A visiting pilot was being trained on the motorised glider over a number of days. During this flight the pilot and his instructor intended conducting several circuits. On the climb out after the second touch and go, the engine stopped at 250 to 300 ft above ground level. The instructor took over and elected to land on a cross runway that was situated behind the aircraft, as the terrain off the end of the strip in use was not suitable for a landing. This decision required that he conduct a 180 degree turn to the left, followed by an 80 degree turn to the right, to align with the runway. The second turn was conducted at a low height, and required all the pilot's concentration. He then realised that the aircraft was lined up on the paddock next to the aerodrome. During the landing roll the aircraft struck a ditch and the landing gear was torn off.
The pilot reported that the engine stopped because the aircraft had run out of fuel. He had logged the fuel state but did not check the log prior to this flight. He had forgotten about flying conducted about two days earlier, during which the engine was used extensively. The clear plastic tube fuel gauge was reported to be inaccurate as it often became blocked at the bottom of the tank.
A portable emergency locator transmitter was carried behind the seats but it was not turned on.