On August 7, 1998, approximately 1120 mountain daylight time, a Cessna 150J, N60564, was substantially damaged when it collided with terrain during a forced landing 1 mile south of Alexander Municipal Airport, Belen, New Mexico. The private pilot, the sole occupant aboard, sustained minor injuries. Visual meteorological conditions prevailed, and no flight plan had been filed for the test flight being conducted under Title 14 CFR Part 91. The flight originated at Belen approximately 5 minutes before the accident. The pilot told FAA inspectors that he detected water in the fuel during his preflight, and thought he had drained all the water from the tanks. In his accident report, however, he made no reference to his preflight. Shortly after departing runway 21, the engine lost power but was "surging". The pilot tried to land on a road but was unable. The pilot stated the "aircraft [was] in ground effect with [the] stall warning horn in operation." He "flew within 30 yards of [a] road when [he] could no longer keep in ground effect with power that the engine was producing." The pilot made a forced landing on soft sandy soil south of the airport. The aircraft rolled approximately 20 feet and nosed over. FAA inspectors reported draining a considerable quantity of "rust red" water from both fuel tanks and debris from the gascolator. The Federal Aviation Administration has confirmed that the pilot's airmen certificate was suspended in 1989 for 60 days and then was reinstated. In December 1997, his mechanic's license was "amended" but is now suspended. An FAA representative also reported that although the airplane serial number matched the registration number, the latter had been removed from FAA's central registry. The airplane was listed as sold on December 24, 1991, but no new owner's name was listed. The previous owner was contacted and he stated that the airplane had been destroyed. Inspectors said there was no valid Certificate of Airworthiness or Registration Certificate in the airplane.