at the lower of cost, determined on the last-in, first-out method (LIFO), or market.  At September 30, 2012, and December 31, 2011, current cost exceeded LIFO value by approximately $1.8 million and $2.3 million, respectively.

Inventories serving as collateral for the Company's line of credit with a domestic bank were $5.1 million and $4.8 million at September 30, 2012, and December 31, 2011, respectively (see Note 7).

Inventory included products in transit valued at approximately $2.9 million and $2.0 million at September 30, 2012, and December 31, 2011, respectively.