YES

TRS:

  __(__(X,Y),Z) -> __(X,__(Y,Z))
  __(X,nil()) -> X
  __(nil(),X) -> X
  and(tt(),X) -> activate(X)
  isNePal(__(I,__(P,I))) -> tt()
  activate(X) -> X

max/plus interpretations on N:

  ___A(x1,x2) = max{1, 1 + x1, x2}
  __#_A(x1,x2) = max{2, 1, 0}
  nil_A = 0
  nil#_A = 0
  and_A(x1,x2) = max{0, 1, x2}
  and#_A(x1,x2) = max{0, -1, -1}
  tt_A = 0
  tt#_A = 3
  activate_A(x1) = max{1, x1}
  activate#_A(x1) = max{0, -2}
  isNePal_A(x1) = max{0, -1}
  isNePal#_A(x1) = max{4, 2}

precedence:

  and > nil = tt = activate > __ = isNePal