Abstract: A method and system are described for creating a subsurface model and using the subsurface model in hydrocarbon operations. In the method and systems, a global model and one or more local models are obtained. A simulation is performed with the global model to generate global deformation results. The global deformation results are used to determine boundary conditions for the one or more local models. The one or more local models are simulated to generate local deformation results which include fracture characterization for the local model. The global model may or may not be updated based on the local deformation results from the simulation of the local model.