On May 22, 2004, at 1030 mountain daylight time, a Piper PA-25-235, N8586L, was substantially damaged when it struck terrain 15 miles south of Flagler, Colorado. The commercial pilot on board reported no injuries. The local aerial application flight was being conducted under the provisions of Title 14 Part 137 without a flight plan. Visual meteorological conditions prevailed. The flight originated at approximately 1000. In his written statement, the pilot reported he was aerial spraying 15 miles south of Flagler. He said he refueled the airplane the load before the accident with 15 to 20 gallons of fuel. The pilot reported his bubble fuel gage indicated he had 10 to 15 gallons of fuel. The pilot said he was in a turn, reversing course to make his last pass on a field before returning to the airstrip. About 200 feet above the ground, the engine lost power. The pilot said he leveled the wings, put the nose down, and thought he would be okay. He said however he had no airspeed to flare and hit the ground hard. In an interview shortly after the accident, the pilot said he was "100 percent certain" that he ran out of fuel. The pilot said that the indicator ball in the bubble fuel gage had remained at 10 gallons for some time. He said the ball usually "jiggles." The pilot said he suspected something was wrong and was going to check it out after he landed. An examination of the airplane showed the main landing gear separated aft. The right wing was broken aft at the fuselage. The cowling was crushed aft and one propeller blade was bent aft underneath the cowling. Flight control continuity was confirmed. An examination of the airplane's systems revealed no anomalies.