I'm working with relatively large LAS files and only needing small portions at a time. Is it possible to use a Shapefile to "trim" the excess points before transformation?
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Yes, that should be possible. Either through a Clipper or by using a feature from the Shapefile as the initiator for a FeatureReader.
Yeah, using a the shapefile as the filter in a FeatureReader is a good option here.
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