Shallow-water environments typically include sediments containing thin or low-shear layers. Numerical treatments of these types of layers require finer depth grid spacing than is needed elsewhere in the domain. Thin layers require finer grids to fully sample effects due to elasticity within the layer. As shear wave speeds approach zero, the governing system becomes singular and fine-grid spacing becomes necessary to obtain converged solutions. In this paper, a seismo-acoustic parabolic equation solution is derived utilizing modified difference formulas using Galerkin's method to allow for variable-grid spacing in depth. Propagation results are shown for environments containing thin layers and low-shear layers.