Mineral ownership isn’t always divided just by surface acreage — it can also be divided vertically, by depth or formation. These divisions, known as depth severances, are increasingly common in active basins like the Permian, and they can significantly affect what you own and what it’s worth.
What Is a Depth Severance?
A depth severance occurs when mineral rights or leasehold rights are split at a specified depth or formation boundary. For example, a deed might convey minerals “from the surface to the base of the Bone Spring formation,” with the grantor reserving everything below. Or a lease might terminate as to all depths below the deepest producing horizon at the end of its primary term — a common provision in modern leases (sometimes called a Pugh clause as to depth, or vertical Pugh clause).
How Depth Severances Are Created
By conveyance. A mineral deed or assignment can expressly limit the depths conveyed.
By lease terms. Depth-termination provisions release non-producing depths back to the mineral owner after the primary term or a continuous development period ends.
By partial releases. An operator may voluntarily (or per lease obligation) record a release of specified depths, freeing those horizons for new leasing.
Why They Matter to You
If your lease has terminated as to deeper depths, you may own open minerals in formations an operator wants to drill — which can mean a new lease bonus and a modern royalty rate, even while shallower depths remain held by production under the old lease. Conversely, unrecognized depth severances in your chain of title can mean you own less (or more) than you think. Verifying exactly which depths you own requires careful review of every conveyance, lease, and release in the chain.
Depth Severances and Selling Your Minerals
Because depth-severed interests are more complex to evaluate, casual buyers often misprice them — or avoid them entirely. Husky Land Services performs detailed title examination as part of every acquisition, including tracing depth severances, term assignments, and partial releases, so our offers reflect what you actually own. If you have minerals in Texas, New Mexico, or Oklahoma — simple or complicated — contact us for a cash offer.