SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended           June 30, 1997        

Commission File Number         0-643        

Corning Natural Gas Corporation
(Exact name of registrant as specified in its charter)

    New York                 16-0397420          
(State or other jurisdiction of        (I.R.S. Employer Identification
incorporation or organization)           No.)

330 W. William Street, PO Box 58, Corning, New York  14830      
607-936-3755                                     
(Registrant's telephone number, including area code)

                                  
Former name, former address and former fiscal year, if change since last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes       X    No    

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.

                   Yes       No   

There were 460,000 shares of Common Stock outstanding at the end of the
quarter.  There is only one class of Common Stock and no Preference Stock
outstanding.
Management's Discussion

Operating revenues for the quarter ending June 30, 1997 were $2,113,780 or
129% more than the quarter ending September 30, 1996 and $630,451 or 14%
less than the quarter ending June 30, 1996.

Degree days for the quarter ending June 30, 1997 were 1,004 or 1,731% more
than the quarter ending September 30, 1996 and 73 or 7% more than the
quarter ending June 30, 1996.  Since much of the Company's sales are
dependent on weather conditions, the effects of the changes in degree days
are reflected in the total MCF (thousand cubic feet) deliveries.


                                                Increase (Decrease)
                    Actual MCF         From Quarter Ending
                     Deliveries                    06/30/97

Quarter Ending 06/30/97     1,490,737
Quarter Ending 09/30/96        876,534      (614,203)
Quarter Ending 06/30/96     1,545,045          54,308

MCF deliveries include transportation of customer owned gas for specific end
use customers for which the Company receives a fee equal to its normal markup
for transporting the gas.

Operating expenses, made up largely of the cost of purchased gas were
$2,183,583 or 153% more than the quarter ending September 30, 1996 and
$548,860 or 13% less than the quarter ending June 30, 1996.

Net Income was $251,951 more than the quarter ended September 30, 1996 and
$84,515 less than the quarter ending June 30, 1996.

Since the Company's business is seasonal by quarters, results for the first
nine months of fiscal year 1997 should not be used as an indication of what
results for the full twelve months of fiscal year 1997 may be.

In September 1995 the Company purchased the assets of a local gas distribution
system, Finger Lakes Gas Company, through the Federal Bankruptcy Court.
Finger Lakes Gas served customers in the Hammondsport, NY area and had a
customer base of approximately 320 customers.  The Company was able to
purchase this all plastic system with a bid of $560,000.  The Company was
pleased to purchase these assets that originally cost over $1.5 million to
construct for its relatively low bid. The capital to purchase these assets
was obtained through short term debt.  The Company has not found it
necessary to apply for an increase in rates on this part of our system
which means the original rates made effective in 1990 remain in effect
six years later.

    Shortly after the Company took possession of the system, Mercury Aircraft,
Inc. announced it would purchase the former Taylor Wine Company facilities
and centralize their other plants.  The reopening of this major facility
will most certainly contribute toward the stability and future viability of
the new gas system which is now part of the Company.  The former
Finger Lakes Gas Company's operations, did not have significant impact on
1995, but contributed in excess of $150,000 to gross margin (revenues
less gas cost) for the period ended September 30, 1996.

In December, 1994 the New York Public Service Commission instituted
a proceeding to address issues related to the emerging competitive natural
gas market.  This proceeding was intended to provide a framework whereby
access to facilities on upstream pipelines made available by FERC Order 636
would be available to end use customers on the Local Distribution Company
level.  New tariff filings were approved and became effective September 1,
1996.  The Company considers this a transitional step towards full unbundling
of services with future changes made as circumstances warrant.

The Company received approval for a rate increase form the New York State
Public Service Commission of approximately $124,000 in revenues with an
effective date of September 1, 1996.

Internal generation of funds should be sufficient to meet the needs of the
Company coupled with some intermittent short-term borrowings.

There has been no change in independent public accountants.  The Company
has not filed any reports on Form 8-K for the quarter ended June 30, 1997.

The information furnished herewith reflects all adjustments which are in the
opinion of management necessary to a fair statement of the results for the
period.  Certain information and footnote disclosure normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to SEC rules
and regulations, although the Company believes the disclosures which are
made are adequate to make the information presented not misleading.

The condensed financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's latest
annual report on Form 10-KSB.

The statements contained herein have not been examined or certified by a
firm of certified public accountants.

There were no sales of unregistered securities (debt or equity) during the
fiscal quarter ending June 30, 1997.
SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

                        CORNING NAATURAL GAS CORPORATION


Date          July 28, 1997       THOMAS K. BARRY                              
    Thom
as K. Barry, Chairman of
                             the Board, President and C.E.O.



Date          July 28, 1997       GARY K. EARLEY      
                        Gary K. Earley, Treasurer


         CORNING NATURAL GAS CORPORATION              CONSOLIDATED STATEMENT OF
INCOME                  
     UNAUDITED                                    FORM 10 QSB                  
                   
                                                                          
                         FOR QUARTER ENDED        NINE MONTHS ENDED
                    06/30/97    06/30/96    06/30/97         06/30/96 
    
Operating Revenues $3,756,539  $4,386,990  $16,271,835     $13,356,313
Cost and Expense                                           
Operating Expense   3,612,447   4,161,307   14,425,959      11,907,061
Interest Expense        201,039     187,664      651,714         407,652
Income Tax                915      26,218      412,704         450,713
Other Deductions          218       1,029        1,432           2,662

Total               3,814,619   4,376,218   15,491,809      12,768,088   
Operating Income        (58,080)     10,722      780,026         588,225

Other Income                   100       2,884          988          92,143

Corning Natural Gas Appliance Corp.:                       
Operating Revenues    428,209     494,754    1,683,001       1,035,759
Depreciation           58,462      58,328      180,679         116,579
Other Op Expense      333,252     373,858    1,263,074         757,629
Federal Income Tax     13,493      26,687       85,653          71,604

Net Income Appl Corp. 23,002       35,881      153,595          89,947
                                                      
Net Income        $  (34,978)      49,537      943,609         770,315

Earnings Per Share   $  (.08)        .108        2.032           1.675
                                                      
Dividends Per Share      .32         .315          .96             .63
                                                      
Total Dividends Paid 147,200      144,901      441,600         289,801  
Shares of common stock outstanding were 460,000 at June 30, 1997
Earnings per share = Net Income as shown above divided by 460,000 shares.       
Dividends per share = Dividends paid divided by shares outstanding at
the time.     
                                                                          
See Management's Discussion & Analysis on Page 5.                              
    
                                                                          
                                                                          

                             
               CORNING NATURAL GAS CORPORATION
             CONSOLIDATED STATEMENT OF CASH FLOWS                          
                   FORM 10-QSB - UNAUDITED                      

                                                 JUNE 30, 1997     JUNE 30, 1996

CASH FLOWS FROM OPERATING ACTIVITIES:                                     
Net Income                                   $            934,609        $  
770,316
Adjustments to Reconcile Net Income
to Net Cas                        
Provided by Operating Activities: 
Depreciation                                           538,450            355,92
9
Allowance for Funds Used During Const.                  0             0   
Changes in Assets and Liabilities:                    
(Increase) Decrease in:                          
Accounts Receivable                                 (  360,926)          231,495
Materials, Supplies & Appliance Inventory      559,030          (475,915)
Other Deferred Charges                       1,469,088          2,487,393
Prepaid and Other Assets                           106,756           (124,741)
Increase (Decrease) in:                          
Accounts Payable                                355,275            (222,258)
Accrued General Taxes                              74,455              208,596
Accrued Federal Income Tax                       39,249              (84,484)
Deferred Federal Income Tax                   (201,976)            (390,942)
Other Liabilities and Deferred Credits       (872,813)            ( 38,093)
Net Cash Provided (used) by
    Operating Activities                        2,641,197            2,717,296
                                       
CASH FLOWS FROM INVESTING ACTIVITIES:            
Capital Expenditures                                 (621,769)           
(343,461)
Allowance for Funds Used During Const.               0                    0
Net Cash Used in Investing Activities         (621,769)            (343,461)   
              
CASH FLOWS FROM FINANCING ACTIVITIES:            
Net Borrowings (Repayments) Under
    Line-of-Credit Agreement                     (650,000)           (1,980,000)
Dividends Paid                                    (441,600)            
(289,801)
Repayment of Long-Term Debt                   (100,000)                       0
Restricted Funds used for
    Qualified Additions                                 0                     0
Common Stock Issued                                      0                    
0 
Net Cash Provided (used in)
    Financing Activities                           (1,191,600)          
(2,269,801)

NET INC. (DEC.) IN CASH
AND CASH EQUIV.                                 827,828              104,034
                                  
CASH AND CASH EQUIV. AT BEG.
 OF PERIOD                                      180,595              405,806   
              
CASH AND CASH EQUIV. AT
 END OF PERIOD                          $     1,008,423              509,840
Supplemental Disclosures of Cash Flow Information:                        
Cash paid During the Year for:                        
Interest (Net of Amt Capitalized)      $       710,336      $        387,974
Income Taxe                                      $       553,246      $       
865,063       

                                 CORNING NATURAL GAS CORPORATION
                        Consolidated Balance Sheet At June 30, 1997
                                  Form 10-QSB
                                         Unaudited              

Assets                                                     06/30/97          
09/30/96
Gas Utility Plant                           $20,132,084        $19,616,872
Non-Utility-Principally Rented
      Gas App.                           2,519,440          2,451,396
                                        22,651,524         22,068,268
Less:  Prov for Depreciation            (8,346,065)        (7,846,128)
                                                      $14,305,459       
$14,222,140
Current Assets:                                  
Cash and Equivalents                        1,008,423            180,595
Restricted Short-Term Investments                0                  0
Accounts Receivable                                  1,150,603           
789,677
Materials, Supplies and Inventories      1,441,099          2,000,129
Prepayments and Other                            766,892            873,648
     Total Current Assets                       4,367,017          3,844,049   
              
    
Non-Current Assets                          
Def. Tax Assets                                       659,953           
257,000
Def. Debits - Acctg. for Income Taxes       671,432          1,016,661
Deferred Debits                                      (251,376)        
1,217,712
     Total Non-Current Assets                  1,080,009          2,491,373    
              
                   
     Total Assets                           $19,752,485        $20,557,562     
    

Capitalization & Liabilities                     
Capitalization:                                  
   Common Stock                                 2,300,000         2,300,000
   Premium on Capital Stock - Common         653,346           653,346
   Retained Earnings                        2,687,391         2,194,382        
  
                                         5,640,737         5,147,728
Long Term Debt                               6,200,000         6,300,000
Total Capitalization                    11,840,737        11,447,728
                                       
Current Liabilities:                                  
   Short Term Notes Payable              2,075,000         2,725,000
   Accounts Payable                          1,501,465         1,146,190  
   Customer Deposits and Accrued Interest  229,118           735,398      
   Accrued Federal Income Tax                       39,249                 0    
   Other Accrued Taxes                          216,053           141,598      
  
   Current Maturities of Long Term Deb     100,000           100,000      
   Other Current and Accrued Liabilities   335,657           884,710      
     Total Current Liabilities              4,496,542         5,732,896
Accumulated Deferred FIT                         2,472,961         2,617,213
Reserves and Other Liabilities                    942,245           759,725
     Total Liab. and Capitalization   $ 19,752,485      $ 20,557,562     

See Management's Discussion & Analysis on Page 5