YES

TRS:

  app(app(app(compose(),f),g),x) -> app(f,app(g,x))

linear polynomial interpretations on N:

  app_A(x1,x2) = x1 + x2 + 1
  app#_A(x1,x2) = x1 + x2 + 1
  compose_A = 0
  compose#_A = 0

precedence:

  app = compose