On September 4, 2016, about 0830 mountain daylight time, a Cameron Z-90 lighter than air balloon with airborne heater, N982ZS, struck a power line and terrain during an uncontrolled descent, two and a half miles northeast of Morrill, Nebraska. The pilot and two passengers on board were not injured and the balloon received substantial damage. The balloon was registered to, and operated by a private individual under the provisions of 14 Code of Federal Regulations Part 91 as a personal flight. Visual meteorological conditions (VMC) prevailed for the flight that was operated without a flight plan. The local flight originated from the Mitchell, Nebraska, about 0726.The flight was part of a balloon festival that was taking place at the time. The pilot and passengers took off from a field near Mitchell, Nebraska, climbed to 1,100 ft. agl, and drifted west at 4 to 5 knots. The pilot reported that as he came over the power lines the wind speed reduced to calm and the balloon stopped. The pilot changed altitudes several times to find wind velocity and a vector that would move him away from the lines. After several attempts to maneuver away from the lines the pilot engaged the burners to climb to a higher altitude. As he engaged the burners, the pilot said he heard a change in the burners sound. He checked his fuel gauges; the quantity was low, and engaged the burners again, but the balloon began to lose altitude. During the uncontrolled descent, the balloon contacted the power lines causing a spark. The pilot pulled the deflation line to get the basket on the ground. The balloon basket contacted the ground and the envelope draped over the power lines. An examination of the balloon showed thermal arcing damage to one of the carabineers that attached the basket to the envelope. There was also thermal damage to two panels in the balloon envelope, and the envelope temperature sensor wire that runs from the sensor at the top of the envelope to the instruments in the basket was burnt in half. No other anomalies with the balloon or its systems were found. At 0853, the weather conditions at Western Nebraska Regional Airport (BFF), Scottsbluff, Nebraska, 18 nautical miles east-southeast of the accident site was clear skies, visibility 10 statute miles, and wind 150 degrees at 6 knots.