(a) The Chief, Office of Operating and Environmental Standards (CG-OES), U.S. Coast Guard withdraws a delegation if: (1) It is determined that the application for delegation contained a material misrepresentation.

(2) An Approval Authority fails to comply with a condition of delegation.

(3) An Approval Authority is incompetent.

(b) When a delegation is withdrawn, the Chief, Office of Operating and Environmental Standards (CG-OES), U.S. Coast Guard gives to the Approval Authority:

(1) Written notice of the facts or conduct believed to warrant the withdrawal.

(2) Opportunity to submit oral or written evidence.

(3) Opportunity to demonstrate or achieve compliance with the applicable requirement.

[45 FR 37213, June 2, 1980, as amended at 47 FR 50496, Nov. 8, 1982; 69 FR 58352, Sept. 30, 2004]