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		Total
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
				June 30, 2001			September 30, 2000
					Unaudited
Assets
Utility plant:
Utility property, plant and equipment:		$22,836,047						$22,251,342
Non-utility - property, plant and equipment		4,230,606						4,176,447
Less accumulated depreciation		10,270,079						9,734,579
Total plant utility and non-utility net		16,796,574						16,693,210
Investments:
Marketable securities available for sale at fair value		1,274,120						1,334,094
Investment in joint venture		184,209						174,794
Total investments		1,458,329						1,508,888
Current assets:
Cash and cash equivalents		203,765						257,035
Customer A/R, less allowance for uncollectibles		1,964,606						1,310,689
Gas stored underground, at average cost		484,476						2,194,436
Gas and appliance inventories		637,796						638,891
Prepaid expenses		635,894						529,905
Total current assets		3,926,537						4,930,956
Deferred debits and other assets:
Regulatory assets:
Income taxes recoverable through rates		1,016,661						1,016,661
Prepaid pension costs		2,066,365						1,833,979
Unrecovered gas costs		475,463						1,362,394
Goodwill net of amortization		1,651,895						1,763,338
Unamortized debt issuance cost		333,590						349,759
Other		791,841						512,708
Total deferred debits and other assets		6,335,815						6,838,839
Total assets		28,517,255						29,971,893
		==============						==================
CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
Capitalization and liabilities:			June 30, 2001					September 30, 2000
			Unaudited
Common stockholders' equity:
Common stock(common stock $5.00 par
value per share. Authorized 1,000,000
shares;issued and outstanding 460,000 shares)			2,300,000					2,300,000
Other paid-in capital			653,346					653,346
Retained earnings			2,201,701					1,967,389
Accumulated other comprehensive income-
net unrealized gain on securities available
for sale (net of income taxes)			30,830					130,790
Total common stockholders' equity			5,185,877					5,051,525
Long-term debt, less current installments			10,918,934					11,429,421
Current liabilities:
Current portion of long term debt			579,808					374,335
Borrowings under lines-of-credit			3,574,692					5,175,359
Accounts payable			1,654,329					1,715,628
Accrued expenses			583,011					591,221
Customer deposits and accrued interest			410,352					674,458
Deferred income taxes			120,103					120,103
Accrued general taxes			382,787					119,331
Supplier refunds			78,809					294,676
Prepaid income taxes			154,610					(354,619)
Dividends payable			149,500					149,500
Total current liabilities			7,688,001					8,859,992
Deferred credits and other liabilities:
Deferred income taxes			2,460,407					2,448,994
Deferred compensation and post-retirement
benefits			2,163,785					2,089,854
Other			100,251					92,107
Total deferred credits and other liabilities			4,724,443					4,630,955
Total capitalization and liabilities	$		28,517,255			$		29,971,893
				==============					==================

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			June 30, 2000
			---------------------			---------------------		---------------------			---------------------
Utility Operating Revenues		$	3,953,065		$	3,350,548	$	22,373,290		$	14,668,666
			---------------------			---------------------		---------------------			---------------------
Cost and Expense
	Operating Expenses		3,963,692			3,267,838		20,753,402			13,129,784
	Interest Expense		230,251			264,382		714,616			816,167
	Income Tax		(68,668)			(41,793)		359,478			292,651
	Other Deductions, Net		2,792			5,830		24,764			8,052
			---------------------			---------------------		---------------------			---------------------
Total Costs and Expenses			4,128,067			3,496,257		21,852,260			14,246,654
Utility Operating Income (Loss)			(175,002)			(145,709)		521,030			422,012
			---------------------			---------------------		---------------------			---------------------
Other Income			12,027			7,390		26,118			13,189
			---------------------			---------------------		---------------------			---------------------
Corning Natural Gas Appliance Corp.
	Operating Revenues		459,080			549,325		1,810,522			1,932,505
	Depreciation		56,753			57,616		173,529			179,099
	Operating Expense		372,104			428,810		1,357,896			1,463,793
	Federal Income Tax		10,786			25,037		97,937			104,983
	Equity in Earnings of Assoc. Cos.		21,857			35,270		(45,614)			22,099
			---------------------			---------------------		---------------------			---------------------
	Net Income of Appliance Corp.		41,294			73,132		135,546			206,729
			---------------------			---------------------		---------------------			---------------------
	Net Income (Loss)	$	(121,681)		$	(65,187)	$	682,694		$	641,930
			============			============		============			============
Earnings (Loss) Per Share-basic & diluted		$	(0.265)		$	(0.142)	$	1.484		$	1.396
Dividends Per Share		$	0.650		$	0.650	$	0.975		$	0.975
Dividends Declared		$	299,000		$	299,000	$	448,500		$	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	$	641,930
Other comprehensive income(loss), net of tax:
Unrealized gains(losses) on securities:		(11,732)			14,769			99,960		95,121
		---------------------			---------------------			-------------------		-------------------
Comprehensive Income (loss)	$	(133,412)		$	(50,418)	$		782,655	$	737,051
		=============			=============			============		============

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Nine Months Ended June 30, 2001 & 2000
Unaudited
Form 10 QSB
					June 30, 2001		June 30, 2000
Cash flows from operating activities:
	Net income			$	682,695	$	641,930
	Adjustments to reconcile net income to net cash(used in)
		provided by operating activities:
			Depreciation and amortization		708,209		693,278
			Loss(gain) on sale of marketable securities		59,974		(30,489)
			Deferred income taxes		131,516		0
			Loss on joint venture		(9,415)		0
Changes in assets and liabilities:
	(Increase) decrease in:
			Accounts receivable		(653,917)		381,409
			Gas stored underground		1,709,960		(912,135)
			Gas and appliance inventories		1,095		17,842
			Prepaid expenses		(105,989)		(105,925)
			Unrecovered gas costs		886,931		(401,713)
			Prepaid income taxes		509,229		259,712
			Deferred income tax asset		0		87,926
			Deferred charges-pension and other		(158,455)		(240,568)
			Other assets		(279,133)		37,676
	Increase(decrease) in:
			Accounts payable		(61,299)		509,069
			Customer deposit liability		(264,106)		0
			Accrued general taxes		263,456		99,740
			Supplier refunds due customers		(215,868)		20,909
			Other liabilities and deferred credits		(65)		86,101
					----------------------------		----------------------------
			Net cash provided by operating activities		3,204,818		1,144,762
					----------------------------		----------------------------
Cash flows from investing activities:
		Capital expenditures, net of minor disposals			(783,803)		(866,067)
					----------------------------		----------------------------
			Net cash used in investing activities		(783,803)		(866,067)
					---------------------------		----------------------------
Cash flows from financing activities:
		Net borrowings under lines-of-credit			(1,600,667)		591,947
		Dividends paid			(448,500)		(448,500)
		Repayment of long-term debt			(305,015)		(334,600)
					----------------------------		----------------------------
			Net cash provided by financing activities		(2,354,182)		(191,153)
					------------------------		------------------------
			Net (decrease) increase in cash		(53,269)		87,542
			Cash and cash equivalents at beginning of period		257,035		205,787
					----------------------------		----------------------------
			Cash and cash equivalents at end of period	$	203,765	$	293,329
					================		================
Supplemental disclosures of cash flow information:
	Cash paid during the period for:
		Interest		$	754,072		337,148
		Income taxes			153,618		231,500
					================		================