The private pilot taxied out and departed for the personal flight from a private grass runway in an unregistered homebuilt airplane. A witness reported that, when the airplane reached 150 feet above the ground, the engine stopped. The pilot then turned the airplane back toward the runway, and it then dropped and impacted terrain. The airplane did not have an airworthiness certificate, and no maintenance records were found. Examination of the engine pistons found evidence of scoring, consistent with piston seizure. The accident is consistent with a loss of engine power due to piston seizure and with the pilot subsequently losing airplane control while maneuvering back to the runway.
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