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, 1998           

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 Identification
incorporation or organization)           No.)

330 W. William Street, PO 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 March 31, 1998 were $7,173,161,
 an increase of $5,609,309 or 358% more than the quarter ending September
 30, 1997 and $456,942 or 6% less than the quarter ending March 31, 1997.

    Degree days for the quarter ending March 31, 1998 were 2,754, an increase
 of 2,495 or 963% more than the quarter ending September 30, 1997 and 336 or
 11% less than the quarter ending March 31, 1997.  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              03/31/98
Quarter Ending  3/31/98                     3,069,063      
Quarter Ending   9/30/97                      824,993           (2,244,070)
Quarter Ending  3/31/97                     3,455,554             (386,491)

    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
 $6,047,059, an increase of $4,278,674 or 242% more than the quarter ending
 September 30, 1997 and $398,690 or 6% less than the quarter ending
 March 31, 1997.

    Net Income was $604,959, an increase of $783,817 or 436% more than the
 quarter ended September 30, 1997 and $84,867 or 12% less than the quarter
 ending March 31, 1997.

    Since the Company's business is seasonal by quarters, results for the first
 six months of fiscal year 1998 should not be used as an indication of what
 results for the full twelve months of fiscal year 1998 may be.

    Late in September, 1997, the Company completed a long-term debt financing
 in the amount of $4.7 million.  These funds were obtained as a senior note
 with interest at 7.9 percent over a 20 year term.  This financing allowed
 the Company to reduce short-term debt in the amount of $3.1 million and to
 retire a 10 percent bond with a balance of $1.6 million.  Savings of over
 $200,000 were estimated on the bond retirement while the entire package
 served to strengthen the capitalization structure.

    In April 1998 the Company's Appliance subsidiary completed the purchase of
 three local existing businesses.  A shopping plaza in South Corning was
 purchased which consists of eight businesses housed in 52,000 square feet
 of rentable space with a major grocery store as the anchor.  Also purchased
 was a real estate organization and a tax and financial services company.
 The real estate firm is a franchise of The Prudential Marketplace Realty
 and has twenty three agents operating out of offices in both the Corning and
 Elmira, New York market.  Tax Center International provides tax preparation
 accounting, and payroll services and currently serves over six hundred
 clients.  These purchases are part of the Company's plan to aggressively
 explore new opportunities in non-traditional areas.
    
    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, 1998.

    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, 1998.   

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


Date     May 11, 1998             THOMAS K. BARRY                              
              
                             Thomas K. Barry, Chairman of
                                                           the Board, President
and C.E.O.



Date     May 11, 1998             GARY  K. EARLEY          
                                       Gary K. Earley, Treasurer


CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
FORM 10 QSB

                                   FOR QUARTER ENDED                        
SIX MONTHS ENDED
                        03/31/1998      03/31/1997         03/31/1998   
03/31/1997

Operating Revenues  $7,173,161       $7,630,103      $11,841,189  $12,515,296
Cost and Expense
Operating Exp            6,047,059        6,445,749       10,309,802  
10,813,512  
Interest Exp           240,779          219,375          477,121      450,675
Income Tax                    319,729          324,227          361,511     
411,789  
Other Deductions         2,635              577            5,157        1,214
                                                                   
Total                6,610,202        6,989,928       11,153,591   11,677,190  
Operating Income       562,959          640,175          687,598      838,106
Other Income               100              100              100          888  
Corning Natural Gas Appliance Corp.:                            
Operating Revenues     555,028           562,171       1,272,707    1,254,792
Depreciation            59,870            60,754         121,035      122,217  
Other Operating Exp    440,052           426,734         940,685      929,822
Federal Income Tax      13,206            25,132          81,017       72,160
                 
Net Income              41,900            49,551         129,970      130,593
                                         
Net Income           $ 604,959         $ 689,826       $ 817,668    $ 969,587
                       =======          ========        ========    =========  
         
Earnings Per Share   $   1.315         $    1.50       $   1.778    $   2.108
                                                      
Dividends Per Share  $    .0           $      0        $     .33    $    .64   
                                                      
Dividends Declared     $0               $0             $149,501     $294,400  
Shares of common stock outstanding were 460,000 at March 31, 1998  
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.    
                                                                          
See Management's Discussion & Analysis on Page 5.                              
    
                                                                          
                                                                          

                             
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS             
FORM 10-QSB - UNAUDITED                                                        
                        
                                                           
                               MARCH  31, 1998       MARCH 31, 1997
CASH FLOWS FROM OPERATING ACTIVITIES:                                          
    
Net Income                                                   $    817,668      
   $   969,587
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:  
Depreciation                                                369,347             
360,049
Allowance for Funds Used During Const.       0                    0  
    Changes in Assets and Liabilities:                               
    (Increase) Decrease in:                                          
Accounts Receivable                                    (1,452,551)         
(1,361,094)
Materials & Supplies Inventory     (  187,339)              724,573
Other Deferred Charges                           1,319,858               984,555
Prepaid and Other Assets                          263,568               306,636
Increase (Decrease) in:                          
Accounts Payable                                 40,570               270,285
Accrued General Taxes                  72,358                53,765
Accrued Federal Income Tax                      333,938               312,023
Deferred Federal Income Tax            (    81,263)          (    25,682)
Other Liab and Deferred Credits   (   681,664)          (   693,603)
Net Cash Provided (used) by
    Operating Activities                                 814,490             
1,901,094
                                                      
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Capital Expenditures                           ( 502,812)            ( 462,261)
Purchases of Marketable Securities  (  59,173)            ( 497,497)
Net Cash Used in Investing Act      ( 561,985)            ( 959,758)           
                   
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Net Borrowings (Repayments) Under
    Line-of-Credit Agreement                 100,000            (  125,000)
Dividends Paid                                       (    149,500)           ( 
294,400)
Repayment of Long-Term Debt                 0            (  100,000)
Net Cash Provided (used in)
    Financing Activities                         (49,500)           (  519,400)

NET INC. (DEC.) IN CASH
 AND CASH EQUIV.                       203,005               421,936
                                                      
CASH AND CASH EQUIV.
 AT BEG. OF PERIOD                     262,752               180,595           
                        
              
CASH AND CASH EQUIV.
 AT END OF PERIOD               $      465,757           $   602,531
                                      ========             =========
Supplemental Disclosures of Cash Flow Information:                        
Cash paid During the Year for:                                       
Interest (Net of Amount Capitalized) $ 442,524           $   440,027
Income Taxes                                  $ 110,000           $    86,000

                                     CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At March 31, 1998   
and September 30, 1997
Form 10-QSB   Unaudited                     
                                                                               
    
Assets                                                          03/31/98       
  09/30/97
Gas Utility Plant                                         $20,818,424          
$20,3
78,449   
Non-Utility-Principally
 Rented Gas App.                       2,533,082        2,533,498
                                                                 23,351,506    
  22,911,947       
Less:  Accum. Provision
 for Depreciation                     (8,784,540)      (8,478,446)
                                                                 $14,566,966   
  $14,433,501      
Current Assets:                                                 
Cash and Equivalents                                    465,757         
262,752  
Marketable Securities Available
          for Sale                       701,072              641,899
Accounts Receivable                                    2,447,766         
995,215
Materials, Supplies and Inventories    2,176,737        1,989,398
Prepayments and Other                                  783,114        1,046,682 
     Total Current Assets                     6,574,446        4,935,946       
         
Non-Current Assets                                         
Def. Tax Assets                                                 440,224        
  62,000      
Def. Debits - Acctg. for Income Taxes    865,837        1,016,661
Deferred Debits                                            (     72,460)      
1,247,398     
     Total Non-Current Assets                          1,233,601       
2,326,059                                                       
     Total Assets                                     $22,375,013     
$21,695,506
                                                           ===========    
============  
Capitalization & Liabilities                                    
Capitalization:                                                 
   Common Stock                                       2,300,000       
2,300,000     
   Premium on Capital Stock              653,346          653,346    
   Retained Earnings                          2,924,259        2,256,091
                                       5,877,605        5,209,437
Long Term Debt                         9,400,000        9,400,000    
Total Capitalization                                     15,277,605      
14,609,437
                                                      
Current Liabilities:                                                 
   Short Term Notes Payable                       875,000          775,000
   Accounts Payable                                    1,870,910       
1,830,340          
   Customer Deposits and
        Accrued Interest                 239,366          673,114    
   Accrued Federal Income Tax                333,938                0           
   Other Accrued Taxes                                184,725          112,367
 Current Maturities of Long Term Debt          0                0
 Other Current and Accrued
                  Liabilities            235,177          624,790         
     Total Current Liabilities         3,739,116        4,015,611
Accumulated Deferred FIT                       2,591,103        2,444,966
Reserves and Other Liabilities           767,189          625,492
     Total Liab.
 and Capitalization                 $ 22,375,013       $ 21,695,506         
                                                                ==========     
   ==========

See Management's Discussion & Analysis on Page 5