The Bell 206 helicopter was being operated on water-bombing tasks in support of fire-fighting east of Armidale, NSW. As the pilot commenced a climb following water pick-up, the `engine out audio warning sounded, and the master warning annunciator illuminated as the engine failed. The pilot jettisoned the water and Bambi bucket and conducted an autorotative descent into a cleared area. During the landing the helicopter's main rotor contacted the tail boom and severed the tail rotor assembly. The pilot, the sole occupant, was not injured. The pilot indicated that immediately following the accident, he drained approximately 0.5L of fuel from the helicopter to check for water contamination and fuel boost pump operation.
