The extended sequential filter has been applied to the problem of dynamically determining the geocentric coordinates of two laser satellite tracking stations. This filter provides significant advantages over the classical batch methods through (1) fewer iterations required for convergence, (2) wider radius of convergence, and (3) availability of the parameter estimate evolution. Processing the data sequentially readily identities the data arcs required to minimize the effects of geopotential model errors. By means of the Smithsonian standard earth 2 and the Goddard earth model 1 geopotentials to reduce laser range observations of the Beacon Explorer-C satellite, is is demonstrated that a two-pass arc is optimal for estimating the height of one station and all coordinates of the second station while minimizing the effect of geopotential model error. These two-pass estimates are in good agreement with other determinations that utilize considerably more data as well as different satellites.