In the summers of 1989 and 1991 we made 344 near‐ground level measurements of the ambient geomagnetic field above recent basalts on the island of Hawaii using a three‐component fluxgate magnetometer. We studied 12 surface features, including a lava pond, lava channels, long tilted blocks, smooth sloping surfaces, two fissures, and a deep U‐shaped road cut. We observed substantial differences (up to 20°) between the observed and expected (International Geomagnetic Reference Field, IGRF) magnetic field directions over these features except those composed of shelly pahoehoe and a flat (horizontally) thin lava pond. We also observed inclinations that were systematically shallower than the IGRF field by up to 5°. We show that these shallower inclinations can be explained by the magnetization of the regionally sloping surface of the southern side of the island. We found that all of the observed inclination deflections can be explained by simple two‐dimensional models which assume uniform induced and remanent magnetization parameters in the local terrain. Our observations imply that the inclination deflections cannot be corrected without a complete knowledge of the preexisting terrain and the remanence in the underlying flows upon which the lavas cooled. Since this information is rarely available, it is difficult or impossible to discriminate between dispersion of paleomagnetic directions caused by the magnetic terrain effect and dispersion due to other factors such as paleosecular variation (PSV). We therefore conclude that PSV dispersion parameters cannot be accurately determined from paleomagnetic measurements on highly magnetic volcanic flows. We also suggest that some of the geomagnetic excursions inferred from measurements on volcanic rocks may be at least in part due to the magnetic terrain effect. It is unnecessary to invoke ad hoc mechanisms such as clastic, block, or crustal rotations, distortion of the top crust, or flow deformation to explain the large between‐site dispersions or inclination anomalies observed in many of the paleomagnetic data from volcanic rocks. Our observations also bring into question the general reliability of paleomagnetic pole positions inferred from volcanic rocks, as a systematic inclination deflection due to local and regional slopes and irregular terrain, such as those we observed, would lead to a corresponding error in. the inferred paleolatitude. The magnetic terrain effects also offer alternative explanations for anomalous paleomagnetically inferred plate motions.

The magnetic field due to an azimuthally symmetric distribution of subsurface electric current, which may be associated with vertical hydrocarbon seepage, vanishes above the ground surface. However, geologic conditions in general do not provide perfect isotropic conditions, and, in theory, some magnetic fields can be generated by the magnetoelectric effect. Sedimentary rock sections are relatively isotropic, particularly in the stratigraphic plane. Thus, hydrocarbon seepage‐induced magnetic fields above the ground surface may never be significant, even if strong electric currents are associated with the seepage. All current‐generated magnetic fields, of whatever origin, must obey Ampère’s law; no line integral operation can distinguish a magnetic field having one origin from that of any other origin. Therefore, seepage‐induced magnetic anomalies, if they exist at all, are probably useless for hydrocarbon exploration because it is virtually impossible to distinguish them from other anomalies of unknown origin. Thus, even if hydrocarbon seepage is capable of producing oxidized and reduced zones, the significance of any generated electric currents is very doubtful. Since the seepage‐induced electrochemical model lacks a conducting mass in the columnar reducing zone and/or an electric barrier around the reducing zone, electric potential due to excess electric charges developed between the two zones would tend to dissipate.

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