In the mid 1970's a new vien of high quality coal was discovered in the Belva, WVA to Clendenin, WVA area.  At the time this area was discovered there was not any railroad access to this area.  The closest line the Gauley River Railroad that ran from Gauley Bridge, WVA to just beyond Jodie, WVA.  There was not much online traffic and the railroad owned a couple of old consolidation (2-8-0) steam engines, in barely operable condition.  The GRR however had a couple of old diesel switchers, to serve the line.  Traffic was brought down for interchange with the Chessie, N&W at Alloy, WVA.  Some traffic was forwarded to the Penn Central via Chessie, but due to rate and interchange costs it was a prohibitive cost.  The Gauley was hanging on by a thread.  Dreams about turning this into a tourist line and take advantage of the up and coming tourist traffic from whitewater rafting was still a dream.This was about to change.

The Energy Crisis and the need for more coal put pressure for a rail line to Clendenin area coal fields.  The Penn Central had collapsed and a new player, Conrail, came into play.  West Virginia also had new powerful allies in Congress.  One of these members was a good friend of the Gauley RR. A master plan had been developed.

As part of the wheeling and dealing a majority of the coal rights were sold to Norfolk and Western subsidiary, Pocohantas Holdings.  The N&W struck for a long term lease for the Gauley River Railroad, terms of the deal allowed the Gauley River Railroad to restore its steamers and add one more to its roster.  The owner of the Gauley RR, then was able to fulfill his dream of tourist railroad and whitewhiter rafting resort.

The N&W then convinced the state of West Virginia to take by eminent domain a new right-of-way.  This right of way started at Belva, WVA, continued northerly to Lizemores, up to the Elk River at Big Sycamore.  The right of way then flollowed the Elk to Clendenin, then went northerly again to Walton, Kentuck, Kenna, Given, Mt Moriah and connected to recently abandoned Chessie branch at Angerona, WVA.  From there the state took over the ex Chessie line to Ohio river at Pomeroy.

More wheeling and dealing took place.  As part of the new formation of Conrail and the need for a new highway bridge at Pomeroy, a combination railroad and automobile bridge was built at Pomeroy.  This allowed the N&W to run down to Meigs Junction (Pomeroy, Middleport, Hobson) and interchange with Conrail.  Conrail ended up preferring this route as it avoided the chemical congestion traffic around Charleston.  This also gave Conrail a quicker route to export it's high quality coal from Meigs County Ohio.  In return the N&W also got another outlet to the northeast Ohio steel mills and docks.  Eventually the N&W and Conrail leased the new Gauley River Railroad line. 

The line now sees heavy traffic, as traffic from Meigs junction runs down the line to Alloy, WVA.  From Alloy the traffic follows the N&W's old Virginian line down to Princeton, WVA. Coal traffic then goes on to export at N&W's Lamberts Point.  There is plenty of through traffic, originating coal, lumber and paper goods traffic.  The good times have arrived for the Gauley River Railroad, now a jointly operated railroad by Conrail and the N&W.