I’d like to start with your spell description.
You list the spell as ‘Elemental Earth’, range ‘personal’, and gave it an area of effect? I do not have the Dragon issue available at the moment, but on appearances your spell contradicts itself. If its range is personal, then the area of effect (if any) should also be limited to personal. This of course means that the spell can not affect the earth, but would have to affect the caster. Thus it has to be Transmutation.
Component of a ‘Dryad’s Tear’ and reuseable. I will grant that in a BR campaign such a component would be rare, but on the two active WotC worlds (GH and FR) such a component would be hard pressed to qualify as uncommon, let alone rare. Second, it really doesn’t fit the earth theme. Try ‘the claw of a bullette’ or ‘earth shed by a free-willed earth elemental’ or ‘a complete hair from the head of a living stone giant (root and all)’.
As to moving through the earth, if the spell targets you then you are adapted to move through the earth and there is no reason to have to hold your breath or need to come up for air. Your restricions for cutting levels do not make sense.
Just free form looking at it, I’m seeing a spell of at best fifth level power, but probably a solid sixth. Not to mention the movement rate discrepancy, really – miles per turn. Or the problem of lakes and rivers, or maintaining a sense of direction or position undeground. Basically your setting your character up to being a tasty GM treat.
Let me chuck this little freeform out for you (like I said, I don’t have the article immediatly on hand).
Embrace of the Land
School Transmutation(Earth)
BR Specific – True Magic
Level Wiz/Sor 5 ish
Range Personal
Components V,S,M,AF,special
Casting time 10 minutes
Duration 10 minutes/level
Save none
SR no
Through this obscure ritual a mage seeks attunement with the magical essence of the very earth around him. Upon successful completion of the spell, the caster gains the ability to merge with the land about him and to travel just below the surface as if he were flying. The caster may only travel at such speeds while completely submersed and gains no knowledge of what is occurring on the surface above him. The caster does become attuned the magnetic pull of the land and is able determine direction of travel and a vague sense of distance travelled. The caster can choose to travel partially submersed or on the surface, but is then limited to his normal movement rate. As an added benefit, the caster gains damage reduction 10/+1 vrs objects and items created of earth and wood.
The spell is not without drawbacks however. First, the caster is unable to cast magic for the duraton of the spell and for one hour thereafter. The drain of the his magical essence is so strong that even blood abilities are temporarily unavailable and nulified during that time. Note, even should the spell be cancelled prematurely, the loss of magic persists the entire allotted time and could leave the mage in dire straits. Second, if the caster is subjected to transportative magics or loses contact with the earth for more than a minute then the spell collapses. Finally, the most dangerous feature, if the caster comes into contact with a body of surface water, the spell is instantly destroyed with the following effects: the caster takes 2d6 points of damage (real, no save), must make a Fort save DC15 or lose consciousness, and is immediately expelled into the body or water (and a rapid death if he got KO’d).
The spell is cast as a one person ritual and has many requirements. The material components include the hair of a mole or gopher, 50 gp worth of silver dust, and two live earthworms. The arcane focus consists of a gem whose uncut value is 500 gp or greater. The spell itself can only be cast in lands that contain a source 1 or greater.
Please feel free to critique this and offer opinions on how well I guessed by calling it a level five.