On August 19, 2006, about 1030 Pacific daylight time, an experimental Beach Baby Ace C, N86677, collided with power lines during the takeoff climb from the Fallon Municipal Airport, Fallon, Nevada. Thereafter, the airplane descended into terrain less than 1 mile south of the airport. The pilot/owner operated the airplane under the provisions of 14 CFR Part 91 as a personal flight. The airplane sustained substantial damage. The non-certificated pilot, the sole occupant, was seriously injured. Visual meteorological conditions prevailed for the local area flight and a flight plan had not been filed. The flight was originating at the time of the accident. A detective from the Churchill County Sheriff's Department interviewed the pilot. The pilot reported that he had performed one touch-and-go landing and takeoff. During climb out, he banked the airplane to the left and struck power lines. The airplane came to rest inverted on Rattlesnake Hill, near the intersection of Rio Vista and Paiute Drive. A responding deputy reported that the airplane came to rest inverted; he noted a burn mark on the bottom of the airplane, and fuel leaking from the right wing tank from the filler cap. A witness to the accident stated that he observed the airplane takeoff. About 100 feet above ground level (agl), the airplane appeared to have "difficulty" gaining altitude. The airplane had almost flown out of sight, when it hit power lines. Another witness reported that the engine sounded normal; however, the airplane was in an "extreme" nose high, tail low attitude, and appeared to be having difficulty gaining altitude. The airplane traveled about 1/4 mile from the end of the runway, and reached an altitude of 100 feet, when it began "settling rapidly" toward the ground and struck power lines. The witness saw a bright flash from the broken power line followed by a thud. He then notified law enforcement and advised that a small airplane had gone down in the area. To date, the pilot operator has failed to submit the National Transportation Safety Board Pilot/Operator Aircraft Accident Report (NTSB Form 6120.1/2).