On September 28, 1997, approximately 0730 mountain daylight time, a Beech 58, N365C, operated by Cutter Aviation, Inc., doing business as Cutter Flying Service, Inc., was destroyed by impact forces and postimpact fire when it collided with terrain near Mora, New Mexico, approximately 24 miles northeast of Santa Fe, New Mexico, in the Pecos National Forest and Wilderness Area. The airline transport rated pilot and one passenger sustained serious injuries. Visual meteorological conditions prevailed, and a company VFR flight plan had been filed for the nonscheduled domestic passenger air taxi flight being conducted under Title 14 CFR Part 135. The flight originated at Albuquerque approximately 0650. In his accident report, the pilot said he performed a complete preflight inspection of the airplane, and noted the fuel tanks were full and fuel samples drained were clear. He obtained a weather briefing, computed a weight and balance, and gave his passenger a thorough safety briefing. After takeoff, the pilot climbed to 9,500 feet, then "step climbed" as the terrain rose to "avoid oxygen deprivation and comply with FARs." As the airplane passed through 12,000 feet, the right engine lost power. The pilot said he confirmed this by noting low manifold and fuel pressures. When he switched the right engine boost pump on, there was an increase in fuel flow, but full power was not restored. The pilot said that despite the left engine developing full power and the propeller set at fine pitch, the airplane was unable to maintain altitude. He also said if he feathered the right propeller, the airplane would descend to single engine service ceiling and since the right engine manifold pressure indicated some power being developed, he elected to make a landing in an open meadow. The pilot extended approach flaps and lowered the landing gear, but he did not believe the landing gear extended fully before the airplane contacted the ground. According to an FAA inspector who went to the scene, the airplane slid across the ground and struck a large rock with its right wing, turning the airplane 90 degrees to the right. The airplane then caught fire. The two occupants exited the airplane via the cabin door over the right wing. The passenger corroborated the pilot's report. He added that it was a beautiful day and the pilot was step climbing the airplane to provide him a better view of the landscape. The passenger added he was an avid hunter. Disassembly and inspection of the right engine failed to disclose any discrepancies that would have been causal to the loss of power. Most of the engine accessories were destroyed in the postimpact fire. The single engine service ceiling of the Beech 58 at maximum gross weight is 7,000 feet.