First off, Conrail never went bankrupt and indeed at the time of the sell
out to NS and CSX, it was quite healthy.
As to the Somerset Railroad, as of my time with Conrail at least up till
1997, the Somerset Railroad between CP-59 and SOMR which is MP 15.55
the line was controlled by the Niagara Branch Dispatcher while the portion
in the plant area between SOMR and West Somerset as well as the rest of
the trackage in the plant area was under the control of Somerset Plant
Material Handling supervisor.
I believe Somerset Railroad contracted with Conrail to dispatch this line
and NORAC rules were at the time in effect.
The Somerset timetable of the period was patterned exactly after the
Conrail Albany Division and System timetables of the period.
Coal trains to the plant were operated by extra list crews out of Buffalo for
the most part.