The physics governing galvanic distortion of natural source electromagnetic induction measurements is reexamined beginning from first principles. The conditions under which a decomposition of measured magnetotelluric response tensors and magnetic transfer functions is applicable are described, and the form of the decomposition describing distortion of the electric and magnetic fields is derived directly from the integral equation defining the scattering of electric and magnetic fields by surface heterogeneities. The inclusion of magnetic field galvanic distortion leads to indeterminacy of the regional magnetotelluric response in the form of scaling by frequency‐dependent, complex factors controlled by two unknown real constants. This is a generalization of the well‐known static shift effect from electric field galvanic distortion and can in principal be removed if the magnitude and phase of the regional response are known at some frequency. Distortion of the magnetic transfer function is shown to be even more indeterminate, containing a term proportional to one of the regional magnetotelluric responses which is inseparably additive to the regional magnetic transfer function, as well as the complex scaling seen for magnetotellurics. A set of simultaneous nonlinear equations describing the full electric and magnetic field galvanic distortion decomposition of the magnetotelluric response tensor and magnetic transfer function is derived, and methods for their solution are described, including implementation of jackknife error estimates. The full magnetotelluric decomposition is applied to severely distorted data from the Canadian shield and seafloor data from the EMSLAB experiment. In both cases, magnetic field galvanic distortion is important at periods under a few thousand seconds. This suggests that greater attention to galvanic distortion of the magnetic field is needed during magnetotelluric surveys.
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