The short version is UP was leasing the branch to Sierra Railroad, and the County had an agreement with the SERA to continue operating the line after the County completed their purchase. SERA's owner had coveted the branch for decades and actively lobbied the public and the local agency to get the concession for freight (UP requires someone to assume ops) and some sort of excursion service (required as a condition of state purchase funds). Lots of big talk from SERA at public meetings and in the press about dinner trains, etc etc. After their two year lease with UP was up, SERA claimed they never really wanted the branch and were just taking it off UP's hands in order to gain "promised" traffic at the Port of Sacramento that never materialized. Cue a mad dash to line up another operator so the sale can go through this year. Roaring Camp always wanted in on the passenger ops, but balked at being responsible for the freight service on the whole line. Perhaps things are different now that no freight customers exist outside of Watsonville.