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, 2001                   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, 2001,  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, 2001


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

          Condensed Balance Sheets as of June 30, 2001 (Unaudited)
          and December 31, 2000

          Condensed Statements of Earnings for the Three and Six
          Months Ended June 30, 2001 and 2000 (Unaudited)

          Statements of Comprehensive Income for the Three and Six
          Months Ended June 30, 2001 and 2000 (Unaudited)

          Condensed Statements of Cash Flows for the Six Months Ended
          June 30, 2001 and 2000 (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,
                                                             2001       2000
                                                           --------   --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents .......................      $ 24,232    $15,767
    Restricted cash ..................................          416        409
    Investments - available for sale .................        5,590      5,564
    Accounts receivable, net .........................        2,180      4,092
    Prepaid expenses and other current assets ........          296        284
                                                            -------    -------
      Total current assets ...........................       32,714     26,116
                                                            -------    -------

Property and equipment - at cost .....................       34,847     29,589
    Less depreciation, depletion and amortization ....      (17,834)   (16,996)
                                                            -------   --------
      Net property and equipment .....................       17,013     12,593
                                                            -------   --------

Total assets .........................................      $49,727    $38,709
                                                            =======    =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities ...      $ 5,948    $   443
    Production and property taxes payable or accrued .          883        996
    Royalties and production payment payable .........          404      1,851
    Distributions payable to Unitholders .............        2,932      2,389
                                                            -------    -------
      Total current liabilities ......................       10,167      5,679

Long-term debt .......................................          100        100
                                                            -------    -------
      Total liabilities ..............................       10,267      5,779
                                                            -------    -------
Commitments and contingencies (Note 2)

Partnership capital:
    General partners .................................          287        222
    Unitholders ......................................       36,100     29,661
    Accumulated other comprehensive income ...........        3,073      3,047
                                                            -------    -------
      Total partnership capital ......................       39,460     32,930
                                                            -------    -------

Total liabilities and partnership capital ............      $49,727    $38,709
                                                            =======    =======
                     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,
                                       ------------------      ----------------
                                         2001       2000         2001     2000
                                       --------   -------      -------  -------

Net operating revenues:
     Natural gas sales, net ........   $ 6,955    $ 5,514      $18,277  $ 9,625
     Other .........................        59         58          115      108
                                       -------    -------      -------  -------
Total net operating revenues .......     7,014      5,572       18,392    9,733
                                       -------    -------      -------  -------
Costs and expenses:
    Operating, including prod. taxes     1,400      1,035        2,827    1,951
    Depletion, depreciation & amort.       566        442          972      891
    General and administrative .....       256        177          481      317
    Management fees ................       154        140          352      266
    Interest .......................        10          9           19       19
    Other (income) expense, net ....      (202)       366         (313)     248
                                       -------    -------      -------  -------
Total costs and expenses ...........     2,184      2,169        4,338    3,692
                                       -------    -------      -------  -------
Net earnings .......................   $ 4,830    $ 3,403      $14,054  $ 6,041
                                       =======    =======      =======  =======
Net earnings per Unit (in dollars) .   $  0.44    $  0.32      $  1.29  $  0.56
                                       =======    =======      =======  =======

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


Net earnings .......................   $ 4,830    $ 3,403      $14,054  $ 6,041
Unrealized holding gain (loss) on
     available for sale securities .       406         44           26     (132)
                                       --------   -------      -------  -------
Comprehensive income ...............   $ 5,236    $ 3,447      $14,080  $ 5,909
                                       ========   =======      =======  =======

                     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,
                                                           --------------------
                                                             2001         2000
                                                           -------      -------

Cash flows provided by operating activities ..........     $20,792      $ 6,107
                                                           -------      -------
Cash flows used in investing activities:
    Purchases of property & equipment ................      (5,407)        (129)
    Cash received on sale of other property and equip.          26           11
                                                           -------      -------
Cash flows used in investing activities ..............      (5,381)        (118)
                                                           -------      -------
Cash flows used in financing activities:
    Distributions paid to Unitholders ................      (6,946)      (4,992)
                                                           -------      -------
Cash flows used in financing activities ..............      (6,946)      (4,992)
                                                           -------      -------

Increase in cash and cash equivalents ................       8,465          997
Cash and cash equivalents at January 1, ..............      15,767        7,017
                                                           -------      -------
Cash and cash equivalents at June 30, ................     $24,232      $ 8,014
                                                           =======      =======












                     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  ("FERC").  On March 9, 1998,  $151,757  was paid to PEPL and an
     additional  $366,633 was placed into an escrow  account.  On March 2, 1999,
     $2,840 was released from escrow to PEPL. At July 31, 2001, the value of the
     escrow is approximately $417,000. During July 2001, the Partnership,  along
     with numerous other natural gas producers,  have agreed with PEPL to settle
     all issues. This settlement awaits FERC approval which is expected soon.

     The   Partnership   is  involved  in  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 with Bank One, Texas,  N.A. The current  borrowing
     base is  $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 (6.75%) on June
     30 and July 31, 2001. All amounts  borrowed under this facility will become
     due and payable on July 31, 2002. As of June 30 and July 31, 2001,  letters
     of credit  totaling  $25,000 were issued under the credit  facility and the
     amount  borrowed was $100,000  (the minimum  borrowing  level  necessary to
     maintain the credit facility).

4.   On August 2, 2001 the Partnership filed a Report on Form 8-K as of July 31,
     2001 in response to Items 5 and 7 thereof.
<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,  2001 were  $9,651,000  and  $20,792,000  compared  to  $2,973,000  and
$6,107,000 for the same periods of 2000.  Second quarter net earnings were $0.44
per Unit  compared  to $0.32  per Unit in 2000.  Operating  cash  flows  and net
earnings were higher during 2001 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  $24,232,000  on June 30, 2001 compared to  $15,767,000  on December 31,
2000.  During July 2001, the Partnership  reached  agreement to resolve required
federal refunds of Kansas tax reimbursements  received in the 1980's. Please see
Note 2 to the Financial Statements. An accrual of $500,000 was recorded to other
expense during June 2000 and reversed during October 2000. See the Partnership's
2000 Form 10-K for  additional  information.  On April 13, 2001 the  Partnership
paid an  increased  quarterly  distribution  of $0.27  per  Unit  for the  first
calendar  quarter of 2001. On June 15, 2001 the Partnership paid a special $0.15
per Unit distribution to Unitholders of record on May 31, 2001. On July 13, 2001
the Partnership paid the second calendar quarter distribution of $0.27 per Unit.

As previously  reported in the  Partnership's  Annual Report on Form 10-K, since
its first  annual  payment in 1997,  each May the  Partnership  pays an Oklahoma
production  payment  (calculated  through the prior February) that is based upon
the difference  between  market gas prices  compared to a table of rising prices
and based upon a table of  declining  volumes.  On May 15, 2001 the  Partnership
paid approximately $1,701,000 in production payments for the year ended February
28,  2001.  On August 9, 2001,  the  Partnership  paid  $5,270,000  to  acquire,
effective March 1, 2001, the Oklahoma production payment.

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

                                  Three Months Ended           Six Months Ended
                               ----------------------------    -----------------
                                   June 30,                         June 30,
                               ----------------     Mar. 31,   -----------------
                                2001       2000       2001      2001       2000
Sales Volumes - MMCF:          -----      -----      -----     -----      -----
   Oklahoma ...............    1,179      1,374      1,353     2,531      2,766
   Kansas .................      229        282        250       480        573
                               -----      -----      -----     -----      -----
Total MMCF ................    1,408      1,656      1,603     3,011      3,339
                               =====      =====      =====     =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma ...............    $4.82      $3.50      $7.49     $6.25      $3.01
   Kansas .................     4.87       3.58       7.60      6.29       3.14
Overall Weighted Avg - $/MCF    4.83       3.51       7.51      6.26       3.03
<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)



Oklahoma  gas sales  volumes  during the second  quarter of 2001 were lower than
both the  previous  quarter and same  quarter of 2000  primarily  as a result of
previously  announced  extensive  scheduled  maintenance causing downtime on the
Partnership's  central gas compression  units that deliver the Partnership's gas
into sales  pipelines.  See  Partnership's  2000 Annual Report on Form 10-K. The
three units  comprising  5400  horsepower were installed new in 1994 and, except
for 1998 unrelated scheduled  maintenance,  each  engine/compressor unit had run
almost  continuously  for  more  than  50,000  hours.  No  major  problems  were
discovered  and  approximately  $300,000 was spent.  The units are  scheduled to
undergo a lesser  degree of  maintenance  in 2003.  Kansas gas sales  during the
second quarter of 2001 were less than the previous  quarter and the same quarter
of 2000 because of natural reservoir decline and well shut-ins required by state
deliverability tests necessary to implement gas well operation at a vacuum.

Since May 2001, the Partnership  has fracture  treated  (creating  cracks in the
formation to assist gas flow from the producing  zones into the well bore) three
wells in Oklahoma,  including  the  refracture  of one well first treated in the
first quarter.  The refracture  treatment  slightly increased the well's shut-in
pressure  but thus far has not improved  gas volume.  Fracture  treatment of two
wells produced excellent results with shut-in pressure  increasing from 31 to 57
psig and from 29 to 49 psig.  Volume  increases on the two wells were 138 to 169
mcf per day and 98 to 168 mcf per day.  The  Partnership  plans to continue  the
fracture  treatment  program on other wells. The  Partnership's  Fort Riley well
production  continues  to vary  around 40 - 50 mcf per day with  about 7 bbls of
water per week. The Partnership, as non-operator,  will participate,  during the
last half of 2001,  in the  deepening of one Oklahoma well to include Fort Riley
production.

As discussed in the 2000 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 that affects the
Partnership's wells during 2001 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.

During 2000, Kansas adopted new regulatory rules, agreed upon by most producers,
to enable the use of field  compressors  to  operate  Hugoton  field  wells at a
vacuum and provide that no well will be restricted to less than 100 mcf per day.
Possible  effects on future  production  in excess of 100 mcf per day allowed by
the state regulations are not predictable. The Partnership has received approval
to  operate  all its  wells  at a  vacuum;  however,  the  Partnership  does not
anticipate any significant change in current production.

<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)



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. Two of
the  fifteen  (15) wells were  recompleted  in the Guymon  Hugoton  field  which
presently reduced production 91 mcf per day on one well and improved  production
by 18 mcf per day on the other well  compared  to the  original  Guymon  Hugoton
wells that were plugged and abandoned per state  regulations.  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 in the 13  remaining
wells have varied from 5 to 436 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  29,  12  and  10  mcf  per  day.  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 notified us that their current
computer  software  would not be able to process  year 2000 tax returns in early
2001.  Subsequently,  the  Partnership was notified that the accounting firm had
begun  developing  new software  and acquired  another firm that had a year 2000
compliant product. Conversion of the data to the year 2000 compliant product has
been  performed.  On July 15,  2001,  the  Partnership  return  with  K-1's  was
electronically filed and accepted by the Internal Revenue Service.  Expenditures
have increased  significantly  compared to prior years as reflected in increases
in general and  administrative  costs.  The  Partnership  believes it should not
incur many costs during 2001 related to the conversion to the year 2000 product.

On August 2, 2001, the Partnership  filed a Report on Form 8-K, which included a
press release and a non-binding letter of intent  contemplating a combination of
the businesses and/or  properties of the Partnership,  Republic Royalty Company,
and Spinnaker  Royalty Company,  L.P. in a non-taxable  transaction,  into a new
publicly  traded limited  partnership.  With limited  exceptions,  the letter of
intent is  non-binding,  and the  transaction  is  subject  to  negotiation  and
execution of a definitive agreement.

<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: - None.

Item 6.   Exhibits and Reports on Form 8-K:
          a)   Reports on Form 8-K: - On August 2, 2001 the Partnership  filed a
               Report on Form 8-K as of July 31, 2001 in response to Items 5 and
               7 thereof.



                                   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 10, 2001                  /s/ Kathleen A. Rawlings
                                       Kathleen A. Rawlings
                                       Controller (Principal Accounting Officer)