On December 12, 1996, at 0905 Alaska standard time, a float equipped DHC-2 Beaver airplane, N67694, registered to and operated by Taquan Air Service of Ketchikan, Alaska, crashed during takeoff from the water near Port Johnson, Alaska, located about 18 miles southwest of Ketchikan. The on demand air taxi flight, operating under 14 CFR Part 135, was departing the location of the accident and the destination was Ketchikan. A company visual flight rules flight plan was in effect and visual meteorological conditions prevailed. The certificated airline transport pilot was fatally injured and the passenger received minor injuries. The airplane sank in 400 feet of water. According to the company, the passenger stated they had just taken off. They were in the initial climb phase when the right wing started to dip and the nose started to drop. The pilot had the control yoke turned all the way to the left and applied full power. He then yelled that they were going in. The airplane crashed into the water and the passenger exited the airplane through the windshield. He did not see the pilot. During a telephone interview with the passenger, he stated that there was very little wind or wave action in the takeoff area. The takeoff area is protected by trees and the shoreline. After takeoff, as the pilot flew the airplane and exited the bay from which they took off, the passenger heard the pilot say, "here comes a gust." The passenger stated he could see the ripples on the water as a gust of wind struck the airplane. The engine power increased and the airplane began to descend. Then the right wing pointed at the water and the left wing was pointing at the sky. The passenger does not remember how the airplane struck the water. He exited the airplane after attempting to release his seat belt four times. He exited through the missing windshield. The airplane was recovered in 411 feet of water near Port Johnson. As the salvage crew raised the airplane, the engine and instrument panel, the entire cockpit section forward of the pilot, broke away and sank. The remainder of the airplane was stored on a barge. The wreckage could not be examined due to the high winds. The barge could not sail across the open water due to the high winds. The wreckage was blown off the barge approximately 5 days later and the wreckage sank. It has not been recovered. The pilot's remains were discovered still strapped into his seat when the fuselage was recovered. An autopsy of the pilot was conducted by Dr. M.W. Stewart, 3100 Tongass Avenue, Ketchikan, Alaska.