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 March 31, 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 March 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

                                 March 31, 2001


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

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

          Condensed Statements of Earnings for the Three
          Months Ended March 31, 2001 and 2000 (Unaudited)

          Statements of Comprehensive Income for the Three
          Months Ended March 31, 2001 and 2000 (Unaudited)

          Condensed Statements of Cash Flows for the Three Months Ended
          March 31, 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)
                                                           March 31,    Dec. 31,
                                                             2001        2000
                                                           --------    --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents ..........................   $ 24,494     $15,767
    Restricted cash ....................................        413         409
    Investments - available for sale ...................      5,184       5,564
    Accounts receivable, net ...........................      3,464       4,092
    Prepaid expenses and other current assets ..........        229         284
                                                            -------     -------
      Total current assets .............................     33,784      26,116
                                                            -------     -------

Property and equipment - at cost .......................     29,492      29,589
    Less depreciation, depletion and amortization ......    (17,268)    (16,996)
                                                            -------    --------
      Net property and equipment .......................     12,224      12,593
                                                            -------    --------

Total assets ...........................................    $46,008     $38,709
                                                            =======     =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities .....    $   589     $   443
    Production and property taxes payable or accrued ...      1,115         996
    Royalties and production payment payable ...........      2,428       1,851
    Distributions payable to Unitholders ...............      2,932       2,389
                                                            -------     -------
      Total current liabilities ........................      7,064       5,679

Long-term debt .........................................        100         100
                                                            -------     -------
      Total liabilities ................................      7,164       5,779
                                                            -------     -------
Commitments and contingencies (Note 2)

Partnership capital:
    General partners ...................................        285         222
    Unitholders ........................................     35,892      29,661
    Accumulated other comprehensive income .............      2,667       3,047
                                                            -------     -------
      Total partnership capital ........................     38,844      32,930
                                                            -------     -------

Total liabilities and partnership capital ..............    $46,008     $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
                                                                 March 31,
                                                           ---------------------
                                                              2001       2000
                                                           ----------  ---------

Net operating revenues:
     Natural gas sales .................................    $12,038     $ 4,318
     Other .............................................         56          50
     Production payment (ORRI) .........................       (716)       (207)
                                                            -------     -------
Total net operating revenues ...........................     11,378       4,161
                                                            -------     -------
Costs and expenses:
    Operating, including production taxes ..............      1,427         916
    Depletion, depreciation & amortization .............        406         449
    General and administrative .........................        225         140
    Management fees ....................................        198         126
    Interest ...........................................          9          10
    Other income, net ..................................       (111)       (118)
                                                            -------     -------
Total costs and expenses ...............................      2,154       1,523
                                                            -------     -------
Net earnings ...........................................    $ 9,224     $ 2,638
                                                            =======     =======
Net earnings per Unit (in dollars) .....................    $  0.85     $  0.24
                                                            =======     =======

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


Net earnings ...........................................    $ 9,224     $ 2,638
Unrealized holding loss on available
    for sale securities ................................       (380)       (176)
                                                            -------     -------
Comprehensive income ...................................    $ 8,844     $ 2,462
                                                            =======     =======

            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)

                                                            Three Months Ended
                                                                 March 31,
                                                           --------------------
                                                             2001         2000
                                                           -------      -------

Cash flows provided by operating activities .............  $11,141      $ 3,134
                                                           -------      -------
Cash flows used in investing activities:
    Purchases of property and equimpment ................      (52)         (41)
    Cash received on sale of other property and equipment       26          -0-
                                                           -------      -------
Cash flows used in investing activities .................      (26)         (41)
                                                           -------      -------
Cash flows used in financing activities:
    Distributions paid to Unitholders ...................   (2,388)      (3,039)
                                                           -------      -------
Cash flows used in financing activities .................   (2,388)      (3,039)
                                                           -------      -------

Increase in cash and cash equivalents ...................    8,727           54
Cash and cash equivalents at January 1, .................   15,767        7,017
                                                           -------      -------
Cash and cash equivalents at March 31, ..................  $24,494      $ 7,071
                                                           =======      =======




            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 March 31, 2001,  the value of
     the escrow is  approximately  $413,000.  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 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 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 (8%) on March 31,
     2001 and (7 1/2%) on April  30,  2001.  All  amounts  borrowed  under  this
     facility  will become due and payable on July 31, 2002.  As of March 31 and
     April 30, 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).
<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 months ended March 31,
2001 were $11,141,000 compared to $3,134,000 for the same period of 2000.  First
quarter  net  earnings  were $0.85 per Unit  compared to $0.24 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  $24,494,000  on March 31, 2001 compared to  $15,767,000 on December 31,
2000. On April 13, 2001 the Partnership paid an increased quarterly distribution
of $0.27 per Unit for the first  calendar  quarter  of 2001.  On May 3, 2001 the
Partnership  declared a special $0.15  distribution  to be paid on June 15, 2001
for Unitholders of record on May 31, 2001.

In connection with the Oklahoma properties, in May 2001 the Partnership will pay
approximately  $1,701,000 in production payments for the year ended February 28,
2001; an additional $139,000 has been accrued through March, 2001.

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

                                                      Three Months Ended
                                                ------------------------------
                                                    March 31,          Decem-
                                                -----------------      ber 31,
                                                 2001       2000        2000
Sales Volumes - MMCF:                           ------     ------     -------
   Oklahoma .................................    1,353      1,392      1,383
   Kansas ...................................      250        291        240
                                                 -----      -----      -----
Total MMCF ..................................    1,603      1,683      1,623
                                                 =====      =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma .................................   $ 7.49     $ 2.53     $ 5.45
   Kansas ...................................     7.60       2.72       5.54
Overall Weighted Avg - $/MCF ................   $ 7.51     $ 2.57     $ 5.47

When adjusted for the number of days in the quarter,  Oklahoma gas sales volumes
during the first quarter of 2001 were  identical to the fourth  quarter of 2000,
while Kansas gas sales volumes  increased  slightly  during the first quarter of
2001 because of well testing during the fourth quarter of 2000.  Both Kansas and
Oklahoma  first  quarter 2001 gas sales volumes were slightly less than the same
quarter of 2000 as a result of natural reservoir decline.

<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)

During  2001 the  Partnership  has  fracture  treated  (creating  cracks  in the
formation  to assist gas flow from the  producing  zones into the well bore) two
wells in Oklahoma.  One well  increased in shut-in  pressure  from 40 psig to 67
psig and increased in volume from 168 mcfd to 225 mcfd, thus probably increasing
reserves.  The other well did not respond  because of a hole in the well casing,
likely diverting the fracture treatment into a non-productive  zone. The well is
being scheduled for repair and  refracturing.  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 8 bbls of water
per week.

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  during 2001 by
operators on adjoining acreage resulting from the relaxed  production rules that
affect the  Partnership's  wells.  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 begun receiving
approval  to  operate  wells at a  vacuum;  however,  the  Partnership  does not
anticipate any significant change in current production.

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 improved production  by 30 to 157 MCF per day  over  the two  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 15 MCF per day to 357 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 33 MCFD, 22 MCFD and 10
MCFD.  The  Partnership  has a minor  overriding  royalty  interest in the three
wells.
<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)



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,  acquired  another  firm  that had a Year 2000
compliant product, and was preparing for newly required electronic filing of tax
year 2000 K-1's with the Internal Revenue Service. Conversion of the data to the
year 2000  compliant  product has been  performed.  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.

As  discussed  in the 1997  through  2000 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:   Mr.  Rawles  Fulgham  was  re-appointed  to  the
     Partnership's Advisory Committee for a three-year term. Mr. Ronald P. Trout
     was appointed to fill a third seat on the Partnership's  Advisory Committee
     for an initial term of two years. Mr. Trout recently retired from Hourglass
     Capital Mgt. (a Texas money  management  firm) where he was  Co-Founder and
     Senior  Vice  President.   Such  appointments   comply  with  the  Nasdaq's
     Marketplace Rules.

Item 6. Exhibits and Reports on Form 8-K:
     a)   Exhibit 3.03 - Amendment to the Partnership  Agreement dated April 27,
          2001  providing  for a third  member and  staggered  terms of Advisory
          Committee.
     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: May 4, 2001                      /s/ Kathleen A. Rawlings
                                       Kathleen A. Rawlings
                                       Controller (Principal Accounting Officer)