On October 12, 1994, at 1000 Pacific daylight time, a Piper PA- 38-112, N4334E, landed short of runway 16, at the Albany Airport, Albany, Oregon, and collided with the terrain. Visual meteorological conditions prevailed at the time and no flight plan was filed. The airplane was substantially damaged and the flight instructor and student pilot were not injured. The flight had originated from Albany at 0900, for a local instructional flight. The flight instructor reported that after practicing ground reference maneuvers, the flight returned to Albany to practice touch-and-go landings. While on final approach with power at idle and full flaps extended, the instructor stated that the flare altitude looked ok and he did not see any reason to interfere with the student's approach. The airplane settled faster than expected and touched down a few feet prior to the runway edge pavement. The nose gear contacted the edge and was sheared off. The main landing gear tires deflated and the airplane skidded to a stop.