On September 21, 2007, Central Oregon and Pacific Railroad (CORP) elected to shut down most of its Coos Bay branch.

This action was taken after it was revealed that the nine aging tunnels on the line required repairs that were internally estimated to cost up to $7 million.

Some local opinion regarded this action unfavorably, as the railroad asked for state funds to repair their private rail line.

The suit claims that CORP failed to provide the required 180 days' notice that it would shut down a leased spur to the bay's North Spit.

[3] On November 21, 2008, the Surface Transportation Board ordered CORP to sell part of the branch to the Port of Coos Bay for $16.6 million.