On February 23, 2002, at 0805 Pacific standard time, a Thunder and Colt, Colt 120A balloon, N240TC, landed hard near Moreno Valley, California. One passenger was seriously injured; three passengers suffered minor injuries; and the commercial certificated pilot and five remaining passengers were not injured. The hot air balloon received minor damage. The local area sightseeing flight was operated by The Great American Balloon Company under 14 CFR Part 91, and departed from the Perris Valley, California, airport at 0710. Visual meteorological conditions prevailed and no flight plan was filed. The pilot reported that he intended to conduct the flight for about 30 minutes, land in a field, where the passengers would disembark, and another gruop of passengers would board. During the landing descent, the pilot enountered high ground winds, and subsequently attempted to conduct a high-wind landing. The balloon struck the ground, and then dragged across the ground for about 70 yards.