________ ______________
FORM 4 U.S. Securities and Exchange Commission OMB APPROVAL
________ Washington, D.C. 20549 ______________
[ ] Check this box if no longer OMB Number 3235-0287
subject to Section 16. Form Expires: February 1, 1994
4 or Form 5 obligations may Estimated average burden
continue. See Instruction 1(b) hours per response... 0.5
_________________________
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(f) of the Investment Company Act of 1940
1. Name and Address of Reporting 2. Issuer Name and Ticker
Person or Trading Symbol
Shaffer, Jerome D. LSB Industries, Inc. (LSB)
_______________________
(Last) (First) (Middle) 3. IRS or Social Security
No. of Reporting Person
(Voluntary)
208 N.W. 40th
___________________________________ ###-##-####
(Street)
Oklahoma City, Oklahoma 73118
____________________________________
(City) (State) (Zip)
4. Statement for Month/Year: November, 1996
5. If Amendment,Date of Original (Month/Year):
6. Relationship of Reporting Person to Issuer Check all applicable)
X Director ____ 10% Owner ____ Officer (give title below)
___ ____ Other (specify below)
___________________________________
__________________________________________________________________
Table I - Non-Derivative Securities Acquired, Disposed Of,
or Beneficially Owned
__________________________________________________________________
1. Title of 2. Transaction 3. Transaction 4. Securities Acquired
Security Date (Month/ Code (A) or Disposed of
Day/Year) (Instr. 8) (D)(Instr. 3, 4, 5)
_____________ ___________________
Code V Amount (A) Price
or
(D)
______ _____ ______ ____ _____
Common Stock 11/15/96 M - 10,000 A $3.125
5. Amount of 6. Ownership Form: 7. Nature of
Securities Direct (D) or Indirect
Beneficially Indirect (I) Beneficial
Owned at End (Instr. 4) Ownership
of Month (Instr. 4)
(Instr. 3 & 4)
120,034 D -
_____________________________________________________________________
Reminder: Report on a separate line for each Page 1 of 2
class of securities beneficially SEC 1474 (3/91)
owned directly or indirectly
(Print or Type Response)
FORM 4 (continued) Table II - Derivative Securities Acquired, Disposed
of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
_______________________________________________________________________
1. Title of 2. Conversion 3. Transaction 4. Transaction 5. Number of
Security or Exercise Date Code Derivative
(Instr. 3) Price of (Month/Day/ (Instr. 8) Securities
Derivative Year) Acquired (A)
Security or Disposed
_____________ ____________ _____________ ______________ ______________
Code V (A) (D)
_____ _____ ______ ______
Nonqualified
Stock Option $ 3.125 - M - - 10,000
Nonqualified
Stock Option $ 9.00 - - - - -
Nonqualified
Stock Option $ 5.375 - - - - -
Preferred
"C" Stock $11.55 - - - - -
6. Date Exercisable 7. Title and Amount of 8. Price of
and Expiration Underlying Securities Derivative
Date (Month/Day/ (Instr. 3 and 4) Security
Year) (Instr. 5)
___________________ ________________________ _____________
Amount (Instr. 5)
Date Expir- or
Exer- ation No. of
cisable Date Title Shares
_________ _______ __________ _________ ______________
6/1/92 6/1/97 Common Stock 5,000 -
10/31/94 4/30/99 Common Stock 5,000 -
10/31/95 4/30/00 Common Stock 5,000 -
(2) (2) Common Stock 4,329 -
9. Number of 10. Ownership Form 11. Nature of Indirect
Derivative of Derivative Beneficial Owner-
Securities Security: ship (Instr. 4)
Beneficially Direct (D) or
Owned at End Indirect (I)
of Month (Instr. 4)
(Instr. 4)
_________________ ___________________ ______________________
(1) D -
(1) D -
(1) D -
1,000 D -
__________________________
Explanation of Responses:
(1) Nonqualified Stock Option ("NQSO") to purchase the Company's Common Stock
granted pursuant to the Company's 1993 Non-Employee Director Stock Option
Plan (the "1993 Plan"). NQSO's granted under the 1993 Plan may be exer-
cised at any time after six months from the date the NQSO was granted. To
the extent not exercised, the NQSO terminates upon the fifth anniversary
of the date the NQSO was granted or upon the cessation of the optionee as
a member of the Board of Directors of the Company.
(2) Each share of the Company's $3.25 Convertible Exchangeable Class C Pre-
ferred Stock, Series 2 is convertible at the option of the holder into
4.329 shares of the Company's Common Stock. Each share is convertible as
long as such is outstanding.
**Intentional misstatements or omissions
constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
/s/ Jerome D. Shaffer December 8, 1996
________________________ ________________
**Signature of Reporting Date
Person
Jerome D. Shaffer
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Page 2 of 2
BALL\K-M\LSB\FORMS345\EDGAR\11-96F4.JDS SEC 1474 (3/91)
