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        March 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
 incorporation or organization)          Identification No.)

330 W. William St., P.O. 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.

<PAGE>Management's Discussion

   Operating revenues for the quarter ending March 31, 1997 were $5,987,344 or
364%
more than the quarter ending September 30, 1996 and $1,339,220 or 15% less
than the
quarter ending March 31, 1996.

   Degree days for the quarter ending March 31, 1997 were 3,032 or 5228% more
than
the quarter ending September 30, 1996 and 440 or 12% less than the quarter
ending
March 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           03/31/97

Quarter Ending 03/31/97         3,455,554
Quarter Ending  9/30/96           876,534              (2,579,020)
Quarter Ending 03/31/96         3,611,230                 155,676

   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
$5,016,885
or 254% more than the quarter ending September 30, 1996 and $1,401,942 or 17%
less
than the quarter ending March 31, 1996.

   Net Income was $976,755 more than the quarter ended September 30, 1996 and
$30,952  less than the quarter ending March 31, 1996.

   Since the Company's business is seasonal by quarters, results for the first
six
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
nearly new, all plastic, system was already connected and serving 320
customers with
a potential to add 200 more in the near future.  On a per customer basis, this
represents a very low investment.  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 a 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 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 March 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 March 31, 1997.
<PAGE>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 
   (Registrant)



Date         April 30, 1997      THOMAS K. BARRY               
   Thomas K. Barry, Chairman of                   
                                 the Board, President and C.E.O.



 Date         April 30, 1997       GARY K. EARLEY                
   Gary K. Earley, Treasurer
<PAGE>                      CORNING NATURAL GAS CORPORATION
        CONSOLIDATED STATEMENT OF INCOME
            UNAUDITED
           FORM 10 QSB
  
  
              FOR QUARTER ENDED       SIX MONTHS ENDED
  
   March 31, 1997  March 31, 1996  March 31, 1997  March 31, 1996
   ---------------------- ----------------------   ---------------------  
---------------------
   Operating Revenues                $7,630,103        $ 8,969,323 
$12,515,296            $13,464,627
  
             Cost and Expense
    Operating Expenses                  6,445,749           7,745,754  
10,813,512              11,708,782
     Interest Expense                     219,375              219,988        
405,675                   466,197
   Federal Income Tax                     324,227             
424,495               411,789                   507,950
   Other Deductions Net                            577                 
1,633                    1,214                       3,576
                     -------------     ------------------       
----------------               ---------------
  
 Total Costs and Expenses                  6,989,928         
8,391,870           11,677,190             12,686,505
      -------------           -------------           
---------------              --------------
   Operating Income                     640,175       577,453                
838,106                  778,122
   Other Income                       100              
89,259                         888                  102,935
     Corning Natural Gas Appliance Corp.:   
  Operating Revenues                                 562,171            
541,005              1,254,792               1,146,524
   Depreciation                                     60,754             
58,251                  122,217                  116,693
  Other Operating Expense                         426,734            
383,771                 929,822                  789,848
    Federal Income Tax                       25,132       
44,917                    72,160                    88,574
                       ------------     ---------------           
---------------                --------------
 Net Income of Appliance Corp.                     49,551         
54,066                 130,593                  151,409
                                                   -----------      
--------------             ---------------               --------------
  
 Net Income                                         $       689,826    $     
720,778          $     969,587             $ 1,032,466
                         ==========      =========         
=========             ==========
  
 Earnings Per Share                         $               1.50     $        
1.567          $         2.108              $         2.244
  
  Dividends Per Share                         $                .32    
$           .315           $             .64              $             .63
  
 Total Dividends Paid                         $         147,200     $    
144,900          $     294,400               $    289,801
  
             
   Shares of common stock outstanding were 460,000 at March 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.
  
  
<PAGE>         CORNING NATURAL GAS CORPORATION
  
         CONSOLIDATED STATEMENT OF CASH FLOWS
           FORM 10-QSB - UNAUDITED
  
     MARCH 31, 1997     MARCH 31, 1996
   CASH FLOWS FROM OPERATING ACTIVITIES:                               
         Net Income      $           969,587        $    720,778
Adjustments to Reconcile Net Income
         to Net Cash
         Provided by Operating Activities:   
         Depreciation 360,049 179,535
     Allowance for Funds Used During Const.                     0            0
            Changes in Assets and Liabilities:
              (Increase) Decrease in:
     Accounts Receivable          (1,361,094)        (1,561,916)
  Materials, Supplies & Appliance Inventory                                    
             724,573              674,721
    Other Deferred Charges                            984,555          
1,795,752
   Prepaid and Other Assets                                         
306,636                92,325
          Increase (Decrease) in:
   Accounts Payable                                                       
270,285            (288,515)
   Accrued General Taxes                                                  
53,765              195,310
     Accrued Federal Income Tax                                         
312,023 316,281
  Deferred Federal Income Tax                                          
(25,682)           (174,492)
 Other Liabilities and Deferred
Credits                                                       
(693,603)            ( 64,198)
Net Cash Provided (used) by
       Operating Activities                         1,901,094          
1,885,581
  
  
         CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital Expenditures                                                      
(462,461)           (157,934)
 Allowance for Funds Used During
Const.                                                              
0                         0
   Net Cash Used in Investing
Activities                                                        
(462,261)           (157,934)
  
         CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) Under
     Line-of-Credit Agreement                                         
125,000            1,515,000
     Dividends Paid                           (294,400)            (144,900)
   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                                        
(519,400)          (1,659,900)

NET INC. (DEC.) IN CASH AND CASH
EQUIV.                                         919,433                 67,747
  
  
   CASH AND CASH EQUIV. AT BEG. OF PERIOD                                     
180,595               405,806
  
   CASH AND CASH EQUIV. AT END OF PERIOD                              $   
1,100,028     $        473,553
               ========          =========
  
  
      Supplemental Disclosures of Cash Flow Information:
         Cash paid During the Year for:
  
  
Interest (Net of Amount
Capitalized)                                                   $     
440,027       $        144,580
     Income Taxes                                                $      
86,000        $        253,126
<PAGE>                     CORNING NATURAL GAS CORPORATION
            Consolidated Balance Sheet At March 31, 1997
                             Form 10-QSB
                Unaudited
    
    
    
          Assets     03/31/97     09/30/96
         Gas Utility Plant $19,993,380$19,616,872
    
 Non-Utility-Principally Rented Gas App.                         
2,512,087           2,451,396
          22,445,467         22,068,268
    
    
 Less:  Accum. Provision for Depreciation                               
(8,178,131)        (7,846,128)
        $14,267,336       $14,222,140
           Current Assets:
    
     Cash and Equivalents                   1,100,028              180,595
   Restricted Short-Term Investments                                
0                    0
    Accounts Receivable                   2,150,771               789,677
Materials, Supplies and Inventories                                           
1,275,556            2,000,129
      Prepayments and Other                      567,012               873,648
       
         Total Current Assets                                
5,093,367            3,844,049
    
           Non-Current Assets
    
       Def. Tax Assets         588,868               257,000
    
  Def. Debits - Acctg. for Income Taxes                      
670,466           1 ,016,661
       Deferred Debits         233,157            1,217,712
           Total Non-Current Assets      1,492,491            2,491,373
    
    
           Total Assets                $20,853,194        $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                                                
2,869,569            2,194,382
                          5,822,915            5,147,728
     Long Term Debt                                   6,200,000           
6,300,000
    
     Total Capitalization      12,022,915         11,447,728
    
    
           Current Liabilities:
    
      Short Term Notes Payable                      2,600,000          
2,725,000
         Accounts Payable                      1,416,475           1,146,190
    Customer Deposits and Accrued
Interest                                       220,422              735,398
        Accrued Federal Income Tax                         
312,023                         0
         Other Accrued Taxes                          195,363             
141,598             
     Current Maturities of Long Term
Debt                                        100,000              100,000
     Other Current and Accrued
Liabilities                                             418,548             
884,710
       Total Current Liabilities                                    
5,262,831           5,732,896
    Accumulated Deferred FIT         2,577,204           2,617,213
  Reserves and Other Liabilities                                       
990,244              759,725
            
    
       Total Liab. and
Capitalization                                                $
20,853,194      $ 20,557,562            
                                                                               
                                  ==========       ==========

       See Management's Discussion & Analysis on Page 5