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, 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 October 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

                               September 30, 2001


                                      INDEX


PART I.   FINANCIAL INFORMATION

  Item 1. Financial Statements:

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

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

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

          Condensed Statements of Cash Flows for the Nine Months Ended
          September 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)
                                                           Sept. 30,   Dec. 31,
                                                             2001       2000
                                                           --------   --------
                                     ASSETS              (Unaudited)
Current assets:
    Cash and cash equivalents .......................      $ 19,701    $15,767
    Restricted cash ..................................          419        409
    Investments - available for sale .................        5,043      5,564
    Accounts receivable, net .........................        1,579      4,092
    Prepaid expenses and other current assets ........          415        284
                                                            -------    -------
      Total current assets ...........................       27,157     26,116
                                                            -------    -------

Property and equipment - at cost .....................       34,936     29,589
    Less depreciation, depletion and amortization ....      (18,398)   (16,996)
                                                            -------   --------
      Net property and equipment .....................       16,538     12,593
                                                            -------   --------

Total assets .........................................      $43,695    $38,709
                                                            =======    =======
                       LIABILITIES AND PARTNERSHIP CAPITAL
Current liabilities:
    Accounts payable and other current liabilities ...      $   691    $   443
    Production and property taxes payable or accrued .          745        996
    Royalties and production payment payable .........          300      1,851
    Distributions payable to Unitholders .............        2,932      2,389
                                                            -------    -------
      Total current liabilities ......................        4,668      5,679

Long-term debt .......................................          -0-        100
                                                            -------    -------
      Total liabilities ..............................        4,668      5,779

Commitments and contingencies (Note 2)

Partnership capital:
    General partners .................................          288        222
    Unitholders ......................................       36,213     29,661
    Accumulated other comprehensive income ...........        2,526      3,047
                                                            -------    -------
      Total partnership capital ......................       39,027     32,930
                                                            -------    -------

Total liabilities and partnership capital ............      $43,695    $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     Nine Months Ended
                                          September 30,         September 30,
                                       ------------------     -----------------
                                         2001       2000        2001      2000
                                       --------   -------     -------   -------

Net operating revenues:
     Natural gas sales, net ........   $ 4,692    $ 6,977     $22,969   $16,602
     Other .........................        37         60         152       168
                                       -------    -------     -------   -------
Total net operating revenues .......     4,729      7,037      23,121    16,770
                                       -------    -------     -------   -------
Costs and expenses:
    Operating, including prod. taxes     1,010      1,068       3,837     3,019
    Depletion, depreciation & amort.       564        453       1,536     1,344
    General and administrative .....       206        196         687       513
    Management fees ................       132        155         484       421
    Interest .......................         9         10          28        29
    Other (income) expense, net ....      (237)       (84)       (550)      164
                                       -------    -------     -------   -------
Total costs and expenses ...........     1,684      1,798       6,022     5,490
                                       -------    -------     -------   -------
Net earnings .......................   $ 3,045    $ 5,239     $17,099   $11,280
                                       =======    =======     =======   =======
Net earnings per Unit (in dollars) .   $  0.28    $  0.48     $  1.57   $  1.04
                                       =======    =======     =======   =======

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


Net earnings .......................   $ 3,045    $ 5,239     $17,099   $11,280
Unrealized holding gain (loss) on
     available for sale securities .      (547)       680        (521)      548
                                       --------   -------     -------   -------
Comprehensive income ...............   $ 2,498    $ 5,919     $16,578   $11,828
                                       ========   =======     =======   =======

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

Cash flows provided by operating activities ..........     $19,280      $12,094

Cash flows used in investing activities:
    Purchases of property & equipment ................      (5,496)        (402)
    Cash received on sale of other property and equip.          26           54
                                                           -------      -------
Cash flows used in investing activities ..............      (5,470)        (348)

Cash flows used in financing activities:
    Distributions paid to Unitholders ................      (9,876)      (6,946)
                                                           -------      -------
Increase in cash and cash equivalents ................       3,934        4,800
Cash and cash equivalents at January 1, ..............      15,767        7,017
                                                           -------      -------
Cash and cash equivalents at September 30, ...........     $19,701      $11,817
                                                           =======      =======












                     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").  During March 1998,  $151,757 was paid to PEPL and an
     additional  $366,633 was placed into an escrow account.  During March 1999,
     $2,840 was released from escrow to PEPL.  At September 30, 2001,  the value
     of the escrow is approximately $419,000. During July 2001, the Partnership,
     along with numerous other natural gas producers, agreed with PEPL to settle
     all issues.  The FERC has approved the settlement  which contains  specific
     procedures  now  underway  to  enable  a final  payment  from  escrow.  The
     Partnership has adjusted its reserve estimates from approximately  $419,000
     to approximately $320,000.

     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, which was 6% on
     September 30 and 5.5% on October 31, 2001. All amounts  borrowed under this
     facility  will become due and payable on July 31, 2002.  As of September 30
     and October 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,  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.  On October 26, 2001, the Partnership filed a Report on Form 8-K
     consisting  of an  amendment  to the letter of intent to extend the time to
     complete  the  definitive  agreement  from  November 1, 2001 to December 4,
     2001.
<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, 2001 were ($1,512,000) and $19,280,000  compared to $5,987,000 and
$12,094,000  for the same  periods of 2000.  Third  quarter 2001 cash flows were
reduced, in part, as a result of the Partnership's cash purchase of a production
payment for $5,270,000. See the Partnership's 2001 second quarter report on Form
10-Q.  Third quarter net earnings were $0.28 per Unit compared to $0.48 per Unit
in 2000. Operating cash flows and net earnings were higher during the first nine
months of 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.
Disregarding the production  payment purchase,  third quarter cash flows and net
earnings were lower during 2001 compared to the same quarter 2000 primarily as a
result of lower natural gas market prices.

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. After the previously reported purchase of
the Oklahoma  production  payment  during August 2001,  cash and temporary  cash
investments totaled $19,701,000 on September 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 and October  12,  2001 the  Partnership  paid the second and third
calendar quarter distributions of $0.27 per Unit.

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         Nine Months Ended
                               ----------------------------    -----------------
                                September 30,                    September 30,
                               ----------------     June 30,   -----------------
                                2001       2000       2001      2001       2000
Sales Volumes - MMCF:          -----      -----     -------    -----      -----
   Oklahoma ...............    1,319      1,427      1,179     3,850      4,193
   Kansas .................      259        269        229       739        842
                               -----      -----      -----     -----      -----
Total MMCF ................    1,578      1,696      1,408     4,589      5,035
                               =====      =====      =====     =====      =====
Weighted Average Sales Prices - $/MCF:
   Oklahoma ...............    $2.94      $4.33      $4.82     $5.12      $3.46
   Kansas .................     3.15       4.41       4.87      5.19       3.55
Overall Weighted Avg - $/MCF    2.97       4.34       4.83      5.13       3.48
<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 third quarter of 2001 were higher than the
previous quarter during which scheduled maintenance was performed and lower than
the same  quarter of 2000 as a result of natural  reservoir  decline  and recent
pipeline  maintenance.  Kansas gas sales  during the third  quarter of 2001 were
less than the same quarter of 2000 as a result of natural  reservoir decline and
greater  than the  previous  quarter  during  which wells were shut-in for state
tests.

Since the previous  quarterly  report,  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.  Fracture  treatment  of one of the
wells produced good results with shut-in pressure  increasing from 33 to 47 psig
and volume  increasing  from 141 to 207 mcf per day. The other well  developed a
casing leak which is being repaired prior to refracturing. The Partnership plans
to continue the fracture treatment program on other wells.

Prior to October 2001, the  Partnership's  only well currently  producing  Upper
Fort Riley production continued to vary around 43 - 53 mcf per day with about 15
bbls of water per week. During 1998 the Partnership plugged the Upper Fort Riley
zone in another well and produced only  Winfield/Krider  zone production,  which
was recently 142 mcf per day. During October 2001, the Partnership  reopened the
previously  plugged  Upper Fort Riley zone.  At present,  the well is  producing
approximately  194 mcf per day and 36 bbls of  water  per day  from  both  zones
simultaneously.  The Partnership, as non-operator,  will participate, during the
last half of 2001,  in the  deepening of one Oklahoma well to include Upper Fort
Riley  production.  See Business and  Properties of the  Partnership in the 2000
Annual Report on Form 10-K for more information on the Fort Riley zone.

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.

<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 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 of state  allowed  production in excess of 100 mcf per day 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.

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 15 wells  were  recompleted  in the Guymon  Hugoton  field  which  presently
improved production 43 to 170 mcf per day over 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 3 to 396 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 7, 15 and 33 mcf per day. The Partnership
has a minor overriding royalty interest in the three wells.

As  previously  reported,  the  Partnership's  expenditures  for  K-1  tax  form
preparation  and federal  electronic  filing  have  increased  significantly  as
reflected  in general and  administrative  costs  compared to prior  years.  The
Partnership  recently secured a two-year  agreement for such tax preparation and
filing which will not apply in the event the  Partnership  combines as described
in the following  paragraph.

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.  On October 26, 2001, the Partnership filed
a Report  on Form 8-K  consisting  of an  amendment  to the  letter of intent to
extend the time to complete the  definitive  agreement  from November 1, 2001 to
December 4, 2001.

<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: - Because  of the resulting effect on each investor's
          K-1  tentative  UBTI  and  depletion  calculations,   the  Partnership
          requests  prompt  notification  of an  investor's  use of  the  deemed
          sale-repurchase  election under Section 311 of the Taxpayer Relief Act
          of 1997. None.

Item 6.   Exhibits and Reports on Form 8-K:
          a)   Reports on Form 8-K: On October 26, 2001 the Partnership  filed a
               Report on Form 8-K as of October  25, 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: November 1, 2001                /s/ Kathleen A. Rawlings
                                       Kathleen A. Rawlings
                                       Controller (Principal Accounting Officer)