Sec. 26.318  Dismissal and return of applications.

    (a) Any application may be dismissed without prejudice as a matter 
of right if the applicant requests its dismissal prior to designation 
for hearing or, in the case of applications filed on Forms 175 and 175-
S, prior to auction. An applicant's request for the return of his 
application after it has been accepted for filing will be considered to 
be a request for dismissal without prejudice. Applicants requesting 
dismissal of their applications are also subject to Sec. 1.2104 of this 
chapter.
    (b) A request to dismiss an application without prejudice will be 
considered after designation for hearing only if:
    (1) A written petition is submitted to the Commission and is 
properly served upon all parties of record, and
    (2) The petition complies with the provisions of this Section and 
demonstrates good cause.
    (c) The Commission will dismiss an application for failure to 
prosecute or for failure to respond substantially within a specified 
time period to official correspondence or requests for additional 
information. Dismissal shall be without prejudice if made prior to 
designation for hearing or prior to auction, but dismissal may be made 
with prejudice for unsatisfactory compliance or after designation for 
hearing or after the applicant is notified that it is the winning bidder 
under the auction process.

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