U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB



QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND

EXCHANGE ACT OF 1934

For Quarter Ended June 30, 2001

|0-643                                                                                     Corning Natural Gas Corp
Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|New York						            16-0397420
(State or other jurisdiction of                                                (IRS Employer ID No)
|----------------------------------------------------------------------------------------------------------------------------------------

incorporation or organization)



330 W William Street, PO Box 58, Corning, New York 14830

(Address of principal executive offices)



607-936-3755

(Registrant's telephone number, including area code)



Indicate by checkmark whether the registrant (1) filed all reports required to be filed by Section 13 Or 15(d) of the Exchange Act of 1934 during the past 12 months and (2) has been subject to such filing requirements for at least the past 90 days. Yes ___X___ No ______.

Number of shares of Common Stock outstanding at the end of the quarter-460,000.

There is only one class of Common Stock and no Preference Stock outstanding.

CORNING NATURAL GAS CORPORATIONFORM 10-QSB FOR THE QUARTER ENDED JUNE 30, 2001

Management's Discussion & Analysis

As the Company's business is seasonal, the interim results should not
 be used as an indication of what results of the fiscal year 2001 may be.

Consolidated revenue of $5,579,400 for the quarter increased $275,700
from the same quarter last year due primarily to an increase in Gas
Company revenue. Gas Company revenue increased $615,600 due primarily
to an increase in the cost of gas at the wellhead, which is billed to
customers. Increases and decreases in gas costs are passed through to
customers, and are profit-neutral to the company.

Consolidated net loss for the quarter was $121,600 compared to a
loss of $65,200 in the same quarter the previous year. Earnings from
gas operations decreased $24,700 primarily as a result of a one time
billing adjustment in April 2000. The Appliance Company earnings of
$19,400 compared to $37,900 in the same quarter last year as a result
of slowed sales. Corning Realty experienced a loss of $32,600 for the
quarter for the same reason, slowed sales. The Tax Center International
and The Foodmart Plaza contributed an additional $59,400 to consolidated
earnings for the quarter. Corning Mortgage the newest business segment,
experienced a loss of $4,900 for the quarter, having just received its
license approval from the New York State banking authority in November
2000.

The Company finances its capital additions as well as gas purchased
 through a combination of internally generated funds and short-term
borrowing. The Company has $7,500,000 available through lines of credit
at local banks, the terms of which are disclosed in the Companys latest
annual report on form 10-KSB. It is expected that current capital resources
will continue to be sufficient for planned operations.

Segment Overview:

The following table reflects the year to date results of the segments
consistent with the Company's internal financial reporting process. The
following results are used in part, by management, both in evaluating the
performance of, and in allocating resources to, each of these segments.

|                               | Gas     |           | Appliance   |         | Tax    |           | Corning |           | Foodmart |          | Corning    | 
|------------------------------ | ------- | --------- | ----------- | ------- | ------ | --------- | ------- | --------- | -------- | -------- | ---------- | 
|                               | Company |           | Corporation |         | Center |           | Realty  |           | Plaza    |          | Mortgage   | 
|                               |         |           |             |         |        |           |         |           |          |          |           
|Revenue:                       |         |           |             |         |        |           |         |           |          |          |           
|2001: 22,373,290               |         | 1,732,069 |             | 363,349 |        | 3,005,736 |         | 180,533   |          | ---      | 27,654,977
|2000: 14,668,666               |         | 1,864,939 |             | 262,920 |        | 3,294,560 |         | 210,149   |          | ---      | 20,301,234
|                               |         |           |             |         |        |           |         |           |          |          |           
|Net income (loss): (1)         |         |           |             |         |        |           |         |           |          |          |           
|2001: 547,065                  |         | 181,160   |             | 100,380 |        | (128,081) |         | 1,648     |          | (19,475) | 682,695   
|2000: 435,210                  |         | 184,626   |             | 54,865  |        | (57,795)  |         | 250,245   |          | ---      | 641,930   
|                               |         |           |             |         |        |           |         |           |          |          |           
|Interest Income:               |         |           |             |         |        |           |         |           |          |          |           
|2001: 41,535                   |         | 78,454    |             | 5,867   |        | ---       |         | ---       |          | ---      | 125,856   
|2000: 1,549                    |         | 67,565    |             | 553     |        | ---       |         | ---       |          | ---      | 69,667    
|                               |         |           |             |         |        |           |         |           |          |          |           
|Interest Expense:              |         |           |             |         |        |           |         |           |          |          |           
|2001: 714,616                  |         | 5,610     |             | 757     |        | 120,249   |         | 66,540    |          | ---      | 907,772   
|2000: 816,167                  |         | 10,269    |             | 1,495   |        | 108,083   |         | 67,944    |          | ---      | 1,003,958 
|                               |         |           |             |         |        |           |         |           |          |          |           
|Total assets: (2)              |         |           |             |         |        |           |         |           |          |          |           
|2001: 25,736,947               |         | 3,264,555 |             | 302,569 |        | 1,918,984 |         | 1,092,223 |          | 186,869  | 32,347,537
|2000: 21,034,895               |         | 3,262,784 |             | 227,440 |        | 2,051,620 |         | 1,212,094 |          | ---      | 27,788,833
|                               |         |           |             |         |        |           |         |           |          |         
|Depreciation and amortization: |         |           |             |         |        |           |         |           |          |         
|2000: 365,225                  |         | 173,527   |             | 9,569   |        | 135,338   |         | 24,550    |          | ---      | 708,209   
|2000: 355,229                  |         | 179,098   |             | 8,523   |        | 127,061   |         | 23,678    |          | ---      | 693,278   
|                               |         |           |             |         |        |           |         |           |          |          |           
|Income tax expense:            |         |           |             |         |        |           |         |           |          |          |           
|2001: 359,478                  |         | 97,937    |             | 51,711  |        | (65,966)  |         | (2,485)   |          | (9,330)  | 431,345   
|2002: 285,969                  |         | 104,983   |             | 20,734  |        | (29,940)  |         | (2,848)   |          | ---      | 378,898   
|                               |         |           |             |         |        |           |         |           |          |          |           



(1) Before elimination of intercompany interest.

(2) Total assets include property, plant and equipment, accounts
receivable, inventories, cash and other amounts specifically related to
each identified segment.

Interest income and expense are displayed in the segment in which
they have been earned or incurred. Segment interest expense other than
the Gas Company is included within unregulated expenses in the consolidated
statements of income.

In June 1998, June 1999 and June 2000 the Finacial Accounting Standards
 Board ("FASB") issued Statements of Financial Accounting Standards
("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging
Activities", SFAS No. 137, "Accounting for Derivative Instruments and
Hedging Activities- Deferral of the Effective Date of FASB Statement
No. 133" and SFAS No. 138, "Accounting for Certain Derivative Instruments
and Certain Hedging Activities, an Amendment of FASB Statement No. 133".
These Statements establish accounting and reporting standards requiring
that every derivative instrument (including certain derivative instruments
embedded in other contracts) be recorded in the balance sheet as either an
asset or liability measured at its fair value. These statements require
that changes in the derivative's fair value be recognized currently in
earnings unless specific hedge accounting criteria are met. Special
accounting for qualifying hedges allows a derivate's gains and losses
to offset related results on the hedged item in the statement of
operations, and requires that the Company must formally document,
designate and assess the effectiveness of transactions that receive
hedge accounting. During the first quarter of 2001, the Company adopted
Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting
for Derivative Instruments and Hedging Activities. The Company has not
identified any derivatives that meet the criteria for a derivative
instrument and does not participate in any hedging activities. As a
result, management of the Company concluded that there was no material
effect on the Companys consolidated financial position, results of
operations or cash flows resulting from the adoption of SFAS No. 133
during the nine months June 30, 2001.

The Financial Accounting Standards Board has approved for issuance
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations" and No. 142 "Goodwill and Other Intangible Assets". Both
statements are scheduled to be published in July 2001. SFAS No. 141 will
require that the purchase method of accounting be used for all business
combinations initiated after June 30, 2001 and that the use of the
pooling-of-interest method is no longer allowed. SFAS No. 142 requires
that upon adoption, amortization of goodwill will cease and instead,
the carrying value of goodwill will be evaluated for impairment on
an annual basis. Identifiable intangible assets will continue to be
amortized over their useful lives and reviewed for impairment in
accordance with SFAS No. 121 "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of". SFAS No. 142 is
effective for fiscal years beginning after December 15, 2001; however,
the Company may elect early adoption of this statement on October 1, 2001,
the beginning of its 2002 fiscal year. The Company is evaluating the
impact of the adoption of these standards and has not yet determined the
effect of adoption on its financial position and results of Operations.

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 accounting
principals generally accepted in the United States of America 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 consolidated financial statements contained herein should
be read in conjunction with the consolidated financial statements and
notes thereto included in the Company's latest annual report on Form
10-KSB. These unaudited interim financial statements 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 quarter ending June 30, 2001.









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.

Date:

August 14, 2001 /S/ THOMAS K. BARRY

Thomas K. Barry, Chairman of the Board,

President and CEO.

Date:

August 14, 2001 /S/GARY K. EARLEY

Gary K. Earley, Treasurer







|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY         |  |          
|------------------------------------------------------ |  | ---------
|Consolidated Balance Sheets                            |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|Assets                                                 |  |          
|Utility plant:                                         |  |          
|Utility property, plant and equipment:                 |  |          
|Non-utility - property, plant and equipment            |  | 4,230,606
|Less accumulated depreciation                          |  |          
|Total plant utility and non-utility net                |  |          
|                                                       |  |          
|Investments:                                           |  |          
|Marketable securities available for sale at fair value |  | 1,274,120
|Investment in joint venture                            |  |          
|Total investments                                      |  |          
|                                                       |  |          
|Current assets:                                        |  |          
|Cash and cash equivalents                              |  |          
|Customer A/R, less allowance for uncollectibles        |  | 1,964,606
|Gas stored underground, at average cost                |  | 484,476  
|Gas and appliance inventories                          |  |          
|Prepaid expenses                                       |  |          
|Total current assets                                   |  |          
|                                                       |  |          
|Deferred debits and other assets:                      |  |          
|Regulatory assets:                                     |  |          
|Income taxes recoverable through rates                 |  |          
|Prepaid pension costs                                  |  |          
|Unrecovered gas costs                                  |  |          
|Goodwill net of amortization                           |  |          
|Unamortized debt issuance cost                         |  |          
|Other                                                  |  |          
|Total deferred debits and other assets                 |  |          
|                                                       |  |          
|Total assets                                           |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY         |  |          
|Consolidated Balance Sheets                            |  |          
|                                                       |  |          
|                                                       |  |          
|                                                       |  |          
|Capitalization and liabilities:                        |  |          
|                                                       |  |          
|Common stockholders' equity:                           |  |          
|Common stock(common stock $5.00 par                    |  |          
|value per share. Authorized 1,000,000                  |  |          
|shares;issued and outstanding 460,000 shares)          |  |          
|Other paid-in capital                                  |  |          
|Retained earnings                                      |  |          
|Accumulated other comprehensive income-                |  |          
|net unrealized gain on securities available            |  |          
|for sale (net of income taxes)                         |  |          
|Total common stockholders' equity                      |  |          
|                                                       |  |          
|Long-term debt, less current installments              |  |          
|                                                       |  |          
|Current liabilities:                                   |  |          
|Current portion of long term debt                      |  |          
|Borrowings under lines-of-credit                       |  |          
|Accounts payable                                       |  |          
|Accrued expenses                                       |  |          
|Customer deposits and accrued interest                 |  |          
|Deferred income taxes                                  |  |          
|Accrued general taxes                                  |  |          
|Supplier refunds                                       |  |          
|Prepaid income taxes                                   |  |          
|Dividends payable                                      |  |          
|Total current liabilities                              |  |          
|                                                       |  |          
|Deferred credits and other liabilities:                |  |          
|Deferred income taxes                                  |  |          
|Deferred compensation and post-retirement              |  |          
|benefits                                               |  |          
|Other                                                  |  |          
|Total deferred credits and other liabilities           |  |          
|                                                       |  |          
|Total capitalization and liabilities                   |  |          
|                                                       |  |          
|                                                       |  |          

|Corning Natural Gas Corporation                                                   |                                   |           |                       |   |           |                       |                   |            |                      
|--------------------------------------------------------------------------------- | --------------------------------- | --------- | --------------------- | - | --------- | --------------------- | ----------------- | ---------- | ---------------------
|Condensed Consolidated Statements of Income                                      
|Unaudited                                                                         |                                   |           |                       |   |           |                       |                   |            |                      
|Form 10 QSB                                                                       |                                   |           | Quarter Ended         |   |           |                       | Nine Months Ended
|                                                                                  |                                   |           | June 30, 2001         |   |           | June 30, 2000         |                   |            | June 30, 2001        
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|Utility Operating Revenues                                                        | $                                 | 3,953,065 |                       | $ | 3,350,548 |                       | $                 | 22,373,290 |                      
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|Cost and Expense                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|                                                                                  | Operating Expenses                |           | 3,963,692             |   |           | 3,267,838             |                   |            | 20,753,402           
|                                                                                  | Interest Expense                  |           | 230,251               |   |           | 264,382               |                   |            | 714,616              
|                                                                                  | Income Tax                        |           | (68,668)              |   |           | (41,793)              |                   |            | 359,478              
|                                                                                  | Other Deductions, Net             |           | 2,792                 |   |           | 5,830                 |                   |            | 24,764               
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|Total Costs and Expenses                                                          |                                   | 4,128,067 |                       |   | 3,496,257 |                       |                   | 21,852,260 |                      
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Utility Operating Income (Loss)                                                   |                                   | (175,002) |                       |   | (145,709) |                       |                   | 521,030    |                      
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|Other Income                                                                      |                                   | 12,027    |                       |   | 7,390     |                       |                   | 26,118     |                      
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Corning Natural Gas Appliance Corp.                                               |                                   |           |                       |   |           |                       |                   |            |                      
|                                                                                  | Operating Revenues                |           | 459,080               |   |           | 549,325               |                   |            | 1,810,522            
|                                                                                  | Depreciation                      |           | 56,753                |   |           | 57,616                |                   |            | 173,529              
|                                                                                  | Operating Expense                 |           | 372,104               |   |           | 428,810               |                   |            | 1,357,896            
|                                                                                  | Federal Income Tax                |           | 10,786                |   |           | 25,037                |                   |            | 97,937               
|                                                                                  | Equity in Earnings of Assoc. Cos. | 21,857    |                       |   | 35,270    |                       |                   | (45,614)   |                      
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|                                                                                  | Net Income of Appliance Corp.     | 41,294    |                       |   | 73,132    |                       |                   | 135,546    |                      
|                                                                                  |                                   |           | --------------------- |   |           | --------------------- |                   |            | ---------------------
|                                                                                  | Net Income (Loss)                 | $         | (121,681)             |   | $         | (65,187)              |                   | $          | 682,694              
|                                                                                  |                                   |           | ============          |   |           | ============          |                   |            | ============         
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Earnings (Loss) Per Share-basic & diluted                                         | $                                 | (0.265)   |                       | $ | (0.142)   |                       | $                 | 1.484      |                      
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Dividends Per Share                                                               | $                                 | 0.650     |                       | $ | 0.650     |                       | $                 | 0.975      |                      
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Dividends Declared                                                                | $                                 | 299,000   |                       | $ | 299,000   |                       | $                 | 448,500    |                      
|                                                                                  |                                   |           |                       |   |           |                       |                   |            |                      
|Shares of common stock outstanding were 460,000 at June 30, 2001                 
|Earnings per share=Net Income as shown above divided by 460,000 shares.          
|Dividends per share=Dividends declared divided by shares outstanding at the time.







|CORNING NATURAL GAS CORPORATION               |          |                       |               |        |                       |  |                   |                     |              
|--------------------------------------------- | -------- | --------------------- | ------------- | ------ | --------------------- |  | ----------------- | ------------------- | -------------
|Statement of Comprehensive Income(Loss)       |          |                       |               |        |                       |  |                   |                     |              
|Unaudited                                     |          |                       |               |        |                       |  |                   |                     |              
|Form 10 QSB                                   |          |                       | Quarter Ended |        |                       |  | Nine Months Ended
|                                              |          |                       |               |        |                       |  |                   |                     |              
|                                              |          | June 30,2001          |               |        | June 30, 2000         |  | June 30,2001      |                     | June 30, 2000
|                                              |          | --------------------- |               |        | --------------------  |  |                   | ------------------- |              
|Net Income(loss)                              | $        | (121,680)             |               | $      | (65,187)              |  | $                 | 682,695             |              
|                                              |          |                       |               |        |                       |  |                   |                     |              
|Other comprehensive income(loss), net of tax: |          |                       |               |        |                       |  |                   |                     |              
|Unrealized gains(losses) on securities:       | (11,732) |                       |               | 14,769 |                       |  | 99,960            |                     |              
|                                              |          | --------------------- |               |        | --------------------- |  |                   | ------------------- |              
|Comprehensive Income (loss)                   | $        | (133,412)             |               | $      | (50,418)              |  | $                 | 782,655             |              
|                                              |          | =============         |               |        | =============         |  |                   | ============        |              
|                                              |          |                       |               |        |                       |  |                   |                     |              







|CORNING NATURAL GAS CORPORATION AND SUBSIDIARY     |                                                          |                                              |                                                  |             |            
|-------------------------------------------------- | -------------------------------------------------------- | -------------------------------------------- | ------------------------------------------------ | ----------- | -----------
|Consolidated Statements of Cash Flows              |                                                          |                                              |                                                  |             |            
|For the Nine Months Ended June 30, 2001 & 2000     |                                                          |                                              |                                                  |             |            
|Unaudited                                          |                                                          |                                              |                                                  |             |            
|Form 10 QSB                                        |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              |                                                  |             |            
|Cash flows from operating activities:              |                                                          |                                              |                                                  |             |            
|                                                   | Net income                                               | $                                            | 682,695                                          |             | $          
|                                                   | Adjustments to reconcile net income to net cash(used in) |                                              |                                                  |             |            
|                                                   |                                                          | provided by operating activities:            |                                                  |             |            
|                                                   |                                                          |                                              | Depreciation and amortization                    |             | 708,209    
|                                                   |                                                          |                                              | Loss(gain) on sale of marketable securities      |             | 59,974     
|                                                   |                                                          |                                              | Deferred income taxes                            |             | 131,516    
|                                                   |                                                          |                                              | Loss on joint venture                            |             | (9,415)    
|Changes in assets and liabilities:                 |                                                          |                                              |                                                  |             |            
|                                                   | (Increase) decrease in:                                  |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Accounts receivable                              |             | (653,917)  
|                                                   |                                                          |                                              | Gas stored underground                           |             | 1,709,960  
|                                                   |                                                          |                                              | Gas and appliance inventories                    |             | 1,095      
|                                                   |                                                          |                                              | Prepaid expenses                                 |             | (105,989)  
|                                                   |                                                          |                                              | Unrecovered gas costs                            |             | 886,931    
|                                                   |                                                          |                                              | Prepaid income taxes                             |             | 509,229    
|                                                   |                                                          |                                              | Deferred income tax asset                        |             | 0          
|                                                   |                                                          |                                              | Deferred charges-pension and other               |             | (158,455)  
|                                                   |                                                          |                                              | Other assets                                     |             | (279,133)  
|                                                   | Increase(decrease) in:                                   |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Accounts payable                                 |             | (61,299)   
|                                                   |                                                          |                                              | Customer deposit liability                       |             | (264,106)  
|                                                   |                                                          |                                              | Accrued general taxes                            |             | 263,456    
|                                                   |                                                          |                                              | Supplier refunds due customers                   |             | (215,868)  
|                                                   |                                                          |                                              | Other liabilities and deferred credits           |             | (65)       
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Net cash provided by operating activities        |             | 3,204,818  
|                                                   |                                                          |                                              |                                                  |             |            
|Cash flows from investing activities:              |                                                          |                                              |                                                  |             |            
|                                                   |                                                          | Capital expenditures, net of minor disposals |                                                  | (783,803)   |            
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Net cash used in investing activities            |             | (783,803)  
|                                                   |                                                          |                                              |                                                  |             |            
|Cash flows from financing activities:              |                                                          |                                              |                                                  |             |            
|                                                   |                                                          | Net borrowings under lines-of-credit         |                                                  | (1,600,667) |            
|                                                   |                                                          | Dividends paid                               |                                                  | (448,500)   |            
|                                                   |                                                          | Repayment of long-term debt                  |                                                  | (305,015)   |            
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Net cash provided by financing activities        |             | (2,354,182)
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Net (decrease) increase in cash                  |             | (53,269)   
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Cash and cash equivalents at beginning of period |             | 257,035    
|                                                   |                                                          |                                              |                                                  |             |            
|                                                   |                                                          |                                              | Cash and cash equivalents at end of period       | $           | 203,765    
|                                                   |                                                          |                                              |                                                  |             |            
|Supplemental disclosures of cash flow information: |                                                          |                                              |                                                  |             |            
|                                                   | Cash paid during the period for:                         |                                              |                                                  |             |            
|                                                   |                                                          | Interest                                     | $                                                | 754,072     |            
|                                                   |                                                          | Income taxes                                 |                                                  | 153,618     |            
|                                                   |                                                          |                                              |                                                  |             |