Quarterly report pursuant to sections 13 or 15(d)

INVENTORIES

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INVENTORIES
9 Months Ended
Sep. 30, 2011
INVENTORIES [Abstract]  
INVENTORIES
4. INVENTORIES

Inventories include the following:

   
September 30, 2011
   
December 31, 2010
 
Raw material
  $ 2,608,420     $ 4,023,324  
Petrochemical products
    5,390,230       1,893,959  
Total inventory
  $ 7,998,650     $ 5,917,283  

Inventories are recorded at the lower of cost, determined on the last-in, first-out method (LIFO), or market.  At September 30, 2011, and December 31, 2010, current cost exceeded LIFO value by approximately $3,156,000 and $2,274,000, respectively.

Inventories serving as collateral for the Company's line of credit with a domestic bank were $4.66 million and $4.08 million at September 30, 2011, and December 31, 2010, respectively (see Note 7).