Date: 201206
Local time of day: 0601-1200
Location: CNO.Airport, CA
Flight conditions: VMC
Light: Daylight
Aircraft: M-20 B/C Ranger
Operator: FBO
Operating under: Part 91
Flight plan: None
Mission: Training
Flight phase: Landing
Airspace: Class D CNO
ATC / advisory: Tower CNO
Aircraft component: Fuel Selector
Component problem: Improperly Operated
Reporter organization: FBO
Reporter function: Pilot Not Flying; Instructor
Reporter qualification: Flight Crew Flight Instructor; Flight Crew Commercial; Flight Crew Instrument
Human factors: Human-Machine Interface; Situational Awareness
Anomaly: Aircraft Equipment Problem Critical
Detector: Person Flight Crew
When detected: In-flight
Result: Air Traffic Control Issued New Clearance; Flight Crew Landed in Emergency Condition; Flight Crew Returned To Departure Airport
Contributing factors: Human Factors; Aircraft
Primary problem: Human Factors

Narrative: I was providing flight instruction in order for the student to obtain complex time. We completed multiple maneuvers and had returned to Chino Airport (CNO) and perform a couple of takeoffs and landings on Runway 26L. We had just performed a touch-and-go and were approximately 500 FT AGL when the engine instantly stopped. I asked the student; 'What did you just do'? I was thinking that he might have done something that I could undo. However; he said; 'I didn't do anything!' I immediately took the plane and made a left turn towards Runway 3. During the turn I informed Chino Tower that we had an engine out and planned on landing on Runway 3. The Tower granted us permission to land on Runway 3 and I continued our approach. I had the student assist me by putting the landing gear down and  during final approach to Runway 3; I verified that the landing gear was down and locked. I made a standard landing on Runway 3 and continued to Taxiway Alpha. I made a left turn onto Taxiway Alpha and stopped. There was no one injured and no damage to the aircraft; plus; we never violated any direction from ATC during this occurrence. The Mooney M20B has a fuel selector valve; one fuel gauge; and a fuel tank switch. The fuel selector valve allows for selecting the fuel source and has three positions: left; off; and right. The fuel gauge shows the fuel quantity for the selected fuel tank. The fuel tank switch allows for selecting which fuel tank the fuel gauge is indicating and has two positions: left and right. This configuration allows for having the fuel selector valve on one fuel tank while the fuel tank switch is on the other tank causing the fuel gauge to indicate an irrelevant quantity without any warning. This inconsistency can occur very easily with the Mooney M20B without any warning. This inconsistency is the root cause of this occurrence resulting in a fuel tank running out of gas.The following corrective actions were developed to eliminate this inconsistency in the future: Verifying that the fuel selector valve and fuel tank switch are consistent - During pre-flight - During flight; every 15 minutes - During GUMPS; every landing Switching fuel source every 30 minutes - Utilizing fuel evenly - Increasing fuel situational awareness




Synopsis: An M20 had engine failure at 500 FT after a touch and go. The Instructor quickly took control from the student and made a safe landing on an intersecting runway. The fuel tank feeding the engine was found to be empty with the fuel gauge indicating sufficient fuel but selected to a different tank.