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If you really like the Southern locos, why not just make your KG&N a subsidiary of the Southern? They had plenty of them, and the only evidence was the initials on the locos. You could use the Southern locos and rolling stock as-is, but still freelance the railroad itself....
...I really wouldn't want to model the petrochemical industry with all the spaghetti tangles of piping and valves and storage tanks.
If you really like the Southern locos, why not just make your KG&N a subsidiary of the Southern? They had plenty of them, and the only evidence was the initials on the locos. You could use the Southern locos and rolling stock as-is, but still freelance the railroad itself.