On April 7, 2010, about 0915 Atlantic standard time, a Cessna 404, N6035, was substantially damaged after an in-flight loss of engine power and forced landing at the Mercedita Airport (TJPS), Ponce, Puerto Rico. The airplane was operated by Policia de Puerto Rico. The certificated commercial pilot and two passengers were not injured. Visual meteorological conditions prevailed at the time, and no flight plan was filed for the public use surveillance flight. The flight was originating at the time of the accident. The pilot reported that shortly after takeoff, about 200 feet above ground level, the right engine surged and started to lose power. The pilot feathered the right propeller and advanced the throttle on the left engine. The airplane was losing altitude, so the pilot elected to land straight ahead in a grassy area beyond the departure end of the runway. The airplane contacted a fence about 700 feet past the departure end of the runway. Structural damage to the wings and fuselage resulted. The pilot reported that there were 230 gallons of fuel on board at takeoff. A pilot-rated passenger and an observer were on board the airplane at the time of the accident and reported that the sound of an “explosion” came from the right engine at the time of the engine power loss. The wreckage was recovered to a hangar at the airport. A cursory examination of the wreckage did not reveal a reason for the engine power loss. A compression check was performed on the right engine cylinders and compression was observed on all cylinders. The left wing fuel tank registered 400 pounds of fuel. The right wing tank did not register any fuel quantity; impact damage to the right wing affected the integrity of the tank. Both wing tank drains were activated and fuel was available from both drains. The engines were removed from the airframe and sent to an engineering facility for teardown and examination. An inspector with the Federal Aviation Administration provided oversight. The right engine, serial number 823723-R, had accumulated about 385 hours since factory overhaul. The most recent inspection occurred on February 28, 2010. The engine had accumulated about 95 hours since the last inspection. The right engine was examined first. The oil pan was removed and examined for metallic particles; none were found. The alternator, starter, and magnetos were removed; no anomalies were found. The air induction tubes were secure and intact. All spark plugs were removed and the electrodes exhibited a dry, black appearance. The engine rotated freely when turned through by hand. The valve train and the exposed accessory gears appeared to operate normally. Internal engine continuity was established with no anomalies noted. Fuel injectors were visibly inspected with no blockages observed. The following right engine components were removed and bench-tested: the fuel servo, engine-driven fuel pump, fuel manifold, both magnetos, and both ignition harnesses. All removed components bench-tested satisfactorily with no anomalies found. The left engine was then examined to include confirmation of internal engine continuity and bench-testing of components. No anomalies were found. The 0850 weather observation for TJPS included the following: few clouds at 2,500 feet, surface winds from 050 degrees at 8 knots, 10 statute miles visibility, temperature 28 degrees Celsius, dew point 18 degrees Celsius, and an altimeter setting of 30.00 inches of mercury.