On August 20, 2010, about 1530 eastern daylight time, a Piper PA-22-150, N4850A, registered to Alderdice Inc. and recently purchased by the private pilot, was substantially damaged when it collided with terrain immediately after departure from Skyhaven Airport (76N), Tunkhannock, Pennsylvania. Visual meteorological conditions prevailed and no flight plan was filed for the 14 Code of Federal Regulations Part 91 local instructional flight. The certificated flight instructor (CFI), and private pilot/owner receiving instruction, were uninjured. According to the CFI, they had departed with approximately 18 gallons of fuel on board the airplane. On the fourth takeoff about 50 feet in the air, just pass the departure end of the runway, the engine quit. The fuel valve had been selected to the right fuel tank for takeoff, then after the engine quit, the pilot switched the fuel selector valve to the left fuel tank, and the engine restarted; however, the airplane impacted a tree, landed in a river, nosed over, and came to rest inverted. According to a mechanic, the private pilot had purchased the airplane about one or two weeks prior to the accident. When he examined the airplane after the accident, there was no propeller damage other than a few scratches, the air box was damaged, and the left wing leading edge spar and associated ribs were damaged. According to a Federal Aviation Administration inspector that examined the airplane after it was recovered from the river, the left wing spar was bent, the nose gear was damaged, the lower portion of the firewall was buckled, and the engine mounts were bent. Compression was confirmed on all engine cylinders using the thumb method, fuel was in the carburetor, and the fuel screens were free of debris. Flight control continuity was verified to all control surfaces from the control column. The pilots had also reported to him that the airplane had flown about two and one-half hours since it had been fueled. The airplane was a four-place, high wing, with fixed tricycle landing gear. It comprised of a steel tube fuselage and an aluminum frame wing, covered with fabric. It also had two 18 gallon fuel tanks, one located in each wing and equipped with a Lycoming O-320-A2B 150 horsepower engine. According to the pilots the airplane had an annual inspection in October 2009. The Piper PA-22 Type Certificate Data "NOTE 2" states in part "The following placards must be displayed…On right fuel quantity gauge…'No take-off on right tank with less than 1/3 tank.'" According to a phone interview with the CFI the placard was installed on the airplane. The Lycoming Operators Manual for the O-320 series engine, section 3, "Operating Instructions" revealed that the fuel consumption could be as much as 14 gallons per hour.