On September 7, 2001, about 1030 central daylight time, a Bell 47G, N6327D, registered to Helicopter Services of Alabama, collided with terrain four miles northeast of Berry, Alabama, after experiencing a loss of lateral cyclic control. The public use law enforcement surveillance flight was conducted under the provisions of Title 14 CFR Part 91 with no flight plan on file. Visual meteorological conditions prevailed at the time of the accident. The helicopter sustained substantial damage, and the commercial pilot and passenger were not injured. The local flight departed Richard Arthur Field in Fayette, Alabama, about 0940. According to the pilot, the helicopter had completed several surveillance orbits to both the left and to the right at altitudes ranging from approximately 150 feet to 800 feet above ground level (AGL) and at speeds ranging from approximately 40 mph to 65 mph. The passenger, a Fayette County, Alabama, Sheriff's Office employee, directed the pilot where to fly. The pilot, at the passenger's request, had begun searching for a place to land. While at approxmately 800 feet AGL at approxmately 50 mph, the pilot "lowered the collective and did a 180-degree very steep approach leveling off back to the east approx 150 feet AGL." The pilot flew over the intended landing area approximately 100 feet AGL and 65 mph and reported hearing "a pop or a bang outside the helicopter, and at that same time I had started a shallow climb out to gain some altitude." The pilot started a left turn and noticed "mushiness" in lateral cyclic, then a loss of left and right cyclic contol. The pilot said the helicopter "started feeling like the rotor disc was tilting left and right on its own, back and forth." The pilot lowered the collective and started a descent, which the pilot reported "seemed to lessen the rotor system's left and right tilt." The pilot attempted to reach a clearing, but the helicopter went to the left on its own. As the helicopter neared the ground, the pilot attempted to slow it down with the collective, and it tilted back to the right. The helicopter impacted a small tree, touched down on its right skid first, and flipped up on its nose. After the helicopter came to rest, fuel poured in onto the backs of the pilot and passenger. They punched out the bubble of the helicopter, unfastened their seat belts, and exited the helicopter. Damage to the helicopter included: separated tail rotor, destroyed main rotor blades, broken engine mounts, separated cabin, broken bubble, separated left skid toe, fuel tanks bent on inside by mast, and bent stabilizer bar rod and counterweights. An examination of the wreckage by an airframe and powerplant mechanic revealed "ground metal shavings" in the damper frame assembly where the control horn contacts the splined shaft (see attached mechanic's statement). The mechanic reported that "a failure on this part would have caused control loss." A review of records from the Bell Helicopter Flight Safety Department revealed that N6327D had been previously involved in two accidents and was subsequently rebuilt and modified from a D-Model to a G-Model.