On July 24, 2004, about 0930 eastern daylight time, an Avian Falcon II balloon, N15053, sustained minor damage while landing in a field near Middletown, Ohio. The certificated private pilot was not injured, and a passenger sustained serious injuries. Visual meteorological conditions prevailed and no flight plan had been filed for the personal flight conducted under 14 CFR Part 91. The pilot and passenger were participating in the Ohio Challenge Balloon Festival. According to the pilot, after about a 1 hour flight, he elected to land in an open field. The pilot noticed that the surface winds had increased to about 11 to 12 knots, and briefed the passenger prior to landing. The balloon touched down in the field, and began to drag along the ground. The basket tipped forward, and the passenger fell out of the basket. The balloon became airborne again, cleared a tree line, and touched down in an adjacent field. The balloon envelope came to rest draped over a power line. The passenger sustained a fractured rib, and three spinal compressions. During an interview, the passenger stated she was briefed by the pilot prior to landing; however, she was unable to hold on. She added that she believed the basket may have contacted a fence during the landing. In a follow-up interview, the pilot stated that the balloon touched down just beyond a single strand electric fence. The basket then tipped over, as it was being dragged by the wind. Winds reported at an airport located about 16 miles northeast of the accident site, at 0853, were from 050 degrees at 10 knots.