A stochastic continuum model of a fractured medium conditioned on a sp
ecific set of field data is developed. Both the more conductive fractu
res and the less permeable matrix are generated within the framework o
f a single-continuum stochastic model based on nonparametric indicator
geostatistics. In the stochastic model the fracture zones are disting
uished from the matrix by imposing a long-range correlation structure
for a small fraction (the highest approximately 11%) of the hydraulic
conductivity in the preferred planes of fracture zones. Results of flo
w and transport simulation in three dimensions (3D) are used to illust
rate the large spatial variability of point measurements, but for spat
ially integrated quantities the variability is reduced and results bec
ome less sensitive to correlation structure. Therefore it is suggested
that spatially integrated quantities may be a more appropriate choice
for predicting flow and transport in a strongly heterogeneous medium
in that they are more commensurate with the level of our ignorance of
the site. The issue of spatial variability giving rise to uncertainty
in the site characterization of a heterogeneous medium and the predict
ion of transport results is also addressed. Simulations are carried ou
t for 3D transport from point tracer sources at hundreds of locations
in the medium. The breakthrough curve from each point source release i
s characterized by two parameters: the mean transport velocity and the
dispersion coefficient. The results are presented as a statistical di
stribution of the transport parameters, thus quantifying the uncertain
ty in predicting flow and transport based on a limited amount of site
characterization data.