(a) The Coast Guard may revoke the approval of a TPO if the organization has demonstrated a pattern or history of:

(1) Failure to comply with this part;

(2) Substantial deviations from the terms of the approval granted under this part; or

(3) Failures, including ethical violations, conflicts of interest, or inadequate performance, that indicate to the Coast Guard that the TPO is no longer capable of carrying out its duties as a TPO.

(b) If the Coast Guard seeks to revoke the approval of a TPO, it must:

(1) Notify the TPO in writing of the intention to revoke the approval;

(2) Provide the details of the TPO's demonstrated pattern or history of actions described in paragraph (a) of this section; and

(3) Advise the TPO that it may appeal this decision to the Coast Guard in accordance with the provisions of 46 CFR subpart 1.03.