The County addressed this when one of the prospective rail operators raised the issue.
Request for Proposals for an Operator of Freight and Recreational Passenger Rail Service on the Santa Cruz Branch Rail Line
Questions from Prospective Proposers (updated 03/28/2012)
Q22: Will the fact that the Surface Transportation Board (STB) denied Sierra Northern Railway’s petition to revoke its exemption to lease and operate the Santa Cruz Branch Rail Line impact the timing for this request for proposals process to secure an operator for the Santa Cruz Branch Rail Line?
A22: No. According to legal counsel the STB denial of Sierra Northern Railway’s petition was based on the fact that Sierra Northern Railway used the wrong procedures to be relieved of its lease obligation. Sierra Northern Railway stopped operating the Santa Cruz Branch Rail Line at the end of 2011 and Union Pacific took over operations at the beginning of 2012.