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We estimate the source parameters of #3 microearthquakes by jointly analyzing seismograms recorded by the 32-level, 3-component seismic array installed in the SAFOD Pilot Hole. We applied an inversion procedure to estimate spectral parameters for the omega-square model (spectral level and corner frequency) and Q to displacement amplitude spectra. Because we expect spectral parameters and Q to vary slowly with depth in the well, we impose a smoothness constraint on those parameters as a function of depth using a linear first-difference operator. This method correctly resolves corner frequency and Q, which leads to a more accurate estimation of source parameters than can be obtained from single sensors. The stress drop of one example of the SAFOD target repeating earthquake falls in the range of typical tectonic earthquakes.