On August 7, 1997, at approximately 2000 hours Pacific daylight time, a Grumman American AA-5, N6086L, was destroyed when it impacted mountainous terrain approximately 18 miles southeast of Monterey, California. The pilot and one passenger were fatally injured. The aircraft was owned and operated by the pilot, and had departed Monterey Airport at 1900 on the day of the accident for a local personal flight. Visual meteorological conditions prevailed at the time of the accident and no flight plan had been filed. On September 24, 1997, a teardown inspection of the aircraft engine was performed by a Lycoming accident investigator and witnessed by an Federal Aviation Administration (FAA) inspector. The engine had incurred extensive fire damage and the magnetos were destroyed by heat. The Lycoming representative stated that there was no evidence of incorrect assembly, internal failure, or excessively worn parts. The exhaust muffler was opened and no evidence of collapsed baffles or other flow restrictions were found. The Lycoming representative stated that the engine appeared to have been serviceable at the time of the accident. The remainder of the aircraft was destroyed by impact and fire and it was not possible to verify fuel state or control system continuity. The FAA inspector who surveyed the crash site stated that there was no evidence of in-flight structural failure. There was no damage to ground structures or injuries to ground personnel, however, all of the undergrowth in the immediate area of the impact site had been destroyed by the postaccident fire.