On July 29, 1995, at 1005 central daylight time, an Aerostar PA- 60-601A, N135TS, was substantially damaged following an in- flight collision with a fence and a railroad berm shortly after takeoff from the Covey Trails Airpark, Fulshear, Texas. The private pilot was not injured. The airplane, owned by the pilot, was operating under Title 14 CFR Part 91. No flight plan was filed and visual meteorological conditions prevailed for the planned cross country flight to Carlsbad, California. On the enclosed Pilot/Operator Report, the pilot stated the following information.. The airplane was flown from Houston, Texas, "with all systems operating normally" and landed at Covey Trails to refuel. Prior to take off, a "normal runup indicated [that] all systems [were] performing as expected." Prior to releasing the brakes for take off, both "engines were brought to full power." After rotation, the pilot attempted to retract the gear with negative results. He stated that the airplane was "sluggish with the gear down", and a second attempt to retract the gear was unsuccessful. The extended landing gear "hit a fence" beyond the departure end of the runway and subsequently struck a gravel railroad berm. The pilot further stated that, the airplane was "still flying in a sluggish manner" so he elected to "shut the throttles down" and landed. The airplane came to rest in a field with tall grass. Examination of the airplane by a Federal Aviation Administration inspector revealed structural damage to both wings and the fuselage. A fence post was observed to be broken, with a separated landing gear oleo strut found adjacent to the post. Additionally, a ground scar was observed perpendicular to the gravel railroad berm.