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    December 31, 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 December 31, 1997 were $3,104,176
 or 199% more than the quarter ending September 30, 1997 and $217,165 or 4%
 less than the quarter ending December 31, 1996.

    Degree days for the quarter ending December 31, 1997 were 2,111 or 818%
 more than the quarter ending September 30, 1997 and 51 or 2% less than the
 quarter ending December 31, 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)
                                       From Quarter Ending
                        Actual MCF Deliveries              12/31/97

Quarter Ending 12/31/97           2,169,630      
Quarter Ending   9/30/97                  824,993               (1,344,637)
Quarter Ending 12/31/96           2,126,330           (     43,300)

    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
 $2,494,357 or 141% more than the quarter ending September 30, 1997 and
 $105,021 or 3% less than the quarter ending December 31, 1996.

    Net Income was $391,567 or 219% more than the quarter ended September 30,
 1997 and $67,051 or 24% less than the quarter ending December 31, 1996.

    Since the Company's business is seasonal by quarters, results for the first
 three months of fiscal year 1998 should not be used as an indication of
 what results for the full twelve months of fiscal year 1998 may be.

    In December, 1994 the New York Public Service Commission instituted a
 proceeding to address issues related to the merging competitive natural gas
 market.  This proceeding is 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 considered this a transitional step towards full unbundling of
 services with future changes made as circumstances warrant.
    
    In 1997 the PSC instituted another proceeding designed to assess the issues
 associated with the future of the natural gas industry and the role of the
 local gas utility.  The staff of the PSC has made certain proposals which,
 if instituted, will effectively separate the structure of the industry
 into four distinct segments.  Under the proposed structure, production,
 transportation, marketing and distribution will become distinct businesses.
 Gas utilities would no longer sell natural gas, they would merely provide
 the distribution facilities to get gas to the burnertip.  The staff proposal
 suggests that this change could be complete within five years.

    Such a drastic change will obviously require much effort in working out the
 details to ensure that customers are provided with the same safe, reliable
 service that has historically been provided.  This company has taken the
 position that it does not oppose this transition to a fully competitive
 market but that it must be allowed to evolve naturally.  Management
 believes that in order to minimize the potential for unintended
 consequences which could have a negative effect on the customer, arbitrary
 deadlines and regulations designed to accelerate the process need to be
 avoided.

    Additionally, under an increasingly deregulated environment there is
 opportunity for the Company to increase revenue by selling its upstream
 pipeline capacity to transportation customers.  The Company is authorized
 to retain 15% of such revenue and 85% is returned to firm customers in the
 form of lower gas costs.  Transportation customers that pay for this
 capacity are virtually assured that their supply will not be interrupted.
 Revenues derived from the resale of this capacity were $242,289 for 12
 months ended September 30, 1997 and $181,681 for the 12 months ended
 September 30, 1996.

    Late in September, 1997, the Company completed a long-term debt financing
 in the amount of $4.7 million.  These funds were obtained as a senior note
 with interest at 7.9 percent over a 20 year term.  This financing allowed
 the Company to reduce short-term debt in the amount of $3.1 million and to
 retire a 10 percent bond with a balance of $1.6 million.  Savings of over
 $200,000 were estimated on the bond retirement while the entire package
 served to strengthen the capitalization structure.

    The Company received approval for a rate increase from 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
 December 31, 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 December 31, 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 NATURAL GAS CORPORATION


Date     January 30, 1998         THOMAS K. BARRY                              
         
                             Thomas K. Barry, Chairman of  the Board,
                         President and C.E.O.



Date     January 30, 1998         GARY  K. EARLEY          
                                            Gary K. Earley, Treasurer


              CORNING NATURAL GAS CORPORATION                        
         CONSOLIDATED STATEMENT OF INCOME                       
                         UNAUDITED                                             
 
                FORM 10 QSB                                     
                                                       FOR QUARTER ENDED        
                                                   Dec. 31, 1997      Dec. 31,
1996      
                                                  ------------------
----------------------
Operating Revenues                            $4,668,028      $ 4,885,193      

Cost and Expense                                           
  Operating Expenses                                 4,262,742        4,367,763
   
  Interest Expense                           236,343          231,300   
  Income Tax                                       41,783           87,562  
  Other Deductions Net                          2,519              637       
                                                -------------    ------------- 
     
Total Costs and Expenses                   4,543,387        4,687,262   
                                                              -------------   
---------------
Operating Income                               124,641          197,931
Other Income                                       0              789        
Corning Natural Gas Appliance Corp.:                       
  Operating Revenues                                 717,677          692,621  
     
  Depreciation                                       61,166           61,463   

  Other Operating Expense                    500,630          503,088         
  Federal Income Tax                             67,811           47,028     
                                      --------------  --------------- 
Net Income of Appliance Corp.                 88,070           81,042         
                                        ------------   --------------    
Net Income                               $   212,711      $   279,762          
                                             =======        =========          
    
Earnings Per Share                       $      .462      $     0.608        
                                                      
Dividends Per Share                      $      .325      $     0.640         
                                                      
Total Dividends Paid                        $   149,500      $    147,200  
Shares of common stock outstanding were 460,000 at December 31, 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                                         
                                                                               
                        
                          DEC. 31, 1997    DEC. 31, 1996
CASH FLOWS FROM OPERATING ACTIVITIES:                                          
    
Net Income                                                  $           
212,710      $   279,762
    Adjustments to Reconcile Net Income
    to Net Cash                             
Provided by Operating Activities: 
Depreciation                                                              
184,567            180,279
Allowance for Funds Used During Const.                            0            
   0     
    Changes in Assets and Liabilities:                               
    (Increase) Decrease in:                                          
Accounts Receivable                                                (1,418,827) 
     (1,181,052)
Materials, Supplies & Appliance Inventory      (  664,184)          232,174
Other Deferred Charges                                          25,221         
 311,465
Prepaid and Other Assets                                      490,069          
494,035
Increase (Decrease) in:                          
Accounts Payable                                          2,181,991        
1,266,475
Accrued General Taxes                              (  104,170)      (    10,232)
Accrued Federal Income Tax                               (  141,813)      (   
51,603)
Deferred Federal Income Tax                        148,087            57,087
Other Liabilities and Deferred Credits        (   575,785)      (   965,395)
Net Cash Provided (used) by
    Operating Activities                                             337,866   
       612,995
                                                      
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Capital Expenditures                                    (    269,046)      (  
228,135)
Allowance for Funds Used During Const.                  0                 0
Net Cash Used in Investing Activities        (    269,046)     (    228,135)   
         
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Net Borrowings (Repayments) Under
    Line-of-Credit Agreement                             275,000          
715,000
Dividends Paid                                                   (    149,500) 
  (     294,400)
Repayment of Long-Term Debt                             0     (     100,000)
Restricted Funds used for
    Qualified Additions                                            0           
     0
Common Stock Issued                                                 0          
      0 
Net Cash Provided (used in)
    Financing Activities                                         125,500       
   320,600

NET INC. (DEC.) IN CASH AND CASH EQUIV.           194,320           705,460
                                                      
CASH AND CASH EQUIV. AT BEG. OF PERIOD            904,651           180,595    
         
CASH AND CASH EQUIV. AT END OF PERIOD     $     1,098,971    $      886,055
                                                 ========         =========
Supplemental Disclosures of Cash Flow Information:                        
Cash paid During the Year for:                                       
Interest (Net of Amount Capitalized)      $       238,478    $      296,588
Income Taxes                                       $             0    $        
   0

CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At December 31, 1997
Form 10-QSB                              Unaudited                        
                                                                               
    
Assets                                                               12/30/97  
 
     09/30/97
Gas Utility Plant                                                 $20,634,140  
    $20,378,449    
Non-Utility-Principally Rented Gas App.        2,536,465        2,533,498
                                                                        
23,170,605       22,911,947       
Less:  Accum. Provision for Depreciation      (8,652,625)      (8,478,446)
                                                                     
$14,517,980      $14,433,501      
Current Assets:                                                 
Cash and Equivalents                                          1,098,971        
 904,651      
Restricted Short-Term Investments                          0                  0
Accounts Receivable                                            2,414,042       
  995,215
Materials, Supplies and Inventories            2,653,582        1,989,398
Prepayments and Other                                          556,613       
1,046,682     
     Total Current Assets                                 6,723,208       
4,935,946                         
Non-Current Assets                                         
Def. Tax Assets                                                         401,242
          62,000   
Def. Debits - Acctg. for Income Taxes             864,872        1,016,661
Deferred Debits                                                       1,222,177
       1,247,398   
     Total Non-Current Assets                                  2,488,291       
2,326,059                              
     Total Assets                                             $23,729,479     
$21,695,506
                                                 ===========     ============   
Capitalization & Liabilities                                    
Capitalization:                                                 
   Common Stock                                               2,300,000       
2,300,000     
   Premium on Capital Stock - Common               653,346          653,346     
   Retained Earnings                                  2,319,301        2,256,091
                                               5,272,647        5,209,437
Long Term Debt                                                 9,400,000       
9,400,000     
Total Capitalization                                          14,678,647      
14,609,437
                                                      
Current Liabilities:                                                 
   Short Term Notes Payable                             1,050,000        
775,000
   Accounts Payable                                            4,012,331      
1,830,340          
   Customer Deposits and Accrued Interest        232,354         673,114  
   Accrued Federal Income Tax                               (141,813)          
   0          
   Other Accrued Taxes                                          8,197        
112,367
   Current Maturities of Long Term Debt                    0               0
   Other Current and Accrued Liabilities         300,034          624,790      
    
     Total Current Liabilities                        5,461,103       
4,015,611
Accumulated Deferred FIT                                   2,780,506       
2,444,966
Reserves and Other Liabilities                          815,223          625,492
     Total Liab. and Capitalization         $ 23,729,479     $ 21,695,506
                                                                          ======
====       ==========

See Management's Discussion & Analysis on Page 5