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 September 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 October 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

                               September 30, 2000


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

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

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

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

          Condensed Statements of Cash Flows for the Nine Months Ended
          September 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)
                                                           Sept. 30,   Dec. 31,
                                                             2000       1999
                                                           --------   --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents .......................      $ 11,817    $ 7,017
    Restricted cash ..................................          404        390
    Investments - available for sale .................        5,704      5,156
    Accounts receivable, net .........................        3,152      1,555
    Prepaid expenses and other current assets ........          438        141
                                                            -------    -------
      Total current assets ...........................       21,515     14,259
                                                            -------    -------

Property and equipment - at cost .....................       29,495     29,203
    Less depreciation, depletion and amortization ....      (16,558)   (15,297)
                                                            -------   --------
      Net property and equipment .....................       12,937     13,906
                                                            -------   --------

Total assets .........................................      $34,452    $28,165
                                                            =======    =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities ...      $ 1,119    $   252
    Production and property taxes payable or accrued .          841        630
    Royalties and production payment payable .........        1,227        889
    Distributions payable to Unitholders .............        2,390      1,956
                                                            -------    -------
      Total current liabilities ......................        5,577      3,727

Long-term debt .......................................          100        100
                                                            -------    -------
      Total liabilities ..............................        5,677      3,827
                                                            -------    -------
Commitments and contingencies (Note 2)

Partnership capital:
    General partners .................................          179        140
    Unitholders ......................................       25,410     21,559
    Accumulated other comprehensive income ...........        3,186      2,639
                                                            -------    -------
      Total partnership capital ......................       28,775     24,338
                                                            -------    -------

Total liabilities and partnership capital ............      $34,452    $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      Nine Months Ended
                                          September 30,          September 30,
                                       ------------------      ----------------
                                         2000       1999         2000     1999
                                       --------   -------      -------  -------

Net operating revenues:
     Natural gas sales .............   $ 7,368    $ 4,509      $17,497  $11,289
     Other .........................        60         51          168      143
     Production payment (ORRI) .....      (391)      (223)        (895)    (523)
                                       -------    -------      -------  -------
Total net operating revenues .......     7,037      4,337       16,770   10,909
                                       -------    -------      -------  -------
Costs and expenses:
    Operating, including prod. taxes     1,068        900        3,019    2,643
    Depletion, depreciation & amort.       453        477        1,344    1,427
    General and administrative .....       196        139          513      408
    Management fees ................       155        128          421      362
    Interest .......................        10         10           29       28
    Other (income) expense, net ....       (84)       (86)         164     (219)
                                       -------    -------      -------  -------
Total costs and expenses ...........     1,798      1,568        5,490    4,649
                                       -------    -------      -------  -------
Net earnings .......................   $ 5,239    $ 2,769      $11,280  $ 6,260
                                       =======    =======      =======  =======
Net earnings per Unit (in dollars) .   $  0.48    $  0.26      $  1.04  $  0.58
                                       =======    =======      =======  =======

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


Net earnings .......................   $ 5,239    $ 2,769      $11,280  $ 6,260
Unrealized holding gain (loss) on
     available for sale securities .       680        (72)         548      184
                                       --------   -------      -------  -------
Comprehensive income ...............   $ 5,919    $ 2,697      $11,828  $ 6,444
                                       ========   =======      =======  =======

                     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)

                                                            Nine Months Ended
                                                              September 30,
                                                           --------------------
                                                             2000         1999
                                                           -------      -------

Cash flows provided by operating activities ..........     $12,094      $ 7,287
                                                           -------      -------
Cash flows used in investing activities:
    Purchases of prop. & equipment ...................        (402)        (296)
    Cash received on sale of other property and equip.          54           12
                                                           -------      -------
Cash flows used in investing activities ..............        (348)        (284)
                                                           -------      -------
Cash flows used in financing activities:
    Distributions paid to Unitholders ................      (6,946)      (5,862)
                                                           -------      -------
Cash flows used in financing activities ..............      (6,946)      (5,862)
                                                           -------      -------

Increase in cash and cash equivalents ................       4,800        1,141
Cash and cash equivalents at January 1, ..............       7,017        4,167
                                                           -------      -------
Cash and cash equivalents at September 30, ...........     $11,817      $ 5,308
                                                           =======      =======












                     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 September 30, 2000,  the value
     of the escrow is approximately $404,000. 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 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 (9 1/2%) on
     September  30  and  October  31,  2000.  All  amounts  borrowed  under this
     facility  will become due and payable on July 31, 2001.  As of September 30
     and October 31, 2000,  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 and nine months ended
September 30, 2000 were  $5,987,000 and  $12,094,000  compared to $2,988,000 and
$7,287,000  for the same periods of 1999.  Third quarter net earnings were $0.48
per Unit  compared  to $0.26  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 $11,817,000 on September 30, 2000 compared to $7,017,000 on December 31,
1999.  Prepaid expenses  and other current assets increased because of insurance
premium payments made in the September 2000 quarter. 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 the first two calendar  quarters of 2000. On October 13, 2000
the Partnership paid an increased  quarterly  distribution of $0.22 per Unit for
the third  calendar  quarter of 2000.  The total of the four  distributions  was
approximately $7,380,000.

In connection with the Oklahoma  properties,  in May 2000 the  Partnership  paid
approximately  $730,000 in production  payments for the year ended  February 29,
2000;  an  additional  $701,000 has been accrued  through  September,  2000.  As
previously discussed, an accrual of approximately $500,000 was recorded to Other
(income)  expense,  net during  June 2000 as a possible  penalty  payment  for a
clerical  error  regarding  tax  return  extensions;  please  see  Note 2 to the
Financial Statements.

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

                                    Three Months Ended         Nine Months Ended
                               ----------------------------    -----------------
                                 September 30,                   September 30,
                               ----------------     June 30,   -----------------
                                2000       1999       2000      2000       1999
Sales Volumes - MMCF:          -----      -----      -----     -----      -----
   Oklahoma ...............    1,427      1,397      1,374     4,193      4,146
   Kansas .................      269        327        282       842      1,011
                               -----      -----      -----     -----      -----
Total MMCF ................    1,696      1,724      1,656     5,035      5,157
                               =====      =====      =====     =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma ...............    $4.33      $2.60      $3.50     $3.46      $2.17
   Kansas .................     4.41       2.68       3.58      3.55       2.25
Overall Weighted Avg - $/MCF   $4.34      $2.62      $3.51     $3.48      $2.19

Oklahoma gas sales volumes were essentially unchanged during the current quarter
compared  to the same  quarter of 1999 and higher than the  previous  quarter of
2000 during which more production was reduced by state tests. Kansas natural gas
sales  volumes  were lower during the current  quarter  compared to the previous
quarter and the same  quarter of 1999 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)



Through  September 30, 2000,  the  Partnership  has fracture  treated  (creating
cracks in the  formation  to assist gas flow from the  producing  zones into the
well  bore)  ten  wells  this year in  Oklahoma.  Of the ten  wells the  highest
increase  in volume  was from 100 MCF per day to 309 MCF per day  recently.  One
well  decreased  volume from 98 MCF per day to 70 MCF per day  although  shut-in
pressure  increased  from 28.6 psig to 47 psig.  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 plans to continue fracture  treatments.
Two  fracture  treatments  completed  in late  October,  2000  are  still  being
evaluated. The Partnership's Fort Riley well production continues to vary around
50-60 MCF per day with about 6 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 that affects the
Partnership's  wells.  Such  installations  by others could require  Partnership
expenditures to stay competitive with adjoining operators.

During October and November 2000,  Kansas  preliminarily  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. The Partnership is presently  retesting
nine  wells to comply  with  these new  regulations.  The  Partnership  does not
anticipate any significant  change in current  production;  possible  effects on
future production allowed by the state are not 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. Two of
the fifteen 15 wells were recompleted in the Guymon Hugoton Field which improved
production  by 50 to 70 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 21 MCF per day to 382 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  41 MCFD,  16 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 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.  Additionally,  normal costs
associated with K-1 processing,  including the new cost of electronic  filing of
tax year 2000 K-1's,  have increased  significantly as reflected in increases in
General and  administrative  costs.  Consequently,  the Partnership  believes it
could incur estimated total  expenditure  increases over prior years of $250,000
to  $300,000  during  calendar  year  2000  and 2001 on K-1  preparation  and/or
conversion costs.


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: None.

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