UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2011

[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from to 

Commission File Number 000-00643

CORNING NATURAL GAS CORPORATION

(Exact name of Registrant as specified in its charter)

**New York **16-0397420
(State of incorporation)
(I.R.S. Employer Identification No.)
**330 West William Street, Corning, New York 14830

(Address of principal executive offices) (Zip Code)
**(607) 936-3755**
(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 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 [_]
	

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes [X] No [_]
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of "large accelerated filer", "accelerated filer", "non-accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer [_] Accelerated Filer [_] Non-accelerated Filer [_] Smaller Reporting Company [X]
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [_]No [X]
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $5.00 par value
1,964,068 
Class
Shares outstanding as of February 14, 2012

Page 2. 
**PART I.**FINANCIAL
Item 1.
Financial Statements (Unaudited)
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Item 4.
Controls and Procedures**PART II**OTHER INFORMATION
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Records
Item 3.
Defaults upon Senior Securities
Item 4.
Removed and Reserved
Item 5.
Other Information
Item 6.
Exhibits**SIGNATURES
As used in this Form 10-Q, the terms "Company," "Corning," "Registrant," "we," "us," and "our" mean Corning Natural Gas Corporation and its subsidiary, taken as a whole, unless the context indicates otherwise. Except as otherwise stated, the information contained in this Form 10-Q is as of December 31, 2011.

Page 3.
**PART I

FINANCIAL INFORMATION

Item 1. 	Financial Statements.

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
Assets
31-Dec-11
31-Dec-10
30-Sep-11
(Unaudited)
(Unaudited)
Plant:
Utility property, plant and equipment
$50,004,178 
$45,428,888 
$47,490,565 
Less: accumulated depreciation
(14,793,688)
(13,305,858)
(14,361,951)
Total plant utility and non-utility, net
35,210,490 
32,123,030 
33,128,614 
Investments:
Marketable securities available-for-sale at fair value
2,379,575 
2,450,603 
2,267,268 
Current assets:
Cash and cash equivalents
166,035 
6,861 
173,245 
Customer accounts receivable, (net of allowance for
uncollectible accounts of $32,132, $35,584
and $46,080), respectively
2,477,607 
2,904,047 
1,598,241 
Gas stored underground, at average cost
2,279,703 
1,938,924 
2,832,932 
Materials and supplies inventory 
928,015 
738,234 
1,188,017 
Deferred income taxes
- 
- 
- 
Prepaid expenses
600,277 
555,933 
703,959 
Total current assets
6,451,637 
6,143,999 
6,496,394 
Deferred debits and other assets:
Regulatory assets:
Unrecovered gas costs
1,055,040 
1,253,648 
536,648 
Deferred regulatory costs
1,373,147 
989,616 
1,207,028 
Unamortized debt issuance cost (net of accumulated
amortization of $455,139, $408,660 and $443,854),
respectively
274,808 
304,932 
286,093 
Deferred income taxes
1,177,891 
101,785 
1,308,298 
Other
211,398 
210,884 
221,089 
Total deferred debits and other assets
4,092,284 
2,860,865 
3,559,156 
Total assets
$48,133,986 
$43,578,497 
$45,451,432 
See accompanying notes to consolidated financial statements.
Page 4.

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
31-Dec-11
31-Dec-10
30-Sep-11
Liabilities and capitalization:
(Unaudited)
(Unaudited)
Current liabilities:
Current portion of long-term debt
$1,333,559 
$1,120,932 
$945,063 
Demand notes payable
750,000 
750,000 
750,000 
Borrowings under lines-of-credit
6,020,507 
5,148,635 
4,178,784 
Accounts payable
2,049,786 
1,461,543 
1,882,249 
Accrued expenses
1,303,914 
976,380 
1,338,446 
Customer deposits and accrued interest
1,325,160 
1,379,835 
1,034,319 
Dividends declared
209,538 
197,811 
205,375 
Deferred income taxes
252,432 
332,643 
147,779 
Total current liabilities
13,244,896 
11,367,779 
10,482,015 
Long-term debt, less current installments
10,916,929 
10,222,119 
11,534,801 
Deferred credits and other liabilities:
Deferred compensation
1,516,841 
1,938,106 
1,849,019 
Deferred pension costs & post-retirement benefits
6,962,239 
6,115,712 
6,622,459 
Other
338,201 
68,403 
316,556 
Total deferred credits and other liabilities
8,817,281 
8,122,221 
8,788,034 
Common stockholders' equity:
Common stock (common stock $5.00 par
value per share. Authorized 3,500,000 shares;
issued and outstanding 1,823,967 shares at
December 31, 2011, 1,148,628 shares at December
31, 2010 and 1,787,769 at September 30, 2011)
9,119,835 
5,743,140 
8,938,845 
Other paid-in capital
7,644,375 
8,158,076 
7,382,167 
Retained earnings
1,220,045 
2,368,721 
1,018,766 
Accumulated other comprehensive loss
(2,829,375)
(2,403,559)
(2,693,196)
Total common stockholders' equity
15,154,880 
13,866,378 
14,646,582 
Total liabilities and capitalization
$48,133,986 
$43,578,497 
$45,451,432 
See accompanying notes to consolidated financial statements.
Page 5.

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Statements of Income
Unaudited
Quarter Ended
31-Dec-11
31-Dec-10
Utility operating revenues
$4,913,295 
$5,851,785 
Natural gas purchased
1,997,114 
2,497,048 
Gross margin
2,916,181 
3,354,737 
Cost and expense
Operating and maintenance expense
1,020,411 
1,696,494 
Taxes other than income taxes
469,236 
417,917 
Depreciation
419,751 
293,458 
Other deductions, net
266,577 
78,491 
Total costs and expenses
2,175,975 
2,486,360 
Utility operating income
740,206 
868,377 
Other income and (expense)
Interest expense
(251,359)
(208,642)
Non-utility expense
(2,820)
(2,770)
Other Income
266,920 
10,703 
Investment income
24,318 
143,958 
Rental income
12,138 
12,138 
49,197 
(44,613)
Net income from operations, before income tax
789,403 
823,764 
Income tax (expense), current 
237,432 
(42,367)
Income tax (expense), deferred
(616,031)
(268,990)
Total tax (expense)
(378,599)
(311,357)
Net income
410,804 
512,407 
Other comprehensive (loss)
(136,179)
(163,707)********************