On September 16, 2002, about 0945 eastern daylight time, a Mooney M20J, N201ZC, was substantially damaged during a forced landing, following a power loss after takeoff from Canadaigua Airport (D38), Canadaigua, New York. The certificated private pilot was seriously injured. Visual meteorological conditions prevailed for the intended flight to Lake Villa, Illinois. No flight plan was filed for the personal flight conducted under 14 CFR Part 91. According to his written statement, one day prior to the accident, the pilot diverted to D38 due to weather. The pilot utilized a self-service fuel tank to add 7 gallons of fuel to the left tank, and 14 gallons of fuel to the right tank. The fueling was accomplished outside, in the rain. The pilot further stated that his friend covered the respective fuel tank openings, while the pilot fueled the airplane. After checking the weather, the pilot decided to secure the airplane overnight, and return the following morning. The airplane remained parked outside, in the rain. On the day of the accident, during the preflight inspection, the pilot shook both wings. He then sumped both fuel tanks, and did not observe any water. The pilot then utilized the cockpit drain, to drain fuel from both tanks. He started the engine, and waited for approximately 15 minutes. The pilot then taxied to runway 31, performed a run-up, and did not observe any discrepancies. He initiated a takeoff roll on the 3,200-foot long runway, with the fuel selector positioned to the left tank. After retracting the landing gear, the pilot noticed the first indication of a power loss. The engine began to surge and the airplane settled. The pilot positioned the fuel selector to the right tank, checked the mixture control, and verified the fuel pump was on. The engine continued to surge, and the pilot positioned the fuel selector back to the left tank. He then performed a gear-up forced landing to a field at the end of the runway. During the forced landing, the airplane struck rocks, and came to rest upright. The wreckage was examined by the Federal Aviation Administration (FAA) inspector. He rotated the propeller by hand, and was able to confirm crankshaft and camshaft continuity, attain thumb compression, and observe spark at all leads. The inspector's examination revealed that the right fuel tank was intact, and the left fuel tank had ruptured. The fuel in the right tank was light blue in color, clear, and absent of debris. However, the inspector recovered approximately 2 ounces of fuel from the left tank, and 1 ounce of water. Additionally, the inspector observed water in the fuel manifold. The FAA inspector subsequently examined fuel from the airport fuel farm, and from another aircraft that had recently been fueled. He did not observe any contamination in the fuel farm or other aircraft. FAA Airworthiness Directive (AD) 85-24-03 was written to preclude fuel contamination and water entrapment in fuel tanks, and pertained to the make and model accident airplane. The FAA inspector reviewed the aircraft logbooks, and noted that the respective AD was complied with. The reported weather at an airport approximately 18 nautical miles northwest of the accident site, included rain from the evening hours on September 15, into the morning hours of September 16. Additionally, the reported rainfall at an airport approximately 20 nautical miles southeast of the accident site, from 1600-2200 on September 15, was 1.5 inches.