10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2011

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

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 incorporation or organization)	(I.R.S. employer Identification no.)

330 W. William St.

Corning, New York 14830

(Address of principal executive offices, including zip code)

(607) 936-3755

(Registrant's telephone number, including area code)

Securities registered pursuant to Section12(b) of the Act:

None

Securities registered pursuant to Section12(g) of the Act:

Common Stock, par value $5.00 per share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. YES [ ] NO [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. YES [ ] NO [X]

Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). YES [X] NO [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of Regulation S-K is not contained herein and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of "large accelerated filer", "accelerated filer" and a "smaller reporting company" in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated Filer [ ] Accelerated Filer [ ] Non-Accelerated Filer [ ] Smaller Reporting Company [X]

Indicate by check mark whether the registrant is a shell company. YES [ ] NO [X]

The aggregate market value of the 1,106,068 shares of the Common Stock held by non-affiliates of the Registrant at the $14.83 average of bid and asked prices as of the last business day of registrant's most recently completed second fiscal quarter, March 31, 2011, was $16,358,498.

Number of shares of Common Stock outstanding as of the close of business on December 1, 2011: 1,823,967

Explanatory Note

Corning Natural Gas Corporation is filing this Amendment No. 1 (the "Amendment") on Form 10-K/A to amend its Annual Report on Form 10-K for the fiscal year ended September 30, 2011 (the "Report") that was filed with the Securities and Exchange Commission on December 28, 2011, for the purpose of furnishing Exhibit 101 - Interactive Data File (XBRL Exhibit), which was not included with the original filing.

This Amendment does not reflect any subsequent events occurring after the original filing date of the Report and does not modify or update in any way disclosures made in the Report except to furnish the exhibit described above that should have been attached to the original filing.

PART IV

ITEM 15 - EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Financial Statement Schedules (see Item 8 Financial Statements and Supplementary Data)
(b) Exhibits
Exhibits incorporated by reference for filings made before January 1, 1995 may be found in the Company's Commission File 0-643
	3.1**	The Company's Restated Certificate of Incorporation, (incorporated by reference to
		Exhibit 3.1 of the Company's Current Report on Form 8-K dated September 26, 2007)
	3.2**	Second Amended and Restated By-Laws of the Company (incorporated by reference
		to Annex D to the Company's Definitive Proxy Statement filed on April 24, 2007
		with the Securities and Exchange Commission)
	4.1**	The Company's Stock Plan (incorporated by reference to Annex A to the Company's
		Definitive Proxy Statement filed on April 24, 2007 with the Securities and
		Exchange Commission)
	4.2**	Form of Subscription Rights Certificate (incorporated by reference to Exhibit 4.1 of
		the Company's amendment to Registration Statement on Form S-3/A filed on July
		12, 2007 with the Securities and Exchange Commission)
	4.3**	Form of Warrant Certificate (incorporated by reference to Exhibit 4.2 of the
		Company's amendment to Registration Statement on Form S-3/A filed on July 12,
		2007 with the Securities and Exchange Commission)
	4.4**	Warrant Agreement between the Company and Registrar and Transfer Company, as
		Warrant Agent, dated as of July 13, 2007 (incorporated by reference to Exhibit 4.3
		of the Company's amendment to Registration Statement on Form S-3/A filed on
		July 12, 2007 with the Securities and Exchange Commission)
	4.5**	Form of Subscription Rights Certificate (incorporated by reference to Appendix B
		of the Company's amendment to Registration Statement on Form S-1/A filed on
		July 9, 2010 with the Securities and Exchange Commission)
	10.1*	Employment Agreement dated November 30, 2006 between Michael German and
		the Company (incorporated by reference to Exhibit 10.2 of the Company's Current
		Report on Form 8-K dated November 30, 2006)
	10.2*	Consulting, Confidentiality, and Non-Competition Agreement dated November 30,
		2006, between the Company and Thomas K. Barry (incorporated by reference to
		Exhibit 10.1 of the Company's Current Report on Form 8-K dated November 30, 2006)
	10.3*	Amended and Restated Severance Agreement effective August 18, 2006 between
		the Company and Thomas K. Barry (incorporated by reference to Exhibit 10.17 of
		the Company's Current Report on Form 8-K dated August 14, 2006)
	10.4*	Amended and Restated Severance Agreement effective August 18, 2006 between
		the Company and Kenneth J. Robinson (incorporated by reference to Exhibit 10.18
		of the Company's Current Report on Form 8-K dated August 14, 2006)
	10.5**	Agreement between the Company and Local 139, dated September 1, 1998
		(incorporated by reference to the Company's Form 10-KSB for December 31, 1998)
	10.6**	Service Agreement with CNG Transmission Corporation (incorporated by reference
		to the Corporation's Form 10-KSB for December 31, 1993)
	10.7**	Sales Agreement with Bath Electric, Gas and Water (incorporated by reference to
		the Company's Form 10-KSB for December 31, 1989)
	10.8**	Transportation Agreement between the Company and New York State Electric and
		Gas Corporation (incorporated by reference to the Company's Form 10-KSB for December 31, 1992)
	10.9**	Transportation Agreement between the Company and Corning Incorporated (incorporated by reference to the
		Company's Form 10-KSB for December 31, 1992)
	10.10**	Service Agreement with Columbia Gas Transmission Co. (incorporated by reference
		to the Company's Form 10-KSB for December 31, 1993)
	10.11**	Commercial Line of Credit Agreement made by the Company to Community Bank N.A. dated
		March 19, 2008 (incorporated by reference to Exhibit 10.1 of the Company's Current Report
		on Form 8-K dated March 20, 2008)
	10.12**	Commercial Line of Credit Agreement and Note made by the Company to Community Bank N.A.
		dated March 19, 2008 (incorporated by reference to Exhibit 10.2 of the Company's Current
		Report on Form 8-K dated March 20, 2008)
	10.13**	Change in Terms Agreements made by the Company to Community Bank N.A. dated
		October 22, 2007 (incorporated by reference to Exhibit 10.3 of the Company's Current Report
		on Form 8-K dated March 20, 2008)
	10.14**	Change in Terms Agreements made by the Company to Community Bank N.A. dated
		March 19, 2008 (incorporated by reference to Exhibit 10.4 of the Company's Current Report
		on Form 8-K dated March 20, 2008)
	10.15**	Credit Agreement made by the Company to Manufacturers and Traders Trust Company dated
		May 7, 2008 (incorporated by reference to Exhibit 10.1 of the Company's Current Report
		on Form 8-K dated May 7, 2008)
	10.16**	LIBOR Term Note made by the Company in favor of Manufacturers and Traders Trust
		Company dated May 7, 2008 (incorporated by reference to Exhibit 10.2 of the Company's
		Current Report on Form 8-K dated May 7, 2008)
	10.17**	Specific Security Agreement made by the Company and Manufacturers and Traders Trust
		Company dated May 7, 2008 (incorporated by reference to Exhibit 10.3 of the Company's
		Current Report on Form 8-K dated May 7, 2008)
	10.18**	General Security Agreement made by the Company and Manufacturers and Traders Trust
		Company dated May 7, 2008 (incorporated by reference to Exhibit 10.4 of the Company's
		Current Report on Form 8-K dated May 7, 2008)
	10.19**	Mortgage between the Company and Manufacturers and Traders Trust Company dated
		May 7, 2008 (incorporated by reference to Exhibit 10.5 of the Company's Current Report
		on Form 8-K dated May 7, 2008)
	10.20**	Credit Agreement made by the Company to Manufacturers and Traders Trust Company dated
		October 16, 2008 (incorporated by reference to Exhibit 10.1 of the Company's Current Report
		on Form 8-K dated October 16, 2008)
	10.21**	Replacement Term Note of the Company in favor of Manufacturers and Traders Trust Company
		dated October 16, 2008 (incorporated by reference to Exhibit 10.2 of the Company's Current
		Report on Form 8-K dated October 16, 2008)
	10.22**	Demand Note made by the Company in favor of Manufacturers and Traders Trust Company
		dated October 27, 2008 (incorporated by reference to Exhibit 10.1 of the Company's Current
		Report on Form 8-K dated October 27, 2008)
	10.23**	Base Contract for Sale and Purchase of Natural Gas between the Company and Atmos Energy
		Marketing, LLC dated July 1, 2008 (incorporated by reference to Exhibit 10.1 of the Company's
		Current Report on Form 10-Q/A dated May 12, 2009)
	10.24**	Line of Credit Agreement between the Company and Community Bank, N.A. dated June 5, 2009
		(incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated
		June 5, 2009)
	10.25**	Commercial Line of Credit Agreement and Note between the Company and Community Bank, N.A.
		dated June 5, 2009 (incorporated by reference to Exhibit 10.2 of the Company's Current Report on
		Form 8-K dated June 5, 2009)
	10.26**	Amended Warrant Agreement dated July 1, 2009 (incorporated by reference to Exhibit 10.1 of the
		Company's Current Report on Form 8-K dated July 1, 2009)
	10.27*	First Amendment to Employment Agreement between Michael I. German and the Company dated
		December 31, 2008 (incorporated by reference to Exhibit 10.1 of the Company's Current Report
		on Form 10-Q dated August 12, 2009)
	10.28**	Amended and Restated 2007 Stock Plan (incorporated by reference to Exhibit 10.2 of the Company's
		Current Report on Form 10-Q dated August 12, 2009)
	10.29**	Line of Credit Agreement between the Company and Community Bank, N.A. dated September 30,
		2009 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated
		September 30, 2009)
	10.30**	First Amendment to Note Agreements between the Company and Great West Life & Annuity
		Insurance Company dated December 1, 2009 (incorporated by reference to Exhibit 10.1 of the
		Company's Current Report on Form 8-K dated January 6, 2010)
	10.31**	Intercreditor and Collateral Agency Agreement among Manufacturers and Traders Trust Company, as
		collateral agent and bank lender, and Great West Life & Annuity Insurance Company dated December 1,
		2009 (incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated
		January 6, 2010)
	10.32**	Amendment to Credit Agreement between the Company and Manufacturers and Traders Trust Company
		dated March 4, 2010 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on
		Form 8-K dated March 8, 2010)
	10.33**	Replacement Term Note of the Company in favor of Manufacturers and Traders Trust Company
		dated March 4, 2010 (incorporated by reference to Exhibit 10.2 of the Company's Current Report on
		Form 8-K dated March 8, 2010)
	10.34**	Letter of Commitment by and between the Company and Community Bank, N.A. with respect to a
		line of credit dated March 11, 2010 (incorporated by reference to Exhibit 10.1 of the Company's Current
		Report on Form 8-K dated March 30, 2008)
	10.35**	Line of Credit Agreement between the Company and Community Bank, N.A. dated March 30, 2010
		(incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated
		March 30, 2010)
	10.36**	Commercial Line of Credit Agreement and Note and Commercial Security Agreement between the
		Company and Community Bank, N.A. dated March 30, 2010 (incorporated by reference to Exhibit 10.3
		of the Company's Current Report on Form 8-K dated March 30, 2010)
	10.37**	Letter of Commitment by and between the Company and Community Bank, N.A. with respect to a
		term loan dated March 11, 2010 (incorporated by reference to Exhibit 10.1 of the Company's Current
		Report on Form 8-K dated May 7, 2010)
	10.38**	Term Loan Agreement between the Company and Community Bank, N.A. dated March 31, 2010
		(incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated
		May 7, 2010)
	10.39**	Commercial Promissory Note between the Company and Community Bank, N.A. dated March 31, 2010
		(incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K dated
		May 7, 2010)
	10.40**	Commercial Security Agreement between the Company and Community Bank, N.A. dated March 31, 2010
		(incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K dated
		May 7, 2010)
	10.41**	Commercial Security Agreement between the Company and Community Bank, N.A. dated March 31, 2010
		(incorporated by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K dated
		May 7, 2010)
	10.42**	Commitment Letter between the Company and Manufacturers and Traders Trust Company dated
		May 10, 2010 (incorporated by reference to Exhibit 10.16 of the Company's Current Report on Form 10-Q
		dated May 12, 2010)
	10.43**	Negotiated 311 Gas Transportation Agreement between the Company and Talisman Energy USA, Inc.
		dated May 13, 2010, with confidential portions redacted. Confidential information omitted and filed
		separately with the SEC (incorporated by reference to Exhibit 10.1 of the Company's Current Report
		on Form 8-K dated May 21, 2010)
	10.44**	Disclosure regarding Promissory Note between the Company and Five Star Bank dated September 27, 2010
		(incorporated by reference to Item 7.01 on the Company's Current Report on Form 8-K dated August 27, 2010)
	10.45**	Letter of Commitment between the Company and Manufacturers and Traders Trust Company dated June 16,
		2010 (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated
		October 27, 2010)
	10.46**	Multiple Disbursement Term Note between the Company and Manufacturers and Traders Trust Company
		dated October 27, 2010 (incorporated by reference to Exhibit 10.2 of the Company's Current Report on
		Form 8-K dated October 27, 2010)
	10.47**	General Security Agreement made by the Company and Manufacturers and Traders Trust Company
		dated October 27, 2010 (incorporated by reference to Exhibit 10.3 of the Company's Current Report on
		Form 8-K dated October 27, 2010)
	10.48**	Specific Security Agreement made by the Company and Manufacturers and Traders Trust Company
		dated October 27, 2010 (incorporated by reference to Exhibit 10.4 of the Company's Current Report on
		Form 8-K dated October 27, 2010)
	10.49**	Credit Agreement made by the Company and Manufacturers and Traders Trust Company dated
		October 27, 2010 (incorporated by reference to Exhibit 10.4 of the Company's Current Report on
		Form 8-K dated October 27, 2010)
	10.50**	Letter of Commitment between the Company and Community Bank N.A dated February 16, 2011
		(Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated February 28, 2011)
	10.51**	Letter of Credit Agreement between the Company and Community Bank N.A dated February 16, 2011
		(Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated February 28, 2011)
	10.52**	Change in Terms Agreement between the Company and Community Bank N.A. dated March 10, 2011
		(Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated March 10, 2011)
	10.53**	Multiple Disbursement Term Note between the Company and Manufacturers and Traders Trust Company
		dated July 14, 2011 (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K
		dated July 14, 2011)
	10.54**	Letter of Credit Agreement between the Company and Manufacturers and Traders Trust Company
		dated July 14, 2011 (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated
		July 14, 2011)
	10.55**	Promissory Note between the Company and Five Star Bank dated September 1, 2011
	101****	The following materials from the Corning Natural Gas Corporation Annual Report on Form 10-K for the period
		ended September 30, 2011, formatted in XBRL (eXtensible Business Reporting Language):
		(i) the Condensed Consolidated Balance Sheets at September 30, 2011 and 2010
		(ii) the Consolidated Statements of Income and Other Comprehensive Income for the years ended
		September 30, 2011, 2010 and 2009
		(iii) the Condensed Consolidated Statements of Stockholders' Equity for the years ended
		September 30, 2011, 2010 and 2009
		(iv) the Condensed Consolidated Statements of Cash Flows for the years ended September 30, 2011, 2010 and 2009
		(v) related notes to the Condensed Consolidated financial Statements
		As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11
		and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.
	21**	Subsidiary of Company
	31.1***	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act - Michael I. German
	31.2***	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act - Firouzeh Sarhangi
	32.1****	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
		*Indicates management contract or compensatory plan or arrangement **Previously filed with Corning Natural Gas Corporation's Annual Report on Form 10-K for the fiscal year ended September 30, 2011, as filed with the Securities and Exchange Commission on December 29, 2011. ***Filed herewith ****Furnished herewith

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CORNING NATURAL GAS CORPORATION (Registrant)

Date: December 29, 2011 By:	/s/ Michael I. German
	Michael I. German
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: December 29, 2011	/s/ Firouzeh Sarhangi
	Firouzeh Sarhangi, Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer)
Date: December 29, 2011	/s/ Michael I. German
	Michael I. German, President and Chief Executive Officer and Director
	(Principal Executive Officer)
Date: December 29, 2011	/s/ Henry B. Cook
	Henry B. Cook, Chairman of the Board of Directors
Date: December 29, 2011	/s/ Ted W. Gibson
	Ted W. Gibson, Director
Date: December 29, 2011	/s/ Joseph P. Mirabito
	Joseph P. Mirabito, Director
Date: December 29, 2011	/s/ William Mirabito
	William Mirabito, Director
Date: December 29, 2011	/s/ George J. Welch
	George J. Welch, Director
Date: December 29, 2011	/s/ John B. Williamson III
	John B. Williamson III, Director

EX-31

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

17 CFR SECTION 240.13a-14(a)

I, Michael I. German, certify that:

1. I have reviewed this annual report on Form 10-K/A of Corning Natural Gas Corporation for the fiscal year ended September 30, 2011;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 29, 2011

/s/ Michael I. German

Michael I. German, Chief Executive Officer and President

(Principal Executive Officer)

EX-31

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

17 CFR SECTION 240.13a-14(a)

1. I have reviewed this annual report on Form 10-K/A of Corning Natural Gas Corporation for the fiscal year ended September 30, 2011;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 29, 2011

/s/ Firouzeh Sarhangi

Firouzeh Sarhangi, Chief Financial Officer and Treasurer

(Principal Financial and Accounting Officer)

EX-32

Exhibit 32.1

CERTIFICATION FURNISHED PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Annual Report of Corning Natural Gas Corporation (the "Company") on Form 10-K/A for the period ending September 30, 2011 (the "Report") with the Securities and Exchange Commission, I, Michael I. German, Chief Executive Officer and President of the Company and I, Firouzeh Sarhangi, Chief Financial Officer and Treasurer of the Company, certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Company for such period.

Dated: December 29, 2011

/s/ MICHAEL I. GERMAN

Michael I. German, Chief Executive Officer and President

(Principal Executive Officer)

/s/ FIROUZEH SARHANGI

Firouzeh Sarhangi, Chief Financial Officer and Treasurer

(Principal Financial and Accounting Officer)

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Major Customers

12 Months Ended

Sep. 30, 2011

Major Customers

Major Customers

(2) Major Customers

The Company has three major customers to which the Company delivers gas: Corning Incorporated, New York State Electric & Gas (NYSEG) and Bath Electric Gas & Water Systems (BEGWS). The loss of any of these customers could have a significant impact on the Company’s financial results. Total revenue and deliveries to these customers were as follows:

	Deliveries		Revenue
	Mcf	% of Total	Amount	% of Total
Corning Incorporated
Year ended September 30, 2011	2,811,000	29	$1,263,000	6
Year ended September 30, 2010	2,596,000	29	$1,149,000	5
Year ended September 30, 2009	1,604,000	20	$690,000	3
NYSEG
Year ended September 30, 2011	3,374,000	35	$341,593	1
Year ended September 30, 2010	3,156,000	35	$335,000	1
Year ended September 30, 2009	2,804,000	35	$328,000	1
BEGWS
Year ended September 30, 2011	639,000	7	$2,037,000	9
Year ended September 30, 2010	623,000	7	$2,164,000	10
Year ended September 30, 2009	654,000	8	$2,955,000	12

Although Talisman Energy USA Incorporated is a significant customer, we do not deliver gas to it. Rather we receive gas from several of its gathering systems and wells, and transport its gas through our system. Therefore, it is excluded from this table.

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Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2011

Summary Of Significant Accounting Policies

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Corning Natural Gas Corporation (the Company) is a gas distribution company providing gas on a commodity and transportation basis to its customers in the Southern Tier of New York State. The Company follows the Uniform System of Accounts prescribed by the Public Service Commission of the State of New York (PSC) which has jurisdiction over and sets rates for New York State gas distribution companies. The Company’s regulated operations meet the criteria and accordingly, follow the accounting and reporting of FASB ASC 980 "Regulated Operations". The Company’s consolidated financial statements contain the use of estimates and assumptions for reporting certain assets, liabilities, revenue and expenses and actual results could differ from the estimates. The more significant accounting policies of the Company are summarized below.

(a) Principles of Consolidation and Presentation

The consolidated financial statements include the Company and its wholly owned subsidiary, the Corning Natural Gas Appliance Corporation.

It is the Company’s policy to reclassify amounts in the prior year financial statements to conform to the current year presentation.

(b) Cash and Cash Equivalents

Cash and cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less. Cash and cash equivalents at financial institutions may periodically exceed federally insured limits.

(c) Accounts Receivable

Accounts receivable are stated net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances, taking into consideration the age of past due accounts.

(d) Debt Issuance Costs

Costs associated with the issuance of debt by the Company are deferred and amortized over the lives of the related debt.

(e) Property, Plant and Equipment

Utility plant is stated at the historical cost of construction. Those costs include payroll, fringe benefits, materials and supplies and transportation costs. The Company charges normal repairs to maintenance expense.

(f) Depreciation

The Company provides for depreciation for accounting purposes using a straight-line method based on the estimated economic lives of property, which ranges from 3 to 55 years for all assets except utility plant. The depreciation rate used for utility plant, expressed as an annual percentage of depreciable property was 3.1% in 2011, 1.6% in 2010 and 2.1% in 2009. As of September 1, 2009, 100% of the fixed amount and 80% of the monthly volumetric charge due to line 13 (our pipeline connecting Marcellus production in Pennsylvania to the rest of our distribution system) were allocated to offset our costs of building the pipeline. As of fiscal year 2011, we are recognizing the revenue and increasing the accumulated depreciation and depreciation expense instead of offsetting plant. This increased the annual percentage rate in fiscal 2011 by 1.4%. At the time utility properties are retired, the original cost plus costs of removal less salvage are charged to accumulated depreciation.

(g) Revenue and Natural Gas Purchased

The Company records revenues from residential and commercial customers based on meters read on a cycle basis throughout each month, while certain large industrial and utility customers’ meters are read at the end of each month. The Company does not accrue revenue for gas delivered but not yet billed, as the New York PSC requires that such accounting must be adopted during a rate proceeding, which the Company has not done. The Company operates a weather normalization clause as protection against severe weather fluctuations. This affects space heating customers and is activated when degree days are 2.2% greater or less than a 30 year average. As a result, the effect on revenue fluctuations on weather related gas sales is somewhat moderated.

In addition to weather normalization, starting in September 2009, the Company started a revenue decoupling mechanism (RDM). The RDM reconciles actual delivery service revenues to allowed delivery service revenues (which are based on the annual customer and volume forecasts in the last rate case) for certain residential customers. The Company will refund or surcharge customers for differences between actual and allowed revenues. The shortfall or excess after the annual reconciliation will be surcharged or refunded to customers over a twelve month period starting the next calendar year.

Gas purchases are recorded on readings of suppliers’ meters as of the end of the month. The Company’s rate tariffs include a Gas Adjustment Clause (GAC) which adjusts rates to reflect changes in gas costs from levels established in the rate setting process. In order to match such costs and revenue, the PSC has provided for an annual reconciliation of recoverable GAC costs with applicable revenue billed. Any excess or deficiency in GAC revenue billed is deferred and the balance at the reconciliation date is either refunded to or recovered from customers over a subsequent 12-month period.

(h) Marketable Securities

Marketable securities, which are intended to fund the Company’s deferred compensation plan obligations, are classified as available for sale. Such securities are reported at fair value based on quoted market prices, with unrealized gains and losses, net of the related income tax effect, excluded from income, and reported as a component of accumulated other comprehensive income in stockholders’ equity until realized. The cost of securities sold was determined using the specific identification method. For all investments in the unrealized loss position, none have been in an unrealized loss position for more than 12 months. None are other than temporary impairments based on management’s analysis of available market research. In 2011, 2010 and 2009, the Company sold equity securities for gains (losses) included in earnings of $114,677, $57,988 and ($124,207) respectively.

The Company has determined the fair value of certain assets through application of FASB ASC 820 "Fair Value Measurements and Disclosures".

Fair value of assets and liabilities measured on a recurring basis at September 30, 2011 and 2010 are as follows:

Fair Value Measurements at Reporting Date Using:	Fair Value	Quoted Prices In Active Markets for Identical Assets/Liabilities (Level 1)	Level 2	Level 3
September 30, 2011
Available-for-sale securities	$2,267,268	$2,267,268	$-	$-
September 30, 2010
Available-for-sale securities	$2,366,870	$2,366,870	$-	$-

Financial assets and liabilities valued using level 1 inputs are based on unadjusted quoted market prices within active markets.

A summary of the marketable securities at September 30, 2011, 2010 and 2009 is as follows:

	Cost Basis	Unrealized Gain	Unrealized Loss	Market Value
2011
Cash and equivalents	$55,185	$-	$-	$55,185
MetLife stock value	51,185	-	-	51,185
Government and agency issues	149,975	586	-	150,561
Corporate bonds	560,606	3,727	-	564,333
Mutual funds	185,762	-	19,628	166,134
Equity securities	1,391,555	-	111,685	1,279,870
Total securities	$2,394,268	$4,313	$131,313	$2,267,268
2010
Cash and equivalents	$116,206	$-	$-	$116,206
MetLife stock value	51,185	-	-	51,185
Government and agency issues	100,000	923	-	100,923
Corporate bonds	593,861	21,678	-	615,539
Mutual funds	125,547	-	5,821	119,726
Equity securities	1,315,751	47,540	-	1,363,291
Total securities	$2,302,550	$70,141	$5,821	$2,366,870
2009
Cash and equivalents	$259,231	$-	$-	$259,231
MetLife stock value	51,185	-	-	51,185
Government and agency issues	50,000	329	-	50,329
Corporate bonds	531,435	12,980	-	544,415
Mutual funds	285,777	9,876	-	295,653
Equity securities	1,091,433	-	16,046	1,075,387
Total securities	$2,269,061	$23,185	$16,046	$2,276,200

(i) Inventories

Inventories are stated at the lower of cost or market, cost being determined on a first-in, first-out basis.

(j) Federal Income Tax

The Company uses the asset and liability method to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. In addition, such deferred tax assets and liabilities will be adjusted for the effects of enacted changes in tax laws and rates.

(k) Dividends

On March 13, 2009, the NYPSC in Case 07-G-0772 lifted the prohibition on the payment of dividends on the Company’s common stock but limited pay outs to a percentage of earnings tied to the Company’s debt/equity ratio. At its regular meeting on December 15, 2009, the Board of Directors approved an increase from $.12 a share to $.13 a share for shareholders of record on December 31, 2009, payable on January 15, 2010. At its regular meeting on February 5, 2010, the Board of Directors approved an increase in the quarterly dividend from $.13 a share to $.15 a share. After adjusting for the stock dividend paid in April 2011 (see third paragraph in this section below for additional information), dividends paid to shareholders of record were $.24 a share in 2009 and $.39 a share in 2010. At its regular meeting on December 14, 2010, the Board of Directors approved an increase in the quarterly dividend from $.15 a share to $.1725 a share and was paid on January 15, 2011 to shareholders of record as of December 31, 2010, and on April 15, 2011 for shareholders of record on March 31, 2011. The dividend rate of $.1725 reflects the pre-stock dividend rate (see third paragraph). The Board of Directors reviewed the quarterly dividend rate at its next regularly scheduled meeting on June 14, 2011 and adjusted the dividend rate to $.115. This dividend was paid on July 15, 2011 to shareholders of record on June 30, 2011 and on October 15, 2011 to shareholders of record on September 30, 2011.

On May 28, 2009, the Company registered 100,000 shares of common stock with a par value of $5 per share for a dividend reinvestment program. As part of this program 761 shares were issued in 2009, 2,319 shares in 2010 and 3,975 shares in 2011. A total of 7,055 shares have been issued since the program started.

On March 21, 2011, the Company set April 1, 2011 as the record date for a one for two stock dividend on its outstanding common stock as authorized by the NYPSC in an order in Case 10-G-0647 dated March 17, 2011. Each shareholder of record as of close of business on the record date was paid one share of common stock for each two shares held by such holder on April 20, 2011. Due to this stock dividend, all computations of number of shares and earnings per share have been adjusted retroactively for prior periods to reflect the change in capital structure.

(l) Accounting for Impairment

The Financial Accounting Standards Board (FASB) ASC 360-10-15, "Accounting for the Impairment or Disposal of Long-Lived Assets" establishes accounting standards to account for the impairment of long-lived assets, and certain identifiable intangibles. Under FASB ASC 360-10-15 the Company reviews assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. FASB ASC 360-10-15 also requires that a rate regulated enterprise recognize an impairment when regulatory assets are no longer probable of recovery. No impairment losses were incurred for the years ended September 30, 2011, 2010, and 2009.

(m) New Accounting Pronouncements

In April 2010, FASB issued FASB ASU 2010-13, "Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades". The standard amends ASC Topic 718-10, "Compensation-Stock Compensation". This clarifies the denomination and classification of employee share-based payment awards in the currency of a market in which a substantial portion of an entity’s equity securities trades that differs from the functional currency of the employer entity or the payroll currency of the employee. This amendment is in effect for fiscal years beginning on or after December 15, 2010. The Company does not expect FASB ASC 718-10 to have a material effect on its consolidated financial statements.

In July 2010, FASB issued FASB ASU 2010-20, "Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses". The standard amends ASC Topic 310, "Receivables", to enhance disclosures about the credit quality of financing receivables and the allowance for credit losses by requiring an entity to provide a greater level of disaggregated information and to disclose credit quality indicators, past due information, and modifications of its financing receivables. FASB ASU 2010-20 is effective for interim or annual fiscal years beginning after December 15, 2010 for public entities. The Company does not expect FASB ASU 2010-20 to have a material effect on its consolidated financial statements.

In May 2011, FASB issued FASB ASU 2011-04, "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IRFSs". This standard amends ASC Topic 820, "Fair Value Measurement", to clarify intent about the application of existing fair value measurements and standardize standard fair value measurements and disclosures. FASB ASU 2011-04 is effective for interim or annual fiscal years ending after December 15, 2011 for public entities. The Company is evaluating the impact the adoption of FASB ASU 2010-20 will have on its consolidated financial statements.

In June 2011, FASB issued FASB ASU 2011-05, "Comprehensive Income" (Topic 220). This standard increases the prominence of items reported in other comprehensive income and dictates presentation of these items in financial statements. FASB ASU 2011-05 is effective for interim or annual fiscal years ending after December 15, 2011 for public entities. The Company is evaluating the impact the adoption of FASB ASU 2010-20 will have on its consolidated financial statements.

(n) Revenue Taxes

The Company collects state revenue taxes. The amount included in Utility Operating Revenue and Taxes other than Federal Income Taxes was $134,398, $131,049 and $118,579 in 2011, 2010, and 2009 respectively.

(o) Stock Based Compensation

The Company accounts for stock based awards in accordance with FASB ASC 718 (formerly SFAS No. 123(R)). During fiscal 2010, the Company did not grant any options, but did award shares as compensation to our directors. On April 1, 2008, the board of directors agreed to increase the compensation for all board members from 50 shares of our restricted common stock for each quarter of service as a director to 150 shares of our restricted common stock for each quarter of service as a director. On December 15, 2009, the board of directors approved an increase in its compensation from 150 shares of our restricted common stock for each quarter of service to 250 restricted shares quarterly effective as of January 1, 2010. The shares awarded will become unrestricted upon a director leaving the board. Directors who also serve as officers of Corning are not compensated for their service as directors.On November 9, 2010, directors were issued compensatory shares for service from July 2010 through September 30, 2010. Since these shares are restricted, in recording compensation expense, the expense accrued is 25% less than the closing price of the stock on the day the stock was awarded. Management of the Company believes this discount is reasonable for thinly traded stock such as that of the Company. The Company did not discount the value of the stock paid to the directors who resigned from the board since those shares became unrestricted when held by a non-affiliate for at least six months. The directors’ quarterly compensation was adjusted to 375 restricted shares in April 2011 due to the one for two stock dividend distributed by the Company (see Note (k) for further information). On April 29, 2011, shares were issued for service for the quarters ended December 31, 2010 and March 31, 2011. Joseph Mirabito, William Mirabito and John Williamson III were paid 247 shares of common stock for the quarter ended December 31, 2010 because they served for a portion of that quarter. Information regarding shares of stock awarded to directors in fiscal 2011 is summarized below.

	Fees Earned or Paid	11/9/2010
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $14.99/Share)	($)	($)
3 Directors	-	750	11,243	11,243
	Fees Earned or Paid	11/9/2010
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $19.99/Share)	($)	($)
3 Former Directors	-	656	13,113	13,113
	Fees Earned or Paid	4/29/2011
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $12.75/Share)	($)	($)
6 Directors	-	4,116	52,479	52,479

(p) Earnings Per Share

Basic earnings per share are computed by dividing income available for common stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The only potentially dilutive securities the Company has outstanding are stock options and warrants. The diluted weighted average shares outstanding shown on the Consolidated Statements of Income reflects the potential dilution as a result of these stock options and warrants as determined using the Treasury Stock Method. Stock options and warrants that are antidilutive are excluded from the calculation of diluted earnings per common share. Warrants expired in August 2011 and were not a factor in the calculation for that year. For 2010, 55,899 warrants were excluded as antidilutive (after adjustment for the April 2011 stock dividend (see Note (k)).

(q) 311 Transportation Agreement /Compressor Station

On January 11, 2010, the Company entered into a contract (311 Transportation Agreement) with a local gas producer that provides for the building of a compressor station as well as the transfer of 6" pipeline owned by the gas producer to the Company for nominal consideration. The contract also sets forth the terms, rates and condition of the transport of the local producer gas to the interstate pipeline system. On May 21, 2010, the 311 Transportation Agreement was revised to reflect a change in the projected gas delivery schedule and delivery volumes. The previously agreed to transportation rates did not change. The contract’s maximum daily delivery quantity remained the same. The schedule for attaining the maximum daily delivery quantity was altered to accommodate the project’s construction schedule. The Company bought the $11 million compressor station and $2.1 million pipeline from the local producer for two dollars. The local producer has the right to repurchase these facilities for two dollars in ten years. This transaction became effective on May 12, 2011, when the station began operations. Although the Company has $13.1 million in new plant, only two dollars was recognized in accordance with the Uniform System of Accounts (313.2) which states that in the case of gas plant contributed to the utility, gas plant accounts shall be charged only with such expenses, if any, incurred by the utility. The Company has recognized the tax impact of this transaction in May 2011 as a deferred tax of approximately $1 million (the New York current tax liability) that will be recoverable from customers over the life of the agreement. The Company expects no federal tax liability related to this gift because of bonus depreciation rules for the current year. This is the largest project undertaken by the Company in its history and will provide direct access to interstate markets for locally produced gas. The project will improve management of gas supply and has the potential to lower gas costs for customers throughout the southern tier of the state. The Company expects this agreement to have a significant positive impact on its cash flow and also positively impact earnings.

(r) Collective Bargaining Agreement

We had 52 employees as of September 30, 2011 and 50 as of September 30, 2010. Of this total, 46% are union labor working under an agreement effective until April 2, 2012. Negotiations for the new contract have not yet started. The Company anticipates that negotiations will begin in the second fiscal quarter of 2012.

(s) Rights Offering

The Company distributed one transferable subscription right for each ten shares of common stock to shareholders of record as of 5:00 pm on July 19, 2010. This right entitled the shareholder to purchase one share of our common stock at a cash exercise price of $18.00 per share. The rights were granted to the shareholders without additional charge to them and expired at 5:00 pm on August 27, 2010. We received $1,796,373, net of cost, with the exercise of 104,086 shares. The Company used the proceeds to help fund capital expenditures, the retirement of debt and future growth opportunities.

(t) Leatherstocking Gas Company, LLC

The Company, in a joint venture with Mirabito Holdings, Incorporated, formed a limited liability corporation (LLC) in November 2010 for the purpose of providing natural gas in areas of New York and Pennsylvania that currently do not have natural gas service. This new venture, Leatherstocking Gas Company, LLC, ("Leatherstocking") is currently moving forward on expansions to several areas in the northeast. The Company and Mirabito Holdings, Incorporated each owns 50% of the joint venture and each appoints three managers to operate the new company. The seventh manager is a neutral manager agreed to by the Company and Mirabito Holdings, Incorporated who is not an officer, director, shareholder or employee of either company. The current managers are Joseph P. Mirabito, John J. Mirabito and William Mirabito from Mirabito Holdings, Incorporated; Matthew J. Cook, Michael I. German and Russell S. Miller from the Company; and Carl T. Hayden as the neutral manager. Joseph P. Mirabito and William Mirabito are stockholders and current board members of the Company. There are no significant financial transactions to report and therefore no amounts to consolidate at September 30, 2011. Leatherstocking has received a franchise from the Village of Sidney, New York, and is in the process of seeking another half dozen franchises. Leatherstocking has met with potential customers and public officials, as well as attended public hearings, and believes there is significant interest in acquiring gas service. Leatherstocking received a franchise from the Town of Sidney on November 9, 2011. On November 23, 2011, Leatherstocking filed for several franchises in Susquehanna County, Pennsylvania. Leatherstocking received a new franchise area in Bainbridge, New York on December 13, 2011.

(u) Subsequent Events

From October 24, 2011 to October 27, 2011, and again from November 7, 2011 to November 9, 2011, the Company met with the NYPSC and other active parties in Case 11-G-0280 in Albany, New York, for settlement conferences. The purpose of the conferences was to settle some or all of the issues in the Company’s pending rate case. The parties reached an agreement in principle and are now working on a detailed settlement document, as well as finalizing agreement on specific issues. A Ruling on Schedule by the ALJ’s on December 1, 2011, calls for filing the final settlement agreement by January 13, 2012. Pursuant to NYPSC regulations governing the settlement process, no details regarding the settlement can be disclosed until the full document is publically filed.

Leatherstocking received a franchise from the Town of Sidney on November 9, 2011. On November 23, 2011, Leatherstocking filed for several franchises in Susquehanna County, Pennsylvania. Leatherstocking received a new franchise area in Bainbridge, New York on December 13, 2011.

On December 6, 2011, the Company and Mr. Barry signed an initial settlement agreement that terminated the two lawsuits. The Company views the outcome as favorable because it will allow the Company to reduce certain reserves and liabilities and it will end an expensive and distracting litigation. The Company anticipates a positive impact to net income during the first quarter of fiscal 2012 but does not have the necessary actuary data and other information at this time to know the exact effect.

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Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Sep. 30, 2010
Plant
Utility property, plant and equipment	$ 47,490,565	$ 43,785,340
Less: accumulated depreciation	(14,361,951)	(13,037,075)
Total plant utility and non-utility, net	33,128,614	30,748,265
Investments
Marketable securities available-for-sale at fair value	2,267,268	2,366,870
Current assets
Cash and cash equivalents	173,245	69,552
Customer accounts receivable, (net of allowance for uncollectible accounts of $46,080 and $41,390 respectively)	1,598,241	1,251,584
Gas stored underground, at average cost	2,832,932	2,696,395
Materials and supplies inventory	1,188,017	774,677
Prepaid expenses	258,015	967,038
Total current assets	6,050,450	5,759,246
Regulatory assets
Unrecovered gas costs	536,648	1,093,029
Deferred regulatory costs	1,207,028	1,052,427
Unamortized debt issuance cost (net of accumulated amortization of $443,854 and $397,071)	286,093	303,468
Deferred income taxes	1,308,298
Other	221,089	168,334
Total deferred debits and other assets	3,559,156	2,617,258
Total assets	45,005,488	41,491,639
Current liabilities
Current portion of long-term debt	945,063	971,417
Demand notes payable	750,000	1,250,000
Borrowings under lines-of-credit	4,178,784	5,140,649
Accounts payable	1,882,249	1,367,884
Accrued expenses	892,502	842,935
Customer deposits and accrued interest	1,034,319	1,083,068
Dividends declared	205,375	171,683
Deferred income taxes	147,779	359,254
Total current liabilities	10,036,071	11,186,890
Long-term debt, less current installments	11,534,801	8,656,394
Deferred credits and other liabilities
Deferred income taxes		31,035
Deferred compensation	1,849,019	1,938,106
Deferred pension costs & post-retirement benefits	6,622,459	5,823,219
Other	316,556	179,198
Total deferred credits and other liabilities	8,788,034	7,971,558
Common stockholders' equity
Common stock (common stock $5.00 par value per share). Authorized 3,500,000 shares; issued and outstanding 1,787,769 shares at September 30, 2011 and 1,146,454 shares at September 30, 2010	8,938,845	5,732,270
Other paid-in capital	7,382,167	8,130,264
Retained earnings	1,018,766	2,054,115
Accumulated other comprehensive loss	(2,693,196)	(2,239,852)
Total common stockholders' equity	14,646,582	13,676,797
Total liabilities and capitalization	$ 45,005,488	$ 41,491,639

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Consolidated Statements of Shareholders Equity (Parenthetical) (USD $)	12 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009
Statement of Stockholders' Equity [Abstract]
Change in unrealized gain on securities available for sale net, taxes	$ 59,969	$ 19,370	$ 13,124
Minimum pension liability net, taxes	224,833	199,230	1,405,712
The components of accumulated other comprehensive (loss) are as follows:
Net unrealized gain/(loss) on securities available for sale	(88,900)
Accumulated other comprehensive loss	$ (2,693,196)	$ (2,239,852)

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009
Cash flows from operating activities
Net income	$ 1,348,828	$ 1,641,623	$ 672,285
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,478,953	713,066	762,197
Unamortized debt issuance cost	46,782	33,851	29,271
Regulatory Amortizations	1,610,453	1,619,537	2,298,186
Stock issued for services and stock option expense	176,057	235,902	124,593
Pension adjustment	(321,993)	728,069	(1,942,095)
Loss (Gain) on sale of marketable securities	45,118	(126,466)	176,862
Deferred income taxes	(1,550,808)	1,472,093	(1,326,224)
Bad debt expense	185,506	219,468	146,773
(Increase) decrease in
Accounts receivable	(532,163)	(492,074)	(535,984)
Gas stored underground	(136,537)	(374,017)	2,868,181
Materials and supplies inventories	(413,340)	(124,634)	(96,006)
Prepaid expenses	709,023	628,391	(939,048)
Unrecovered gas costs	556,381	(223,756)	(960,728)
Deferred regulatory costs	(472,670)	(26,898)	(552,964)
Other	(52,755)	(93,641)	(8,244)
Increase (decrease) in
Accounts payable	514,365	89,373	(806,359)
Accrued expenses	49,567	(28,268)	(178,843)
Customer deposits and accrued interest	(48,749)	(40,118)	595,694
Deferred compensation	(89,087)	(82,667)	(160,439)
Deferred pension costs & post-retirement benefits	(493,144)	(1,618,042)	2,067,775
Other liabilities and deferred credits	171,050	125,611	(74,758)
Net cash provided by operating activities	2,780,837	4,276,403	2,160,125
Cash flows from investing activities
Purchase of securities available-for-sale	(2,174,041)	(1,552,126)	(1,562,639)
Sale of securities available-for-sale	2,097,174	1,576,686	1,504,664
Capital expenditures	(3,859,302)	(4,694,677)	(5,054,209)
Net cash used in investing activities	(3,936,169)	(4,670,117)	(5,112,184)
Cash flows from financing activities
Proceeds under lines-of-credit	16,110,235	15,744,398	17,523,521
Repayment of lines-of-credit	(17,072,100)	(17,360,309)	(17,089,935)
Debt issuance cost expense	(29,407)	(69,486)	(1,975)
Cash received from sale of stock	673,140	2,233,548	2,861,340
Dividends paid	(774,896)	(548,150)	(194,840)
Proceeds under short-term debt		750,000
Proceeds under long-term debt	3,952,296	1,150,732	1,010,965
Repayment of short-term debt	(500,000)	(500,000)
Repayment of long-term debt	(1,100,243)	(1,115,033)	(979,451)
Net cash provided by financing activities	1,259,025	285,700	3,129,625
Net increase (decrease) in cash	103,693	(108,014)	177,566
Cash and cash equivalents at beginning of year	69,552	177,566
Cash and cash equivalents at end of year	173,245	69,552	177,566
Cash paid during the period for
Interest	894,820	926,763	887,958
Income taxes	1,668,438	152,078	727,325
Non-cash investment activities-retirement of assets	$ 198,302	$ 225,506	$ 289,637

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2011	Sep. 30, 2010
Current assets
Allowance for uncollectible accounts	$ 46,080	$ 41,390
Regulatory assets
Accumulated amortization of debt issuance cost	$ 443,854	$ 397,071
Common stockholders' equity
Common stock, par value	$ 5.00	$ 5.00
Commn stock, authorized shares	3,500,000	3,500,000
Common stock, shares outstanding	1,787,769	1,146,454
Common stock, shares issued	1,787,769	1,146,454

XML

Document and Entity Information (USD $)	12 Months Ended
	Sep. 30, 2011	Dec. 01, 2011	Mar. 31, 2011
Document And Entity Information
Entity Registrant Name	CORNING NATURAL GAS CORP
Entity Central Index Key	0000024751
Document Type	10-K
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 16,358,498
Entity Common Stock, Shares Outstanding		1,823,967
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2011

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Condensed Consolidated Statements of Income (USD $)	12 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2009
Income Statement [Abstract]
Utility operating revenues	$ 22,827,862	$ 22,445,300	$ 23,697,031
Natural gas purchased	9,714,941	9,647,495	13,034,734
Gross margin	13,112,921	12,797,805	10,662,297
Cost and expense
Operating and maintenance expense	7,280,393	6,874,009	6,594,934
Taxes other than income taxes	1,914,658	1,673,868	1,521,906
Depreciation	1,478,953	713,066	762,197
Other deductions, net	216,271	144,360	120,442
Total costs and expenses	10,890,275	9,405,303	8,999,479
Utility operating income	2,222,646	3,392,502	1,662,818
Other income and (expense)
Interest expense	(897,437)	(925,999)	(905,658)
Non-utility expense	(9,570)	(27,570)	(12,041)
Investment income (expense)	181,542	120,641	(49,439)
Other income	33,129	6,809	139,998
Rental income	48,552	48,552	51,281
Net income from utility operations, before income tax	1,578,862	2,614,935	886,959
Income tax benefit (expense), current	54,139	(1,114,034)	1,555,010
Income tax benefit (expense), deferred	(284,173)	140,722	(1,769,684)
Total tax (expense)	(230,034)	(973,312)	(214,674)
Net income	1,348,828	1,641,623	672,285
Other comprehensive income (loss)	(453,344)	716,833	(1,916,829)
Total comprehensive income (loss)	$ 895,484	$ 2,358,456	$ (1,244,544)
Weighted average earnings per share
basic:	$ 0.77	$ 1.05	$ 0.53
diluted:	$ 0.76	$ 1.05	$ 0.52
Average shares outstanding - basic	1,746,198	1,562,576	1,280,285
Average shares outstanding - diluted	1,765,220	1,570,902	1,284,900

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Lines of Credit

12 Months Ended

Sep. 30, 2011

Lines Of Credit

Lines of Credit

(5) Lines of Credit

The Company had a line of credit with Community Bank, N.A. to borrow up to $8 million on a short-term basis. In March 2010 and again in February 2011, we renewed our line of credit with a limit of $7 million. Under this agreement, the aggregate borrowings at any one time under the revolving line may not exceed the sum of 100% of all eligible accounts receivable plus 100% of all gas inventory plus 50% of miscellaneous eligible inventories (material and supplies on the balance sheet) plus 100% of the value of the Rabbi Trust investment account (a trust to fund a deferred compensation plan for certain officers-see Note 7 to the Notes to Consolidated Financial Statements) up to the $7 million limit. Borrowings outstanding under this line were $4,178,784, $5,140,649 and $6,756,560 at September 30, 2011, 2010 and 2009, respectively. The maximum amount outstanding during the year ended September 30, 2011, 2010 and 2009 was $6,246,562, $7,437,118 and $6,877,870 respectively. September 3, 2009, due to market conditions, the interest rate formula was changed to the greater of 4% or 225 basis points above 30 days LIBOR. In February 2011, we negotiated the new rate formula as a fluctuating rate equal to the greater of 3.5% or the 30-day LIBOR plus 2.25%. The line of credit is payable on demand with an interest rate of 3.5% on September 30, 2011. As security for the Company’s line of credit, collateral assignments have been executed which assign to Community Bank, N.A. various rights in the investment trust account. In addition, Community Bank, N.A. has a purchase money interest in all of our natural gas purchases utilizing funds advanced by the bank under the line-of-credit agreement and all proceeds of sale of the gas to customers and related accounts receivable. The weighted average interest rates on outstanding borrowings during fiscal 2011, 2010 and 2009 were 3.78%, 4% and 2.98% respectively.

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Long-term Debt

12 Months Ended

Sep. 30, 2011

Long-term Debt, Unclassified [Abstract]

Long-term Debt

(4) Long-term Debt

The Company believes it is in compliance with all of our loan covenants as of September 30, 2011.

The fair market value of the Company’s long-term debt is estimated based on quoted market prices of similar issues having the same remaining maturities, redemption terms and credit ratings. Notes payable to banks are stated at cost, which approximates their value due to the short-term maturities of those financial instruments. Based on these criteria, the fair market value of long-term debt, including current portion, was as follows at September 30, 2011, 2010 and 2009:

	2011		2010	2009
Unsecured senior note - 7.9%, due serially with annual payments of $355,000 beginning on September 1, 2006 through 2016 and $795,000 due in 2017	$2,570,000		$2,925,000	$3,280,000
Term Loan - variable rate 1/2 point below prime, monthly
installments through August 2010	-		-	316,650
Note payable - 6.5% with monthly installments through 2013	5,050,408		5,487,679	5,821,654
Note payable - variable rate with 4.5% floor with monthly
installments through May 2015	928,249		1,018,363	-
M&T Bank - new truck loan	2,995		9,786	16,122
M&T Bank - excavator & radio equipment	6,066		17,285	27,686
M&T Bank - backhoe & skidsteer loader	21,835		46,493	69,353
M&T Bank - used truck loan	-		-	4,499
Community Bank - used trucks (5) loan	-		19,980	45,335
M&T Bank - used truck loan	6,854		8,902	10,813
M&T Bank - used truck loan	8,124		14,196	-
M&T Bank - vehicles loan	54,220		80,127	-
Note Payable - 5.76% with monthly installments through
November 2015	1,747,565		-	-
M&T Bank - used truck loan	9,252		-	-
Note Payable - variable rate with 4.25% floor, monthly
installments through November 2016	2,000,000		-	-
M&T Bank - new trucks loan	48,396		-	-
M&T Bank - used vehicle loan	11,089		-	-
M&T Bank - equipment loan	14,811		-	-
Total long-term debt	$12,479,864		$9,627,811	$9,592,112
Less current installments	945,063		971,417	918,696
Long-term debt less current installments	$11,534,801		$8,656,394	$8,673,416
The aggregate maturities of long-term debt for each of the five years subsequent to September 30, 2011 are as follows:
2012		$945,063
2013		$996,437
2014		$1,018,345
2015		$1,052,491
2016 and thereafter		$8,467,527
The estimated interest payments on the above debts are as follows:
2012		$734,603
2013		$664,666
2014		$578,851
2015		$491,257
2016		$401,223

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Stock Options

12 Months Ended

Sep. 30, 2011

Stock Options

Stock Options

(8) Stock Options and Warrants

Stock Options

On November 5, 2007, the Board of Directors granted stock options totaling 75,000 shares. 25,000 of the stock options vested immediately and 25,000 additional options vested on each of the 1^st and 2^nd anniversary of the grant date. These options expired on the fourth anniversary of the grant date, November 5, 2011. On September 23, 2008, the Board of Directors approved performance based stock options totaling 19,000 shares to be vested on the 1^st, 2^nd and 3^rd anniversaries of the grant date. The number of the options granted has been adjusted due to the stock dividend to 28,500 at a price of $11.33 per share and expire on September 23, 2013 (see Note (k) Dividends for additional information). No additional options were granted during 2009 and 2010. On December 14, 2010, the board of directors granted 9,000 compensatory stock options to certain of the Company’s executive officers at an exercise price of $19.25 per share. These options have been adjusted to 13,500 shares at a price of $12.83, are exercisable on or after December 15, 2011 and expire on the fourth anniversary of the grant date. No other options were issued for fiscal 2011. The number of shares and exercise price of each of the option awards are shown in the next two tables.

Management has valued the 2010 options at their date of vesting and 2011 options at their grant date utilizing the Black-Scholes Option Pricing Model. The following weighted average assumptions were utilized in the fair value calculations for options granted:

	2010	2010	2011
	Options @	Options @	Options @
	$10.00	$11.33	$12.83
Expected dividend yield	2.74%	3.16%	3.53%
Expected stock price volatility	32.82%	36.23%	36.31%
Risk-free interest rate	4.00%	4.00%	4.00%
Expected life of options in years	0.00	2.00	4.25

A summary of all stock option activity and information related to all options outstanding follows:

	2010
	Stock Options
			Weighted
	Number of	Weighted	Average
	Shares	Average	Remaining
	Remaining	Exercise	Contractual
	Options	Price	Term
Outstanding at October 1, 2009	126,000	$10.30
Options granted	-
Options exercised during year ended September 30, 2010	36,000	$10.00	1.17years
Options canceled during year ended September 30, 2010	-
Outstanding at September 30, 2010	90,000	$10.42	1.75 years
Exercisable at September 30, 2010	82,500	$10.34	1.63 years
	2011
	Stock Options
			Weighted
	Number of	Weighted	Average
	Shares	Average	Remaining
	Remaining	Exercise	Contractual
	Options	Price	Term
Outstanding at October 1, 2010	90,000	$10.42
Options granted	13,500	$12.83	4.25 years
Options exercised during year ended September 30, 2011	23,500	$10.00	.17 years
Options canceled during year ended September 30, 2011	-
Outstanding at September 30, 2011	80,000	$10.95	1.51 years
Exercisable at September 30, 2011	66,500	$10.57	.95 years

Warrants

During the third quarter of 2007 we conducted a rights offering pursuant to a May 2006 order of the NYPSC that required us to conduct an equity offering and make various capital investments. The rights offering provided holders of our common stock with the right to purchase, at the price of $16.00, one "investment unit" for each share of common stock held. Each investment unit consisted of one share of common stock and one four-year warrant to purchase .7 shares of our common stock at a price of $19.00. The rights offering resulted in warrants being issued for 211,842 shares. On July 1, 2009, we amended the warrant agreement to reduce the exercise price of the warrants to $15.00 a share from July 6, 2009 to August 5, 2009. After August 5, 2009, the exercise price returned to $19.00 a share. During the month in which the exercise price was reduced, warrants to purchase 185,756 shares were exercised, comprising 87.7% of the outstanding warrants. We received $2,786,340 in connection with the warrant exercises in 2009 which was used to support our business plan. No warrants were exercised in 2010. During fiscal 2011, the remaining available warrants were adjusted for the stock dividend (see Note (k) – Dividends for more information) to 55,899. Of that amount, warrants to purchase 34,582 shares were exercised or 88.4% of the remaining warrants. The balance expired on August 17, 2011. We received $438,140 from warrant exercises in 2011 which we used to help fund capital projects.

	2011
	Warrants
			Weighted
		Weighted	Average
	Number of	Average	Remaining
	Remaining	Exercise	Contractual
	Warrants	Price	Term
Outstanding at October 1, 2010	55,899	$12.67
Warrants granted	-
Warrants exercised during year ended September 30, 2011	49,403	$12.67
Warrants canceled during year ended September 30, 2011	6,496	$12.67
Outstanding at September 30, 2011	0
	2010
	Warrants
			Weighted
		Weighted	Average
	Number of	Average	Remaining
	Remaining	Exercise	Contractual
	Warrants	Price	Term
Outstanding at October 1, 2009	55,899	$12.67
Warrants granted	-
Warrants exercised during year ended September 30, 2010	-
Warrants canceled during year ended September 30, 2010	-
Outstanding at September 30, 2010	55,899	$12.67	.92 years

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Income Taxes

12 Months Ended

Sep. 30, 2011

Income Taxes

Income Taxes

(6) Income Taxes

Income tax expense for the years ended September 30 is as follows:
	2011	2010	2009
Current	($54,139)	$1,114,034	($1,555,010)
Deferred	284,173	(140,722)	1,769,684
Total	$230,034	$973,312	$214,674
Actual income tax expense differs from the expected tax expense (computed by applying the federal
corporate tax rate of 35% and state tax rate of 7.1% to income before income tax expense for 2009, and
applying the federal tax rate of 34% and state tax rate of 7.1% for 2010 and 2011) as follows:
	2011	2010	2009
Expected federal tax expense	$536,813	$889,078	$310,436
State tax expense (net of federal)	112,099	185,660	62,974
Net operating loss carryforwards	(468,755)	(2,783)	(189,228)
Other, net	49,877	(98,643)	30,492
Actual tax expense	$230,034	$973,312	$214,674

Our effective tax rate for the period ending September 30, 2011 was 14.6% instead of the expected rate of 41.1% (34% federal provision and 7.1% New York State provision) due mainly to bonus depreciation on the Compressor Station, an asset not on the Company’s Balance Sheet due to regulatory accounting (see Note (q) 311 Transportation Agreement/Compressor Station for more information). Our effective tax rate for the period ending September 30, 2010 was 37.2% instead of the expected rate of 41.1% (34% federal provision and 7.1% New York State provision) due to bonus depreciation and the adjustment back to a 34% federal provision for the prior fiscal year. Our effective tax rate for the period ending September 30, 2009 was 24.2% instead of the expected 42.1% (we were recognizing a 35% federal provision and 7.1% New York State provision) primarily due to bonus depreciation allowed this year. Taxes paid have also been affected by the amount of net operating loss (NOL) carryforward on both federal and state returns and have positively affected our effective tax rates.

The tax effects of temporary differences that result in deferred income tax assets and liabilities at September 30 are as follows:

	2011	2010	2009
Deferred income tax assets:
Unbilled revenue	$-	$42,187	$44,892
Deferred compensation reserve	810,617	900,339	989,804
Post-retirement benefit obligations	317,329	339,462	637,193
Comprehensive income	2,367,781	2,473,850	2,562,651
Estimated tax payments	1,332,039	26,888	-
Inventories	-	-	56,705
Prior period tax reconciliations (1)(2)(3)	687,570	468,078	1,183,158
Other	855,783	603,756	786,980
Total deferred income tax assets	6,371,119	4,854,560	6,261,383
Deferred income tax liabilities:
Property, plant and equipment, principally due to
differences in depreciation	2,591,119	2,561,750	2,585,440
Pension benefit obligations	1,290,001	1,057,256	1,244,973
Unbilled revenue	39,893	-	-
Inventories	60,795	64,277	-
Deferred rate expense and allocations	583,994	645,196	615,506
Deficiency of gas adjustment clause revenues billed	236,923	373,905	357,302
Other	407,875	542,465	376,358
Total deferred income tax liabilities	5,210,600	5,244,849	5,179,579
Net deferred income tax (assets) liabilities	($1,160,519)	$390,289	($1,081,804)
(1) In 2009, this amount is the total of $2,054,306 for tax depreciation (primarily bonus depreciation) less
$681,920 for deferred taxes and $189,228 for prior period accrued income taxes.
(2) In 2010, this amount is the total of $601,407 for tax depreciation less $133,329 for deferred taxes
from prior period reconciliation.
(3) In 2011, this amount is the total of $224,073 for tax depreciation less $5,258 for deferred taxes
plus $468,755 for prior period accrued income taxes.

The Company has net operating loss carry forwards available of approximately $12,000,000 as of September 30, 2011 that begin to expire at the end of 2019.

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Pension and Other Post-retirement Benefit Plans

12 Months Ended

Sep. 30, 2011

Pension And Other Post-Retirement Benefit Plans

Pension and Other Post-retirement Benefit Plans

(7) Pension and Other Post-retirement Benefit Plans

In 1997, the Company established a trust (the Rabbi Trust) to fund a deferred compensation plan for certain officers. The fair market value of assets in the trust was $2,216,083 (plus $51,185 in additional stock), $2,315,685 (plus $51,185 in additional stock) and $2,225,015 (plus $51,185 in additional stock) at September 30, 2011, 2010 and 2009, respectively, and the plan liability, which is labeled as deferred compensation on the balance sheet, was $1,849,019, $1,938,106 and $2,020,773 at September 30, 2011, 2010 and 2009, respectively. The assets of the trust are available to general creditors in the event of insolvency.

The Company has defined benefit pension plans covering substantially all of its employees. The benefits are based on years of service and the employee’s highest average compensation during a specified period. The Company makes annual contributions to the plans equal to amounts determined in accordance with the funding requirements of the Employee Retirement Security Act of 1974. Contributions are intended to provide for benefits attributed for service to date, and those expected to be earned in the future.

In addition to the Company’s defined benefit pension plans, the Company offers post-retirement benefits comprised of medical and life coverages to its employees who meet certain age and service criteria. Currently, the retirees under age 65 pay 60% of their health care premium until Medicare benefits commence at age 65. After age 65, Medicare supplemental coverage is offered with Company payment of the premium. For union participants who retire on or after September 2, 1992, the Company cost for post-retirement benefits is contractually limited and will not exceed $150 per month. This contract is in effect until April 2, 2012. The monthly benefit for all non-union employees, regardless of retirement date, shall not exceed $150. In addition, the Company offers limited life insurance coverage to active employees and retirees. The post-retirement benefit plan is not funded. The Company accrues the cost of providing post-retirement benefits during the active service period of the employee.

The following table shows reconciliations of the Company’s pension and post-retirement plan benefits as of September 30:

		Pension Benefits					Post-retirement Benefits
		2011		2010		2009	2011	2010	2009
Change in benefit obligations:
Benefit obligation at beginning of year		$15,199,060		$14,900,272		$12,481,252	$825,942	$1,513,523	$1,349,816
Service cost		333,060		333,425		336,356	13,819	26,229	49,846
Interest cost		776,058		797,680		1,014,783	41,920	48,987	110,153
Participant contributions		-		-		-	122,000	113,000	54,387
Actuarial (gain) loss		338,403		(75,605)		1,979,107	30,964	(431,212)	92,312
Benefits paid		(788,754)		(756,712)		(911,226)	(177,000)	(162,000)	(142,991)
Curtailments		-		-		-	-	(282,585)	-
Benefit obligation at end of year		15,857,827		15,199,060		14,900,272	857,645	825,942	1,513,523
Change in plan assets:
Fair value of plan assets at beginning of year		9,179,959		8,813,215		9,863,486	-	-	-
Actual return on plan assets		19,398		699,286		(668,862)	-	-	-
Company contributions		1,047,816		424,170		529,817	55,000	49,000	88,604
Participant contributions		-		-		-	122,000	113,000	54,387
Benefits paid		(788,754)		(756,712)		(911,226)	(177,000)	(162,000)	(142,991)
Fair value of plan assets at end of year		9,458,419		9,179,959		8,813,215	-	-	-
Funded status		(6,399,408)		(6,019,101)		(6,087,057)	(857,645)	(825,942)	(1,513,523)
Unrecognized net actuarial loss / (gain)		4,133,593		3,900,917		4,901,108	(293,680)	(360,716)	41,837
Unrecognized PSC adjustment		-		-		-	-	-	-
Unrecognized prior service cost		(60,598)		(77,403)		(94,208)	-	-	-
Unrecognized net transition asset (obligation)		-		-		-	(94,782)	(106,473)	165,680
Additional minimum liability		-		-		-	-	-	-
(Accrued) prepaid benefit cost		(2,205,217)		(2,040,781)		(1,091,741)	(1,246,107)	(1,293,131)	(1,306,006)
Accrued contribution		-		-		-	-	-	-
Amounts recognized in the Balance Sheets consist of:
(Accrued)/prepaid pension cost as of beginning of fiscal year		(2,040,781)		(1,091,741)		(662,355)	(1,293,131)	(1,306,006)	(1,167,419)
Pension (cost) income		(1,043,758)		(1,212,252)		(1,373,210)	(5,976)	(36,125)	(227,191)
Contributions		1,047,816		424,170		503,808	-	-	-
Change in receivable contribution		(168,494)		(160,958)		440,016	-	-	-
Net benefits paid		-		-		-	53,000	49,000	88,604
Change in additional minimum liability		-		-		-	-	-	-
(Accrued)/prepaid pension cost as of end of fiscal year		(2,205,217)		(2,040,781)		(1,091,741)	(1,246,107)	(1,293,131)	(1,306,006)
Weighted average assumptions used to determine benefit obligation at September 30,
Discount rate	5.00%		5.25%		5.50%
Expected return on assets	8.00%		8.00%		8.00%
Rate of compensation increase	2.00%		3.00%		4.50%
Measurement Date	10/1/2011		10/10/2010		10/1/2009

For measurement purposes, a 3.12% annual rate of increase in the per capita cost of covered benefits (health care cost trend rate) was assumed for 2011. The rate is assumed to increase by 6.5% each year thereafter. A 1% increase in the actual health care cost trend would result in approximately a 4.1% increase in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 4.1% increase in the accumulated post-retirement benefit obligation. A 1% decrease in the actual health care cost trend would result in approximately a 3.6% decrease in the service and interest cost components of the annual net periodic post-retirement benefit cost and a 3.6% decrease in the accumulated post-retirement benefit obligation.

	Pension Benefits			Post-retirement Benefits
	2011	2010	2009	2011	2010	2009
Components of net period benefit cost (benefit):
Service cost	333,060	333,425	269,085	13,819	26,229	39,256
Interest cost	776,058	797,680	811,826	41,920	48,987	88,729
Expected return on plan assets	(743,037)	(692,297)	(784,626)	-	-	-
Amortization of prior service	16,805	16,805	19,030	(11,691)	(10,432)	-
Amortization of transition obligation	-	-	-	-	-	43,320
Amortization of PSC adjustment	-	-	-	-	-	-
FAS88 recognition - loss on curtailment	-	-	-	-	-	-
Amortization of unrecognized actuarial loss (gain)	829,366	917,597	431,240	(36,072)	(28,659)	(3,743)
Net periodic benefit cost (benefit)	1,212,252	1,373,210	746,555	7,976	36,125	167,562
Amounts recognized in the balance sheet consists of:
Prepaid (accrued) benefit liability	(6,399,408)	(6,019,101)	(6,087,057)	(857,645)	(825,942)	(1,513,523)
Prior period adjustment	-	-	-	-	-	-
Regulatory adjustments	-	-	-	-	-	-
Change in receivable contribution	-	-	-	-	-	-
Net amount recognized at end of period	(6,399,408)	(6,019,101)	(6,087,057)	(857,645)	(825,942)	(1,513,523)
Weighted average assumptions used to determine net
period cost at September 30:
Discount rate	5.00%	5.25%	5.50%	5.00%	5.25%	5.50%
Expected return on assets	8.00%	8.00%	8.00%	8.00%	8.00%	8.00%

The estimated pension plan payments are as follows:
2012	$862,000
2013	$873,000
2014	$907,000
2015	$942,000
2016	$1,060,000

The expected returns on plan assets of the Retirement Plan and Post-Retirement Plan are applied to the market-related value of plan assets of the respective plans. For the Retirement Plan, the market-related value of assets recognizes the performance of its portfolio over five years and reduces the effects of short-term market fluctuations. The market-related value of Post-Retirement Plan assets is set equal to market value.

For ratemaking and financial statement purposes, pension expense represents the amount approved by the PSC in the Company’s most recently approved rate case. Pension expense (benefit) for ratemaking and financial statement purposes was approximately $1,285,000, $1,190,949 and $513,558 for the years ended September 30, 2011, 2010 and 2009 respectively. The difference between the pension expense (benefit) for ratemaking and financial statement purposes, and the amount computed above has been deferred and is not included in the prepaid pension cost noted above. Such balances equal $661,786, $1,040,618 and $1,509,957 as of September 30, 2011, 2010 and 2009 respectively.

The NYPSC has allowed the Company to recover incremental cost associated with post-retirement benefits through rates on a current basis. Due to the timing differences between the Company’s rate case filings and financial reporting period, a regulatory receivable (liability) of $172,354, $142,214 and $90,075 has been recognized at September 30, 2011, 2010 and 2009 respectively.

The Company also maintains the Corning Natural Gas Corporation Employee Savings Plan (the "Savings Plan"). All employees of the Company who work for more than 1,000 hours per year and who have completed one year of service may enroll in the Savings Plan at the beginning of each calendar quarter. Under the Savings Plan, participants may contribute up to 50% of their wages. For all employees, the Company will match one-half of the participant’s contribution up to a total of 50% of the participant’s contribution up to a total of 6% of the participant’s wages. The plan is subject to the federal limitation. The Company contribution to the plan was $75,963 in 2011, $66,969 in 2010 and $64,243 in 2009.

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Commitments

12 Months Ended

Sep. 30, 2011

Commitments

Commitments

(9) Commitments

The Company is a local distribution company and has contracted for gas supply from various sources to provide the commodity to the city gates. The Company maintains storage capacity of approximately 736,000 Dth. In 2011 we entered in to an asset management agreement with ConocoPhillips and purchased $2.8 million of gas by the end of September 2011 that was placed into storage. As a result of these actions, the Company anticipates that it will have sufficient gas to supply its customers for the 2011-2012 winter season.

The Company has secured the NYPSC required fixed price and storage gas supply for the winter season and is managing its gas storage and gas contracts to assure that the Company follows its gas supply and acquisition plan. The gas supply plan is a formal document that defines how we acquire natural gas to supply our customers. The plan is submitted to the NYPSC every year and adherence to the plan is a regulatory mandate. Assuming no extraordinary conditions for the winter season, gas supply, flowing and storage will be adequate to serve our, approximately 14,700 customers.

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Consolidated Statements of Shareholders Equity (USD $)	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total
Beginning balance at Sep. 30, 2008	$ 4,072,750	$ 4,207,754	$ 609,665	$ (1,039,856)	$ 7,850,313
Beginning balance, shares at Sep. 30, 2008	814,550
Issuance of common stock & warrants	980,485	2,131,916			3,112,401
Issuance of common stock & warrants, shares	196,097
Dividends declared and paid		(321,308)			(321,308)
Comprehensive income:
Change in unrealized gain on securities available for sale, net				25,266	25,266
Minimum pension liability, net				(1,942,095)	(1,942,095)
Net income			672,285		672,285
Total comprehensive income					(1,244,544)
Ending balance at Sep. 30, 2009	5,053,235	6,018,362	1,281,950	(2,956,685)	9,396,862
Ending balance, shares at Sep. 30, 2009	1,010,647
Issuance of common stock & warrants	679,035	1,790,594			2,469,629
Issuance of common stock & warrants, shares	135,807
Dividends declared and paid		321,308	(869,458)		(548,150)
Comprehensive income:
Change in unrealized gain on securities available for sale, net				37,810	37,810
Minimum pension liability, net				679,023	679,023
Net income			1,641,623		1,641,623
Total comprehensive income					2,358,456
Ending balance at Sep. 30, 2010	5,732,270	8,130,264	2,054,115	(2,239,852)	13,676,797
Ending balance, shares at Sep. 30, 2010	1,146,454
Issuance of common stock & warrants	3,206,575	(748,097)			2,458,478
Issuance of common stock & warrants, shares	641,315		(2,384,177)		(2,384,177)
Comprehensive income:
Change in unrealized gain on securities available for sale, net				(131,351)	(131,351)
Minimum pension liability, net				(321,993)	(321,993)
Net income			1,348,828		1,348,828
Total comprehensive income					895,484
Ending balance at Sep. 30, 2011	$ 8,938,845	$ 7,382,167	$ 1,018,766	$ (2,693,196)	$ 14,646,582
Ending balance, shares at Sep. 30, 2011	1,787,769

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Regulatory Matters

12 Months Ended

Sep. 30, 2011

Regulatory Matters

Regulatory Matters

(3) Regulatory Matters

Certain costs are deferred and recognized as expenses when they are reflected in rates and recovered from customers as permitted by FASB ASC 980 (formerly SFAS No. 71). These costs are shown as deferred debits and other assets. Such costs arise from the traditional cost-of-service rate setting approach whereby all prudently incurred costs are generally recoverable through rates. Deferral of these costs is appropriate while the Company’s rates are regulated under a cost-of-service approach.

As a regulated utility, the Company deferred certain costs for future recovery. In a purely competitive environment, such costs might have been currently expensed. Accordingly, if the Company’s rate setting were changed from a cost-of-service approach and the Company were no longer allowed to defer these costs under FASB ASC 980 (formerly SFAS No. 71), certain of these assets might not be fully recoverable. However, the Company cannot predict the impact, if any, of competition and continues to operate in a cost-of-service based regulatory environment. Accordingly, the Company believes that accounting under FASB ASC 980 is still appropriate.

Below is a summary of the Company’s regulatory assets as of September 30, 2011, 2010 and 2009:

	2011	2010	2009
Deferred Debits - accounting for income taxes
Deferred Regulatory costs	1,207,028	1,052,427	1,323,824
Deferred Unrecovered gas costs	536,648	1,093,029	869,273
Total Regulatory Assets	1,743,676	2,145,456	2,193,097

Unrecovered gas costs. These costs arise from an annual reconciliation of certain gas revenue and costs (as described in Note 1) and are recoverable in customer rates in the year following the reconciliation.

The Company expects that regulatory assets other than deferred unrecovered gas costs will be fully recoverable from customers by the end of its next rate case.

Although the Company recovers the cost of its regulatory assets, it does not earn a return on them.