The pilot reported that just after lifting off in the balloon, one of his passengers dropped to the bottom of the basket in fear. After about fifteen minutes of trying to get the passenger to relax, the pilot began looking for a place to land the balloon. The balloon was about 75 ft above ground level (agl) when the burner flamed out. While trying to relight the burner, the balloon descended and struck power transmission lines, severing four of the eight suspension cables attached to the basket. According to the pilot, the Adams burners have a history of flame outs, and he has experienced it many times.
The pilot reported no pre-impact mechanical malfunctions or failures with the hot air balloon that would have precluded normal operation.