Filter Vertices Geopak

I've extracted graphic triangles into a .dat file using extract as spots.  So, the lines in the dat file are formatted as such:

 1 2562437.786011 461985.167805 407.895357
 1 2562437.786011 461985.434322 407.905932
 1 2562438.919000 461986.490000 407.960000
 1 2562437.786011 461985.167805 407.895357
 1 2562437.786011 461985.167805 407.895357
 1 2562438.919000 461986.490000 407.960000
 1 2562438.903007 461985.167805 407.907368
 1 2562437.786011 461985.167805 407.895357
 1 2562437.786011 461985.434322 407.905932
 1 2562437.786011 461986.558044 407.938226
 1 2562438.919000 461986.490000 407.960000

etc.....

fyi....  There are 18,770,696 lines in the .dat file

I would like to be able to filter these spots at a z tolerance of .2 and an xy tolerance of 2.0 to reduce the size of tin I am going to create.

After I hit process, I get an error.

Can anyone help?

Am I not using the tool correctly?

Thanks,