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).