A Swearingen SA227-AC Metro III, N2691W, operating as Key Lime flight 168, was substantially damaged after an uncontained engine failure during climb at Rifle, Colorado. The pilot was not injured. Dark night instrument meteorological conditions (IMC) prevailed at the time of the accident and an instrument flight rules (IFR) flight plan had been filed for the cargo flight. The airplane departed from Garfield County Regional Airport (RIL), Colorado, at 22:37 and was destined for Denver International Airport (DEN), Colorado The pilot reported that during climb, when still well below the tops of nearby mountains, he heard a “bang” followed by a complete loss of power and engine fire indications from the right engine. After completing appropriate checklist items the pilot declared an emergency and diverted to Grand Junction Regional Airport (GJT), Colorado, for an instrument approach and an otherwise uneventful landing at 23:11. A postaccident examination of the airplane revealed the second stage turbine rotor from the right engine had separated. One portion of the rotor exited through the left side of the engine and nacelle structure, penetrated the right side of the fuselage, and came to rest inside the fuselage wall. Other portions of the separated rotor exited through the right side of the engine. There was thermal damage to the engine and the inside of the nacelle structure, but no evidence of a sustained fire in that area. Probable cause: “The uncontained engine failure due to the fatigue failure of the second-stage turbine rotor disk.”