SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934




For Quarter Ended June 30, 2000                   Commission file number 0-10697



                            DORCHESTER HUGOTON, LTD.
             (Exact name of registrant as specified in its charter)




              Texas                                     75-1829064
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 Incorporation or organization)



        1919 S. Shiloh Road, Suite 600 - LB 48, Garland, Texas 75042-8234
               (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (972) 864-8610


                                      None
                  Former name, former address and former fiscal
                       year, if changed since last report


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No

     As of July 31, 2000,  10,744,380  Depositary  Receipts for Units of Limited
Partnership Interest were outstanding.


<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                          QUARTERLY REPORT ON FORM 10-Q

                                  June 30, 2000


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

          Condensed Balance Sheets as of June 30, 2000 (Unaudited)
          and December 31, 1999

          Condensed Statements of Earnings for the Three and Six
          Months Ended June 30, 2000 and 1999 (Unaudited)

          Statements of Comprehensive Income for the Three and Six
          Months Ended June 30, 2000 and 1999 (Unaudited)

          Condensed Statements of Cash Flows for the Six Months Ended
          June 30, 2000 and 1999 (Unaudited)

          Notes to Condensed Financial Statements (Unaudited)


  Item 2. Management's Discussion and Analysis of Financial Condition and
          Results of Operations



PART II.  OTHER INFORMATION

  Item 1. Legal Proceedings

  Item 5. Other Information

  Item 6. Exhibits and Reports on Form 8-K



SIGNATURES



<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 1
                            CONDENSED BALANCE SHEETS
                             (Dollars in Thousands)
                                                           June 30,   Dec. 31,
                                                             2000       1999
                                                           --------   --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents .......................      $  8,014    $ 7,017
    Restricted cash ..................................          398        390
    Investments - available for sale .................        5,024      5,156
    Accounts receivable, net .........................        3,041      1,555
    Prepaid expenses and other current assets ........          209        141
                                                            -------    -------
      Total current assets ...........................       16,686     14,259
                                                            -------    -------

Property and equipment - at cost .....................       29,307     29,203
    Less depreciation, depletion and amortization ....      (16,171)   (15,297)
                                                            -------   --------
      Net property and equipment .....................       13,136     13,906
                                                            -------   --------

Total assets .........................................      $29,822    $28,165
                                                            =======    =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities ...      $   974    $   252
    Production and property taxes payable or accrued .          705        630
    Royalties and production payment payable .........          843        889
    Distributions payable to Unitholders .............        1,956      1,956
                                                            -------    -------
      Total current liabilities ......................        4,478      3,727

Long-term debt .......................................          100        100
                                                            -------    -------
      Total liabilities ..............................        4,578      3,827
                                                            -------    -------
Commitments and contingencies (Note 2)

Partnership capital:
    General partners .................................          150        140
    Unitholders ......................................       22,587     21,559
    Accumulated other comprehensive income ...........        2,507      2,639
                                                            -------    -------
      Total partnership capital ......................       25,244     24,338
                                                            -------    -------

Total liabilities and partnership capital ............      $29,822    $28,165
                                                            =======    =======
                     The accompanying condensed notes are an
                   integral part of these financial statements.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                        CONDENSED STATEMENTS OF EARNINGS
                             (Dollars in Thousands)
                                   (Unaudited)



                                       Three Months Ended      Six Months Ended
                                             June 30,              June 30,
                                       ------------------      ----------------
                                         2000       1999         2000     1999
                                       --------   -------      -------  -------

Net operating revenues:
     Natural gas sales .............   $ 5,811    $ 3,627      $10,129  $ 6,780
     Other .........................        58         46          108       92
     Production payment (ORRI) .....      (297)      (165)        (504)    (300)
                                       -------    -------      -------  -------
Total net operating revenues .......     5,572      3,508        9,733    6,572
                                       -------    -------      -------  -------
Costs and expenses:
    Operating, including prod. taxes     1,035        955        1,951    1,743
    Depletion, depreciation & amort.       442        463          891      950
    General and administrative .....       177        133          317      269
    Management fees ................       140        119          266      234
    Interest .......................         9          9           19       18
    Other (income) expense, net ....       366        (60)         248     (133)
                                       -------    -------      -------  -------
Total costs and expenses ...........     2,169      1,619        3,692    3,081
                                       -------    -------      -------  -------
Net earnings .......................   $ 3,403    $ 1,889      $ 6,041  $ 3,491
                                       =======    =======      =======  =======
Net earnings per Unit (in dollars) .   $  0.32    $  0.17      $  0.56  $  0.32
                                       =======    =======      =======  =======

                       STATEMENTS OF COMPREHENSIVE INCOME
                             (Dollars In Thousands)
                                   (Unaudited)


Net earnings .......................   $ 3,403    $ 1,889      $ 6,041  $ 3,491
Unrealized holding gain (loss) on
     available for sale securities .        44        420         (132)     256
                                       --------   -------      -------  -------
Comprehensive income ...............   $ 3,447    $ 2,309      $ 5,909  $ 3,747
                                       ========   =======      =======  =======

                     The accompanying condensed notes are an
                  integral part of these financial statements.

<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)


                       CONDENSED STATEMENTS OF CASH FLOWS
                            (Dollars in Thousands)
                                  (Unaudited)

                                                             Six Months Ended
                                                                 June 30,
                                                           --------------------
                                                             2000         1999
                                                           -------      -------

Cash flows provided by operating activities ..........     $ 6,107      $ 4,299
                                                           -------      -------
Cash flows used in investing activities:
    Purchases of prop. & equipment ...................        (129)         (86)
    Cash received on sale of other property and equip.          11          -0-
                                                           -------      -------
Cash flows used in investing activities ..............        (118)         (86)
                                                           -------      -------
Cash flows used in financing activities:
    Distributions paid to Unitholders ................      (4,992)      (3,908)
                                                           -------      -------
Cash flows used in financing activities ..............      (4,992)      (3,908)
                                                           -------      -------

Increase in cash and cash equivalents ................         997          305
Cash and cash equivalents at January 1, ..............       7,017        4,167
                                                           -------      -------
Cash and cash equivalents at June 30, ................     $ 8,014      $ 4,472
                                                           =======      =======












                     The accompanying condensed notes are an
                  integral part of these financial statements.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

1.   The condensed financial statements reflect all adjustments (consisting only
     of  normal  and  recurring   adjustments)  that  are,  in  the  opinion  of
     management, necessary for a fair presentation of Dorchester Hugoton, Ltd.'s
     (the  "Partnership's")  financial  position and  operating  results for the
     interim period.  Interim period results are not  necessarily  indicative of
     the results for the calendar year. Please refer to Management's  Discussion
     and  Analysis  of  Financial   Condition  and  Results  of  Operations  for
     additional information.  Per-Unit information is calculated by dividing the
     99% interest owned by Unitholders by the 10,744,380 Units outstanding.

2.   Through 1998 the Partnership  recorded  $450,000  (which  included  related
     interest)  towards a  request  from  Panhandle  Eastern  Pipe Line  Company
     ("PEPL")  for  refund  of  Kansas  tax   reimbursements   received  by  the
     Partnership  during the years 1983 to 1987.  These charges  resulted from a
     ruling by the United  States Court of Appeals for the District of Columbia,
     which  overruled  a  previous  order  by  the  Federal  Energy   Regulatory
     Commission.  On March 9,  1998  $151,757  was paid to PEPL.  An  additional
     $366,633, which is still awaiting possible regulatory/judicial/legislative/
     settlement  action,  was placed into an escrow  account.  On March 2, 1999,
     $2,840 was released from escrow to PEPL. At June 30, 2000, the value of the
     escrow is approximately  $398,000.  The escrowed funds include amounts that
     could possibly be waived,  recovered or recoverable  from others,  of which
     $34,000 has been recorded as an allowance for bad debt on the Partnership's
     books in the event it is not waived and deemed uncollectible.

     The  Partnership  received a notice and demand  from the  Internal  Revenue
     Service ("IRS") assessing a penalty payment of $100 per Partnership K-1, or
     $446,100,  excluding  interest.  The IRS penalty  resulted  from a clerical
     error  in   requesting   an  automatic   extension  of  time  to  file  the
     Partnership's  federal  income tax  return.  Although  at this time no such
     notices have been received from the various state taxing  authorities  with
     which the  Partnership  is  required  to file  income  tax  returns,  it is
     possible  that some of those states may later assess a similar  penalty due
     to the  Partnership's  failure to secure an  extension  to file the federal
     income tax return.  An  estimated  expense of $500,000  was recorded on the
     Partnership's  books  during  June 2000.  All federal and state tax returns
     have been  filed and all  Unitholders  timely  received  their K-1 from the
     Partnership.  The  Partnership  is  contesting  its  liability  for the IRS
     penalty and will consider contesting any state penalties assessed.

     The  Partnership  is involved in a few other  legal  and/or  administrative
     proceedings  arising in the ordinary  course of its gas  business,  none of
     which have predictable  outcomes and none of which are believed to have any
     significant effect on financial position or operating results.

3.   Since 1994 the  Partnership  has maintained an unsecured  revolving  credit
     facility for $15,000,000 (the  "Agreement")  with Bank One, Texas, N.A. The
     Agreement  has a  current  borrowing  base  of  $6,000,000,  which  will be
     re-evaluated by Bank One at least semi-annually.  If, on any such date, the
     aggregate  amount of  outstanding  loans and  letters of credit  exceed the
     current  borrowing  base, the  Partnership is required to repay the excess.
     This credit  facility  covers both cash  advances and any letters of credit
     that the Partnership may need, with interest being charged at the base rate
     for Bank One, which was 9 1/2% on July 31, 2000. All amounts borrowed under
     this  facility will become due and payable on July 31, 2001. As of July 31,
     2000,  letters of credit  totaling  $25,000  were  issued  under the credit
     facility and the amount borrowed was $100,000.  The weighted average amount
     borrowed under the credit  facility was $100,000  during the second quarter
     of 2000;  $100,000 is the minimum borrowing level necessary to maintain the
     credit facility.
<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Net cash flows from operating  activities  during the three and six months ended
June 30,  2000  were  $2,973,000  and  $6,107,000  compared  to  $1,579,000  and
$4,299,000 for the same periods of 1999.  Second quarter net earnings were $0.32
per Unit  compared  to $0.17  per Unit in 1999.  Operating  cash  flows  and net
earnings were higher during 2000 primarily as a result of  significantly  higher
natural gas market prices  compared to the same period last year as shown in the
table below.

The Partnership has available a $15,000,000  unsecured revolving credit facility
with a current borrowing base of $6,000,000.  Please see Note 3 to the financial
statements  for  additional  information.  Cash and temporary  cash  investments
totaled $8,014,000 on June 30, 2000 compared to $7,017,000 on December 31, 1999.
On  March  15,  2000 a  special  distribution  of  $0.10  per  Unit  was paid to
Unitholders  of record on February 29, 2000. On April 14, 2000 and July 14, 2000
the Partnership  paid  distributions of $0.18 per Unit for each calendar quarter
of 2000. The total of the three distributions was approximately $4,992,000.

In connection with the Oklahoma  properties,  in May 1999 the  Partnership  paid
approximately  $730,000 in production  payments for the year ended  February 29,
2000; an additional  $338,000 has been accrued through June,  2000. As stated in
Note 2 to the Financial  Statements,  an accrual of  approximately  $500,000 has
been recorded to  miscellaneous  expense during June 2000 as a possible  penalty
payment for a clerical error regarding tax return extensions.

The  Partnership's  portion  of gas sales  volumes  (not  reduced  for  Oklahoma
production payment) and weighted average sales prices were:

                                  Three Months Ended           Six Months Ended
                               ----------------------------    -----------------
                                   June 30,                         June 30,
                               ----------------     Mar. 31,   -----------------
                                2000       1999       2000      2000       1999
Sales Volumes - MMCF:          -----      -----      -----     -----      -----
   Oklahoma ...............    1,374      1,334      1,392     2,766      2,749
   Kansas .................      282        336        291       573        684
                               -----      -----      -----     -----      -----
Total MMCF ................    1,656      1,670      1,683     3,339      3,433
                               =====      =====      =====     =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma ...............    $3.50      $2.15      $2.53     $3.01      $1.96
   Kansas .................     3.58       2.26       2.72      3.14       2.05
Overall Weighted Avg - $/MCF   $3.51      $2.17      $2.57     $3.03      $1.97

Oklahoma gas sales volumes were essentially  unchanged during the second quarter
2000  compared to the second  quarter of 1999 and the previous  quarter.  Kansas
natural gas sales volumes were lower during the second  quarter  compared to the
same quarter of 1999 and the previous  quarter as a result of natural  reservoir
decline typical of all producers in that area.


<PAGE>
                            DORCHESTER HUGOTON, LTD.
                         (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)



Since the first quarter of 2000, the Partnership has fracture treated  (creating
cracks in the  formation  to assist gas flow from the  producing  zones into the
well  bore) six wells in  Oklahoma.  Of the six wells the  highest  increase  in
volume  was  from  100 MCF per  day to 318  MCF  per day and the  lowest  volume
increase  was from 120 MCF per day to 170 MCF per day while the highest  shut-in
pressure  increase was from 39 psig to 118.3 psig and the least shut-in pressure
increase was from 31.3 psig to 37.5 psig.  Increased pressure and volume usually
results in increased reserves.  The Partnership has fracture treated seven wells
during  2000 and plans to  continue  fracture  treatments  during the year.  The
Partnership's Fort Riley well production  continues to vary around 60-65 MCF per
day with about 10 bbls of water per week.

As discussed in the 1999 Annual Report on Form 10-K,  the  Partnership is active
in  supporting  its views  regarding  possible  Oklahoma  regulatory/legislative
action on infill drilling and in monitoring activities resulting from removal of
production quantity  restrictions during 1998 in the Guymon-Hugoton  field. Both
infill  drilling and removal of  production  limits could  require  considerable
capital   expenditures.   The  outcome  and  the  cost  of  such  activities  is
unpredictable.  No  additional  compression  has been  installed by operators on
adjoining   acreage   resulting  from  the  relaxed   production   rules.   Such
installations  by  others  could  require   Partnership   expenditures  to  stay
competitive  with  adjoining  operators.  The  Partnership,  together with other
producers,  is currently seeking Kansas's regulatory  permission to employ field
compressors to operate the wells at a vacuum. Some producers oppose the proposal
and neither the outcome nor the possible effect upon allowable production volume
is predictable.

The  Partnership  is continuing to monitor the activity on nearby acreage in the
Council  Grove  formation.  At  present  15 wells  have been  drilled  by others
including one well that has been recompleted in another  formation  resulting in
14 wells in the Council Grove. The Partnership's  ownership includes the Council
Grove formation underlying most of its Oklahoma acreage. It is not known if such
monitoring  will  result in any plans by the  Partnership  to  attempt a Council
Grove well; previous preliminary reviews yielded unfavorable  forecasts.  Recent
results by others have varied from 28 MCF per day to 514 MCF per day. Production
volumes in  subsequent  months have varied  with most wells  showing  decreases.
Current total  production from the three Council Grove wells owned by others but
located on the  Partnership's  acreage is  approximately 45 MCFD, 19 MCFD and 11
MCFD.  The  Partnership  has a minor  overriding  royalty  interest in the three
wells.

As previously reported,  the accounting firm that has, for years,  processed the
Partnership's  4,000 to 5,000  individualized  K-1's previously notified us that
their current computer software, while fully able to process 1999 tax returns in
early  2000,  would not be able to process  Year 2000 tax returns in early 2001.
Subsequently, the Partnership was notified during the third quarter of 1999 that
the accounting firm had begun  developing new software and acquired another firm
that had a Year 2000 compliant product.  However,  conversion of the data to the
new software will still be necessary.  Consequently, the Partnership believes it
could incur estimated total expenditures of $150,000 to $200,000 during calendar
year 2000 and 2001 on K-1  preparation  and/or  conversion  costs in addition to

<PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)
PART I
Item 2
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)



current K-1 processing costs.  Except as stated above, thus far, the Partnership
has been essentially unaffected by the change from calendar year 1999 to 2000.

As  previously  discussed  in the  1997,  1998,  and 1999  Annual  Reports,  the
Partnership  is reviewing  its  strategic  alternatives  in light of the various
mergers and other business transactions  occurring in the natural gas and energy
industry.  Although no decision  to sell or combine the  Partnership's  business
with others has been made, the Partnership anticipates possible discussions with
third parties,  which could result in such a decision.  The  Partnership  has no
timetable  for any such  discussions,  and there is no  assurance  that any such
discussions  will lead to a  transaction.  During the first  quarter of 1998 the
Partnership  adopted a severance  policy which would provide up to approximately
$2.8 million of severance payments.

 <PAGE>
                            DORCHESTER HUGOTON, LTD.
                          (A Texas Limited Partnership)

                                OTHER INFORMATION
PART II

Item 1. Legal Proceedings: See Notes to Condensed Financial Statements.

Item 5. Other  Information:
          a)   Mr.  W.  Randall  Blank  was  re-appointed  to the  Partnership's
               Advisory Committee for a two-year term. Mr. Rawles Fulgham,  also
               on the Advisory Committee, will be eligible for re-appointment in
               2001. The Advisory Committee functions as the Audit Committee for
               the Partnership.
          b)   Although  appearing to not be required to do so by current rules,
               the Partnership,  with Advisory  Committee  approval,  adopted an
               Audit  Committee  charter  including  annual review that complies
               with the Nasdaq's Marketplace Rules.

Item 6. Exhibits and Reports on Form 8-K:
          a)   Exhibit 27 - Financial Data Schedule
          b)   Reports on Form 8-K - None.



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                       DORCHESTER HUGOTON, LTD.
                                       Registrant





Date: August 3, 2000                   /s/ Kathleen A. Rawlings
                                       Kathleen A. Rawlings
                                       Controller (Principal Accounting Officer)