CUSIP No. 482564101

	1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only) Valves Incorporated of Texas

	2.	Check the Appropriate Box if a Member of a Group (See Instructions)
		(a)		o
		(b)		x

	3.	SEC Use Only

	4.	Citizenship or Place of Organization Texas

Number of Shares Beneficially Owned by Each Reporting Person With			5.		Sole Voting Power 0

			6.		Shared Voting Power 836,834

			7.		Sole Dispositive Power 0

			8.		Shared Dispositive Power 836,834

	9.	Aggregate Amount Beneficially Owned by Each Reporting Person 836,834

	10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) o

	11.	Percent of Class Represented by Amount in Row (9) 8.1%

	12.	Type of Reporting Person (See Instructions) CO

Item 1.

	(a)	Name of Issuer KMG Chemicals, Inc.

	(b)	Address of Issuer’s Principal Executive Offices 10611 Harwin Drive, Suite 402 Houston, Texas 77036

Item 2.

	(a)	Name of Person Filing Valves Incorporated of Texas

	(b)	Address of Principal Business Office or, if none, Residence 10600 Fallstone Road Houston, Texas 77099

	(c)	Citizenship Texas

	(d)	Title of Class of Securities Common Stock, par value $0.01 per share. Acquired 651,000 of these shares on October 15, 1996, prior to KMG Chemicals, Inc. becoming a public company; acquired 302,500 of these shares on March 18, 1998; and acquired 95,350 of these shares as a stock dividend on March 30, 2001. Disposed of 212,016 shares on July 6, 2006.

	(e)	CUSIP Number 482564101

Item 3.	If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

	(a)	o	Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

	(b)	o	Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

	(c)	o	Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

	(d)	o	Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8).

	(e)	o	An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E);

	(f)	o	An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F);

	(g)	o	A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);

	(h)	o	A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);

	(i)	o	A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);

	(j)	o	Group, in accordance with §240.13d-1(b)(1)(ii)(J).

Item 4.	Ownership

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

	(a)	Amount beneficially owned: 836,834 shares of Common Stock.

	(b)	Percent of class: 8.1%

	(c)	Number of shares as to which the person has:
		(i)	Sole power to vote or to direct the vote 0

		(ii)	Shared power to vote or to direct the vote 836,834

		(iii)	Sole power to dispose or to direct the disposition of 0

		(iv)	Shared power to dispose or to direct the disposition of 836,834

Item 5.	Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following o.

Item 6.	Ownership of More than Five Percent on Behalf of Another Person

Not Applicable.

Item 7.	Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person

Not Applicable.

Item 8.	Identification and Classification of Members of the Group

Not Applicable.

Item 9.	Notice of Dissolution of Group

Not Applicable.

Item 10.	Certification

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of, or with the effect of, changing or influencing the control of the issuer of the securities, and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: July 14, 2006

	Valves Incorporated of Texas


	By:	/s/ Fred C. Leonard
	Name: Fred C. Leonard
	Title: President

Exhibit A

The securities being reported by Valves Incorporated of Texas (“Valves”), are beneficially owned by the following person (1).

Control Person		Number of Shares Beneficially Owned
Fred C. Leonard		836,834
Principal Business Address: 10600 Fallstone Road Houston, Texas 77099

(1). Mr Leonard is the Chairman, President and majority owner of the outstanding stock of Valves Incorporated of Texas, and as such he exercises the power to direct the vote and direct the disposition of the shares of KMG Chemicals, Inc. held by Valves Incorporated of Texas as record owner.

Exhibit B

JOINT FILING AGREEMENT

The undersigned hereby agree that the statement on Schedule 13G filed herewith and any amendments thereto, relating to the common stock, par value, of Valves Incorporated of Texas, is, or will be, filed jointly with the Securities and Exchange Commission pursuant to Rule 13d-1 (k) (1) under the Securities Exchange Act of 1934, as amended, on behalf of each such person.

IN WITNESS WHEREOF, the undersigned have executed this Joint Filing Agreement.

Dates: July 14, 2006

	Valves Incorporated of Texas


	By:	/s/ Fred C. Leonard
	Name: Fred C. Leonard
	Title: President


	Fred C. Leonard


	/s/ Fred C. Leonard
	Name: Fred C. Leonard

	UNITED STATES
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549
	SCHEDULE 13G (Rule 13d-102)

o	Rule 13d-1(b)
o	Rule 13d-1(c)
x	Rule 13d-1(d)