On November 6, 2001, at 1445 central standard time, a Piper PA-28-161, N523PU, piloted by a certified flight instructor (CFI) and dual student, was substantially damaged when on landing it overran runway 22 (2,825 feet by 160 feet, turf), at the New Ulm Municipal Airport (ULM), New Ulm, Minnesota. The dual student held a private pilot certificate. The instructional flight was operating in visual meteorological conditions and was not on a flight plan. The flight was conducted under the provisions of 14 CFR Part 91. The CFI and student were not injured. The intended local flight originated from the Mankato Regional Airport (MKT), Mankato, Minnesota, at 1400. In a written report, the CFI said that he and his student were performing a simulated engine failure to runway 22 at ULM. He said that, "...upon reaching final we were high. In my [judgment] however we had room to stop safely. Upon touchdown I applied [brakes], and realized that we were slipping on the grass, and would not be able to stop. So I added full power with one notch of flaps for a short field takeoff. As the end of the runway approached I knew that we would not have enough airspeed to takeoff. Therefore I closed the throttle and applied full [brakes] as we went into the plowed field off the end of [runway] 22." During an interview with a Federal Aviation Administration inspector, the CFI told the inspector that he took control of the airplane at the touchdown. In his written report, the CFI indicated no mechanical malfunction of the airplane and no anomalies were found during a postaccident examination of the airplane.