At about 1245 Mountain time, the airplane impacted terrain after a rejected takeoff. The commercial pilot received minor injuries, his seven passengers were not injured and the airplane, which was owned and operated by the pilot, sustained substantial damage. The skydiving flight was operating in visual conditions. Just after retracting the landing gear, the airplanes right engine completely failed. The pilot elected to abort the takeoff, but was unable to extend the landing gear prior to the airplane settling back down to the terrain. During the touchdown and slide over rough/soft terrain, the airframe was substantially damaged.