On December 24, 1999, about 1045 Alaska standard time, a wheel equipped Cessna T207A airplane, N1864, sustained substantial damage after colliding with snow-covered terrain during takeoff from the Bethel Airport, Bethel, Alaska. The flight was being conducted under Title 14, CFR Part 135, as a scheduled commuter flight, operated by Grant Aviation, Inc., as Flight 281. The certificated commercial pilot sustained minor injuries, and the five passengers aboard were not injured. Visual meteorological conditions prevailed, and company visual flight rules (VFR) flight following procedures were in effect for the flight to Chefornak, Alaska. During a telephone conversation with the National Transportation Safety Board investigator-in-charge on December 24, the pilot reported that he did a preflight inspection of the accident airplane in anticipation of a 0900 departure time. He said that during the preflight inspection, he removed an accumulation of frost from the wings, and horizontal stabilizer. After completing the preflight inspection, the original departure time was delayed due to ice fog, and low visibility. He said that about 2 hours later the weather appeared to be improving, so he elected to load his passengers on board the airplane, anticipating that weather conditions would improve soon. The accident pilot reported that while taxiing to the active runway, weather conditions were still below basic VFR conditions, with fog and low visibility. He said that as the accident airplane neared the active runway, the Bethel Air Traffic Control Tower (ATCT) reported that weather conditions had improved, and that the Bethel Airport was now operating under VFR conditions. The accident airplane was then issued a takeoff clearance for runway 18, at intersection golf. The accident pilot stated while departing runway 18, about 20 feet above the runway, the engine surged followed by a loss of power. He said that emergency engine procedures did not restore power. The airplane collided with snow-covered terrain during an off-airport emergency landing, and sustained substantial damage to the fuselage and wings. On December 25, company and insurance personnel retrieved the airplane from the accident site, and transported it to the operator's hangar at the Bethel Airport. On December 28, a Federal Aviation Administration (FAA) airworthiness inspector, Anchorage Flight Standards District Office, traveled to Bethel, and examined the airplane at the operator's facility. He reported there were no engine or airframe mechanical anomalies revealed during the inspection. The FAA inspector said that he was present when the engine was started and operated while still attached to the accident airplane. He added that the engine was only operated at idle speed due to substantial airframe damage. The engine was removed from the accident airplane and transported to Anchorage, Alaska. On January 13, 2000, with the National Transportation Safety Board investigator-in-charge present, the engine was operated on an engine test stand. The engine produced full rated power. A pilot-rated Alaska State Trooper, with extensive experience in the accident airplane make and model, examined the airplane following the rescue of the pilot and passengers. He reported that during his inspection he discovered that the wings, horizontal stabilizer, and elevators had an accumulation of frost. The closest weather observation station is Bethel. On December 24, at 1053, an Aviation Routine Weather Report (METAR) was reporting in part: Sky conditions and ceiling, 100 feet scattered; visibility, 6 statute miles; wind, 020 degrees at 6 knots; temperature, minus 23 degrees F; dew point, minus 27 degrees F; altimeter, 29.87; remarks, patches of fog.