(a) A moratorium permit may be suspended by the commissioner at any time upon one or more of the following grounds:

1. (1) Materially false or inaccurate statements were made in the petition or supporting papers;
2. (2) The holder of a moratorium permit has failed to comply with any of the conditions and limitations set forth in the moratorium permit;
3. (3) The holder of a moratorium permit has exceeded the scope of the work as set forth in the petition;
4. (4) Conditions are revealed during construction which will require modification of already approved plans and specifications and no amendment to the moratorium permit has been approved by the central tidal wetlands permit administrator pursuant to section 660.11 of this Part.
5. (5) Conditions are revealed following issuance of the moratorium permit which may require modification or cancellation thereof in order to achieve the policy of the act.

(c) A holder of a moratorium permit shall have a right to a public hearing after the suspension of a moratorium permit provided that such holder files a written request for a public hearing within 30 days of his receipt of a notice of suspension. The request for a public hearing shall set forth reasons why the moratorium permit should not be revoked.

1. (1) The holder of the moratorium permit shall serve the parties in interest at his own expense with copies of the request for a public hearing.
2. (2) Within 15 days of the receipt of such a request, the commissioner shall cause a public hearing to be held. In the event that the holder of a moratorium permit does not request an opportunity to be heard within 30 days of his receipt of the notice of suspension, the moratorium permit shall be deemed revoked.

(d) Upon review of the hearing officer's recommendations and report, the commissioner may:

1. (1) Reinstate the permit with or without changes in conditions or limitations; or
2. (2) Revoke the permit.