In this paper we describe a hierarchical approach for modeling fluid flow i
n a naturally fractured reservoir with multiple length-scale fractures. Bas
ed on fracture length relative to the finite difference grid size, fracture
s are classified as short disconnected fractures, medium-length fractures,
and long fractures. Effective gr id-block permeabilities, associated with t
he short- and medium-length fractures, are used as input to a finite-differ
ence simulator. We also present a separate transport equation for flow thro
ugh long fractures to capture effects of large-scale high permeability path
ways. Simulation results from the new hierarchical approach are compared wi
th those from the conventional dual porosity/permeability model.