Abstract: A computer system and method of automatically generating a Local Grid Refinement (LGR) gridded model of a gas reservoir. A geologic file includes information identifying the locations of one or more wells according to root grid cells within a volume of the earth to be modeled. User inputs specify the number of hydraulic fractures from each well, and such parameters as the fracture length, etc. User inputs also specify the number of “splits” of the root grid cells containing hydraulic fractures; those root grid cells are then split into finer resolution grid cells of increasing width within the root grid cells containing the fractures. For horizontal wells, user inputs indicate the number of splits of root grid cells containing the lateral portions of the wellbore. Non-orthogonal and complex fractures are processed by a “nested” LGR approach.