A tracking receiver system is used to track the progress of a downhole tool along a subsurface path having a desired grade. The tracking receiver system is adapted to detect a reference line originating from a reference line receiver and to determine the position of the downhole tool along a desired subsurface path relative to the reference line. In an alternative embodiment the tracking receiver system may comprise a global positioning satellite system to provide information used to determine the position of the downhole tool relative to the desired subsurface path.