The Loop operated continuously without major issues for 30 years from its rebuilding date until 2004, when contract negotiations between the Colorado Historical Society and the Loop's operator - Georgetown Loop Railroad, Inc. - broke down. GLR rejected the new contract demands and the CHS began seeking out new bids, eventually rewarding Railstar, Inc. with a 10-year management contract. GLR owned all of the original equipment being used on the Loop and moved it all to the Colorado Railroad Museum for storage, leaving Railstar to purchase new equipment to use since they didn't own any narrow-gauge rolling stock at the time they accepted the new contract. The Loop became plagued with problems after the Railstar takeover, including a lack of steam locomotives, derailments that resulted in Federal Railroad Administration investigation, and unreliable equipment that would often break down and leave the railroad closed for days at a time during peak tourist season. At its lowest point, annual Loop ridership under Railstar fell from 130,000 riders per year to 51,000 riders per year. This left both local businesses and railroad enthusiasts very displeased with the state of the railroad.