Quarterly report pursuant to sections 13 or 15(d)

INVENTORIES

 v2.3.0.11
INVENTORIES
6 Months Ended
Jun. 30, 2011
INVENTORIES [Abstract]  
INVENTORIES
4. INVENTORIES

Inventories include the following:

   
June 30, 2011
   
December 31, 2010
 
Raw material
  $ 2,105,510     $ 4,023,324  
Petrochemical products
    4,056,780       1,893,959  
Total inventory
  $ 6,162,290     $ 5,917,283  



Inventories are recorded at the lower of cost, determined on the last-in, first-out method (LIFO), or market.  At June 30, 2011, and December 31, 2010, current cost exceeded LIFO value by approximately $3,372,000 and $2,274,000.

Inventories serving as collateral for the Company's line of credit with a domestic bank were $3.66 million and $4.08 million at June 30, 2011, and December 31, 2010, respectively (see Note 7).