Cross Section Labeling - Segment Labeling the Existing Ground

Hi

I am attempting to label segments using the Annotate Cross Section tool.  I have selected "include Segments" and have unchecked points and features.  I am only trying to place one label at a time by manually selecting the points I want to label between.  When I select apply, every segment in the existing terrain is being labeled.  Every label I produce, this happens to the existing ground line.  Below is an example of what the labeler is producing.

Thanks for any help,

Brandon