Abstract: A method for operating a reservoir simulator includes performing a reservoir simulation based on a spatial reservoir model that represents a subterranean environment that includes a reservoir where, for a portion of the spatial reservoir model, the performing includes utilizing a phase model operational mode; based at least in part on a phase transition in the portion of the spatial reservoir model to a multi-phase region that includes a microemulsion, implementing a multi-phase operational mode; and, based at least in part on a phase transition in the portion of the spatial reservoir model from the multi-phase region to a different phase region, implementing the phase model operational mode for the portion of the spatial reservoir model.