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This paper presents a procedure for data filtering to compensate for the effects of the towed body dynamics (heave), in shallow marine seismic reflection records. A method to extract an approximate record of the heave contribution to data collected is outlined. The method utilizes the time to water-sediment interface on each acoustic return record to construct the required approximate heave motion record. The frequency response of the heave component record provides the basis for a proposed linear model for the heave motion. A formulation of the heave compensation requirement as a Kalman filtering problem in optimal linear estimation theory is given. A discussion of the computational aspects and practical results are discussed to conclude the paper.