Found out the main reason getting excursions out of the State College area is hard: insurance.

When the lines installed Positive Train Control (PTC) systems, the company that sold them the PTC systems did not want to be sued at all, should a crash happen. What happened was that the insurance for the North Shore Railroad Company would be SIGNIFICANTLY higher, as in, too high to run any trains for them to run on Norfolk Southern lines.

The main company that has rail cars for excursions is based in Northumberland, but to contract Norfolk Southern to transport the cars is a pricey proposition. It can be done, but it would need to be done twice to get to Lock Haven.

Unfortunately there was about 7 miles of track torn up that, if it still existed, would have allowed for a direct connection between Williamsport and Lock Haven/Mill Hall. To make matters even more complicated, it looks like there has been construction on top of that old railbed, so it isn't a very straightforward repair. (Also there is a rail bridge that needs to be fixed on this line.)