A common problem in magnetotelluric (MT) sounding is the presence of static shifts in the data, i.e., a vertical shifting of the log-apparent-resistivity versus period curves relative to regional values (Jones, 1988; Jiracek, 1990; Berdichevsky et al., 1989). These static shifts are due to the presence of small-scale, shallow conductivity anomalies near the measurement site. Electric charge builds up on near-surface anomalies that are small in comparison to the skin depth of the electromagnetic (EM) fields. The charge buildup produces a perturbation of the measured electric fields from their regional values that persists to arbitrarily low frequencies. Incorrect removal of these local distortions leads to incorrect interpretation of the deeper targets of investigation.