On August 10, 2002, approximately 0945 Pacific daylight time, a Hughes 269A helicopter, N90271, registered to Seaquest Expeditions Inc. of Eugene, Oregon, and being flown by a student pilot on his first solo flight, was substantially damaged when its tail rotor contacted terrain during liftoff from Crest Airpark (S36), Covington, Washington. The solo student pilot was not injured in the accident. Visual flight rules (VFR) weather conditions (ceiling 2,200 feet broken, visibility 10 statute miles), with winds from 290 degrees true at 4 knots, were reported at Seattle-Tacoma International Airport, Seattle, Washington, at 0956, and no flight plan had been filed for the 14 CFR 91 local instructional flight. In a written statement the student pilot reported that the accident flight was his first attempt to hover the helicopter, solo. He reported that after his instructor exited the helicopter, and as he raised the collective in preparation for takeoff "The helicopter jumped into the air and moved to the right." He said that he inadvertently over corrected for the situation, and the helicopter started to move toward where his instructor was standing. In an effort to control the movement of the helicopter he "...immediately pulled the cyclic to rear." The helicopter's tail rotor subsequently struck the ground, and sustained substantial damage.