INVENTORIES:

Inventories consisted of the following:



	September 30, 2011		December 31, 2010
Natural gas and NGLs, excluding propane	$	118,989	$	168,378
Propane	75,085		76,341
Appliances, parts and fittings and other	112,821		117,339
Total inventories	$	306,895	$	362,058

We utilize commodity derivatives to manage price volatility associated with our natural gas inventory and designate certain of these derivatives as fair value hedges for accounting purposes. Changes in fair value of the designated hedged inventory have been recorded in inventory on our consolidated balance sheets and cost of products sold in our consolidated statements of operations.