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, 1996     

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.


Management's Discussion

     Operating revenues for the quarter ending December 31, 1996 were $3,242,434
or 197% more than the quarter ending September 30, 1996 and $389,889 or 8% more
than the quarter ending December 31, 1995.

     Degree days for the quarter ending December 31, 1996 were 2,362 or 4072%
more than the quarter ending September 30, 1996 and 79 or 3% less than the
quarter ending December 31, 1995.  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           12/31/96

Quarter Ending 12/31/96         2,126,330
Quarter Ending  9/30/96           876,534              (1,249,796)
Quarter Ending 12/31/95         2,200,305                  73,975

     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
$2,714,219 or 138% more than the quarter ending September 30, 1996 and $392,627
or 9% more than the quarter ending December 31, 1995.

     Net Income was $566,691 or 297% more than the quarter ended September 30,
1996 and $31,926 or 10% more than the quarter ending December 31, 1995.

     Since the Company's business is seasonal by quarters, results for the first
three 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 December 31, 1996.

     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, 1996.

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



Date      January 30, 1997         GARY K. EARLEY                
                                   Gary K. Earley, Treasurer

             

                         CORNING NATURAL GAS CORPORATION                       
                         CONSOLIDATED STATEMENT OF INCOME                      
                               UNAUDITED                                       
                               FORM 10 QSB                                     
                                                                          
                                       FOR QUARTER ENDED                       
                                       -----------------                       
                              Dec. 31, 1996  Dec. 31, 1995                     
                              -------------  -------------                     
Operating Revenues            $  4,885,193   $  4,495,304       
                                                                          
Cost and Expense                                                               
  Operating Expenses             4,367,763      3,963,028       
  Interest Expense                 231,300        246,209            
  Federal Income Tax                87,562         83,455            
  Other Deductions Net                 637          1,943            
                               -----------    -----------                 
                                                                          
Total Costs and Expenses         4,687,262      4,294,635       
                               -----------    -----------                 
Operating Income                   197,931        200,669                 
Other Income                           789         13,676                      
Corning Natural Gas Appliance Corp.:                                           
  Operating Revenues               692,621        605,519            
  Depreciation                      61,463         58,442                
  Other Operating Expenses         503,088        406,077            
  Federal Income Tax                47,028         43,657            
                                 -----------  -----------                 
Net Income of Appliance Corp.       81,042         97,343            
                                 -----------  -----------                 
                                                                          
Net Income                    $    279,762    $   311,688                      
                               ===========    ===========                 
                                                                          
Earnings Per Share            $      0.608    $     0.678                 
                                                                          
Dividends Per Share           $       0.64    $     0.315                      
                                                                          
Total Dividends Paid          $    147,200    $   144,900                 
                                                                          
                                                                          
Shares of common stock outstanding were 460,000 at December 31, 1996.          
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, 1996       DEC. 31, 1995      
CASH FLOWS FROM OPERATING ACTIVITIES:                                          
Net Income                                   279,762             311,689       
Adjustments to Reconcile Net Income
     to Net Cash                            
Provided by Operating Activities:                                             
Depreciation                                 180,279             173,066  
Allowance for Funds Used During Const.             0                   0  
Changes in Assets and Liabilities:                                        
     (Increase) Decrease in:                                                   
Accounts Receivable                       (1,181,052)         (1,697,098)
Materials, Supplies & Appliance Inventory    232,174             478,564       
Other Deferred Charges                       311,465            (284,438) 
Prepaid and Other Assets                     494,035            (406,755)
Increase (Decrease) in:                                                   
Accounts Payable                           1,266,475             362,605       
Accrued General Taxes                        (10,232)           (132,122) 
Accrued Federal Income Tax                   (51,603)            404,730  
Deferred Federal Income Tax                   57,087             103,475
Other Liabilities and Deferred Credits      (965,395)            381,450       
Net Cash Provided (used) by
     Operating Activities                    612,995           (304,834)
                                                                               
CASH FLOWS FROM INVESTING ACTIVITIES:                                          
Capital Expenditures                        (228,135)          (221,231)
Allowance for Funds Used During Const.             0                  0   
Net Cash Used in Investing Activities       (228,135)          (221,231)       
                             
CASH FLOWS FROM FINANCING ACTIVITIES:                                          
Net Borrowings (Repayments) Under
     Line-of-Credit Agreement                715,000            550,000        
Dividends Paid                              (294,400)         (144,901)        
Repayment of Long-Term Debt                 (100,000)         (100,000)
Restricted Funds used for
     Qualified Additions                           0                 0         
Common Stock Issued                                0                 0    
Net Cash Provided (used in)
     Financing Activities                    320,600            305,099         

NET INC. (DEC.) IN CASH AND CASH EQUIV.      705,460           (220,966)
                                                                               
CASH AND CASH EQUIV. AT BEG. OF PERIOD       180,595            363,871        
                                                                     
CASH AND CASH EQUIV. AT END OF PERIOD  $     886,055     $      142,905        
                                         ===========        ===========   
                                                                               
Supplemental Disclosures of Cash Flow Information:                             
Cash paid During the Year for:                                            
                                                                               
Interest (Net of Amount Capitalized)   $    296,588      $     314,561         
Income Taxes                           $          0      $      83,500          

                         CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At December 31, 1996
Form 10-QSB
                                    Unaudited                                  
                                                                          
Assets                                        12/31/96      09/30/96      
Gas Utility Plant                            $19,803,085  $19,616,872          
              
Non-Utility-Principally Rented Gas App.        2,476,294    2,451,396          
                                              22,279,379   22,068,268          
                                                                          
Less:  Accum. Provision for Depreciation      (8,009,383)  (7,846,128)
                                             $14,269,996  $14,222,140          
Current Assets:                                                                
Cash and Equivalents                             886,055      180,595          
Restricted Short-Term Investments                      0            0
Accounts Receivable                            1,970,729      789,677          
Materials, Supplies and Inventories            1,767,955    2,000,129
Prepayments and Other                            379,613      873,648          
         
     Total Current Assets                      5,004,352    3,844,049          
              
Non-Current Assets                                                             
Def. Tax Assets                                  573,022      257,000          
Def. Debits - Acctg. for Income Taxes            669,550    1,016,661
Deferred Debits                                  906,247    1,217,712     
     Total Non-Current Assets                  2,148,819    2,491,373          
                                                                          
     Total Assets                            $21,423,167  $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                           2,179,744    2,194,382          
                                               5,133,090    5,147,728          
     Long Term Debt                            6,200,000    6,300,000          
Total Capitalization                          11,333,090   11,447,728
                                                                          
Current Liabilities:                                                           
   Short Term Notes Payable                    3,440,000    2,725,000
   Accounts Payable                            2,412,665    1,146,190          
   Customer Deposits and Accrued Interest        214,428      735,398     
   Accrued Federal Income Tax                    (51,603)           0          
   Other Accrued Taxes                           131,366      141,598        
   Current Maturities of Long Term Debt          100,000      100,000          
   Other Current and Accrued Liabilities         302,602      884,710          
     Total Current Liabilities                 6,549,458    5,732,896
Accumulated Deferred FIT                       2,643,211    2,617,213
Reserves and Other Liabilities                   897,408      759,725     
                                                                          
     Total Liabilities and Capitalization   $ 21,423,167 $ 20,557,562          
                                             ===========   ==========      

See Management's Discussion & Analysis on Page 5