B&H Rail Corporation

That same year, Conrail sold the DL&W line between Bath and Wayland to the Steuben County Industrial Development Agency.

Primary freight traffic for the railroad was wine and related products, lumber, and general commodities.

In May 1996, shortline Livonia, Avon and Lakeville Railroad (LAL) assumed operation[4] of the county-owned trackage, including the original B&H.

These operations were transferred to the subsidiary Cohocton Valley Railroad in 2001, and later that year this company was renamed B&H Rail Corporation and assumed a long-term lease of Norfolk Southern Railway trackage between Wayland, Bath and Painted Post.

[5] At this time, the LAL embarked on an aggressive track rehab program, replacing many ties.

The original line, designated at the Hammondsport Running Track, continues to be maintained for potential future service.

Some new construction took place on the line from Bath to Painted Post just past the junction where dirt embankments have been built up as if additional sidings were going to be added.

The B&H sold #11 to Dr. Stanley A. Groman for display at his Rail City Railroad Museum in 1955.

After Rail City closed, the locomotive was sold back to the Narragansett Pier Railroad in 1977 to be used in an excursion service which never began.