On June 17, 2004, about 0715 Pacific daylight time, a Balloon Works Fire Fly 9 balloon, N3097R, collided with terrain while landing near Aurora, Oregon. The balloon is registered to the pilot and was being operated under the provisions of Title 14, CFR Part 91, when the accident occurred. Of the seven people aboard (pilot plus 6 passengers), the certificated commercial pilot and one passenger sustained serious injuries, another passenger received minor injures, and the remaining four passengers were not injured. Visual meteorological conditions prevailed, and no flight plan was filed for the local flight. The flight originated at Tigard, Oregon, approximately 1 hour prior to the accident. In a written statement provided to the National Transportation Safety Board (NTSB), the pilot reported that after about one hour of flight he "...came down to the surface to set up for a landing." He stated the winds were greater than expected (estimated to be 10-12 MPH) and prepared for a high wind landing. The pilot stated that during the landing approach the basket "...impacted land and dragged approximately 30-40 yards before coming to a stop" on its side.