KRK,

From Kent Stephen's article on the Feather River Railway in issue 14 of The Headlight (published by the FRRS/WPRRHS):

"In 1940 FRPM (Feather River Pine Mills, Inc.) completed a new sawmill at the town of Feather Falls, company officials choosing to build the new sawmill within the company's timber holdings rather than at Oroville on the site of the original mill."

Also...

"Feather River Pine Mills, Inc. and Feather River Railway Company were sold to Georgia-Pacific Corporation in 1955. In October 1961 the railroad was dieselized when G-P transferred SW900 No. 102 from the former Hammond Lumber Company logging railroad at Samoa that had been abandoned when G-P acquired Hammond. No. 102 proved too heavy for Feather River Railway's track and was replaced by ex-Hammond Lumber Co. No. 101 (ALCo S-3) in July 1965. Neither diesel unit was lettered for Feather River Railway. No. 101 was lettered for Oregon Pacific & Eastern Railroad, at the time owned by G-P, and No. 102 was lettered for Georgia-Pacific."

I could not find a reference in the article specifying the final operation date of Shay No. 2 but I hope this helps.

Mike