On November 27, 1995, approximately 1000 central standard time, a Hughes 369HS, N8312F, was substantially damaged when it collided with terrain while descending near Leakey, Texas. The commercial pilot received minor injuries. Visual meteorological conditions prevailed at the time, and a flight plan was not filed for the business flight conducted under Title 14 CFR Part 91. The flight originated near Leakey, Texas, on November 27, 1995, and had flown for approximately 5 minutes. The following is based on the Pilot/Operator Aircraft Accident Report. The pilot had been transporting fencing materials to the top of a 300-foot hill. On the last flight of the day, the cargo consisted of two bags of cement that weighed 98 pounds each. Up to that point, the helicopter had flown 1-1/2 hours. When the helicopter was halfway up the hill and 100 feet above the ground, the engine "flamed out." The pilot made a right pedal turn and initiated an autorotation. The helicopter collided with the hill, nosed over, and slid downhill. He told an FAA inspector that he had 50 pounds of fuel on board prior to the last takeoff. The pilot reported that "just before the engine lost power, it was developing 45 percent torque and the fuel boost pump was off." The pilot said he was paid $525 per hour for his services and the use of the helicopter. According to FAA records, Holt Helicopters, Inc., does not hold an air carrier operating certificate to conduct for-hire operations under Title 14 CFR Part 135. In addition, according to Federal Aviation Regulations, his second class medical certificate, dated May 5, 1994, is valid for 12 months when conducting commercial operations. The engine was later functionally tested at an authorized engine maintenance facility. The engine operated normally with no discrepancies noted (report attached).