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Discrete fracture analysis provides the crucial link between the complex geometries and structural control of reservoir geology and the finite difference continua of reservoir engineering. This approach is applicable to reservoirs where heterogeneity is the result of the combination of a primary permeability defined by features such as faults, fractures, thin beds, and karsts and a secondary permeability, with primary or secondary porosity, in the rock blocks. This paper describes the implementation, validation, and application of this approach in the FracMan model, utilizing an interactive stochastic geologic simulator and a conjugate gradient fmite element solver.