On July 1, 2003, at 0745 mountain daylight time, an Eagle Balloons Corporation C-7 balloon, N360E, piloted by a private pilot, sustained a hard landing at Rio Rancho, New Mexico. During the hard landing, a passenger on board the balloon was seriously injured. The balloon sustained no damage and the pilot was uninjured. Visual meteorological conditions prevailed at the time of the accident. The personal flight was being conducted under the provisions of Title 14 CFR Part 91 without a flight plan. The local flight originated at 0710. The pilot reported that the winds were calm when they took off. He reported on landing they were approximately 10 knots. The pilot said he made a stand-up landing in hilly terrain. The pilot reported that the landing was a hard landing, but was not one of the hardest landings he'd experienced. A Federal Aviation Administration inspector reported the passenger suffered a compound fracture in her lower left leg during the landing. The passenger was transported to a local hospital.