**UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2006

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 is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer [ ] 	Accelerated Filer [ ] 	Non-accelerated Filer [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 common stock as of the latest practicable date.

Common Stock, $5.00 par value
506,918
Class
Shares outstanding as of February 12, 2007

As used in this Form 10-Q, the terms "Company," "Corning," "Registrant," "we," "us," and "our" mean Corning Natural Gas Corporation and its consolidated subsidiaries, 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, 2006.

** 

 
 
  **PART I. **FINANCIAL INFORMATION
 
Item 1. 
Financial Statements (Unaudited) 
 
 
Item 2. 
Management's Discussion and Analysis of Financial
 
 
 
Condition and Results of Operations
 
 
Item 3. 
Quantitative and Qualitative Disclosures about Market Risk
 
 
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 Proceeds
 
 
Item 3. 
Defaults upon Senior Securities
 
 
Item 4. 
Other Information
 
 
Item 5. 
Exhibits
 
 **SIGNATURES 
    
 
**PART I

FINANCIAL INFORMATION

Item 1. 	Financial Statements.**
CORNING NATURAL GAS CORPORATION AND SUBSIDIARY 
 
Condensed Consolidated Statements of Income
 
 
 
 
Unaudited
 
 
 
 
Form 10 Q
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
December 31, 2006
 
December 31, 2005
 
 
 
 
 
 
Utility Operating Revenues
 
$6,002,068 
$7,273,639 
 
 
 
 
 
 
Cost and Expense
 
 
 
 
 
Natural Gas Purchased
 
3,402,037 
 
5,314,765 
 
Operating & Maintenance Expense
 
1,487,432
 
1,487,184 
 
Taxes other than Federal Income Taxes
 
378,954 
 
283,978 
 
Depreciation
 
154,641 
 
112,425 
 
Other Deductions, Net
 
161,196 
7,625 
Total Costs and Expenses
 
5,584,260 
7,205,977 
 
 
 
 
 
 
Utility Operating Income (Loss)
 
417,808 
 
67,662 
 
 
 
 
 
 
Other Income and (Expense)
 
 
 
 
Interest Expense
 
(385,777)
 
(363,892)
Interest Income
 
36,022 
67,254 
 
 
 
 
 
 
Net Income (Loss) from Utility Operations, Before Income Tax
 
68,053 
 
(228,976)
 
 
 
 
 
 
 
Federal Income Tax (Expense) Benefit
 
(11,709)
153,624 
 
 
 
 
 
 
Income from Non-Utility Operations, Net of Income Tax
 
0 
 
0 
 
 
 
 
 
 
Net Income (Loss) from Continued Operations
 
56,344 
 
(75,352)
 
 
 
 
 
 
Income (Loss) from Discontinued Operations, Net of Income Tax
(8,888)
(28,139)
 
 
 
 
 
 
Net Income (Loss)
 
47,456 
 
(103,491)
Other Comprehensive Income (Loss)
 
59,779 
 
(19,891)
Total Comprehensive Income (Loss)
 
$107,235 
($123,382)
 
 
 
 
 
 
Weighted average earnings per share-
 
 
 
 
 
basic & diluted:
 
 
  
 
From Continued Operations
 
$0.111 
 
($0.149)
From Discontinued Operations
 
($0.018)
($0.056)
 
 
 
$0.094 
($0.204)
 
 
 
 
 
 
Weighted average shares outstanding
 
506,918 
 **********************