It happened just after 1:00 am on Tulare Street and Lincoln Avenue.
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Firefighters arrived to find flames burning a two-story house.
During the fire, a gas line broke, creating a dangerous situation for both the fire crews and nearby residents.
Madera police officers had to evacuate between 30 to 40 neighbors until PG&E could shut off the gas line.
The people were out of their homes for a little more than two hours.
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The house that burned was destroyed. Fire officials say the home was abandoned and had been the scene of a previous fire.
The cause of the fire is under investigation.