This paper describes and demonstrates the use of the coupledTOUGH-FLAC simulator for geomechanical shear-slip (failure) analysis inmultiphase fluid-flow reservoir-engineering applications. Two approachesfor analyzing shear-slip are described, one using continuum stress-strainanalysis and another using discrete fault analysis. The use of shear-slipanalysis in TOUGH-FLAC is demonstrated on application examples related toCO2 sequestration and geothermal energy extraction. In the case of CO2sequestration, the shear-slip analysis is used to evaluate maximumsustainable CO2-injection pressure under increasing reservoir pressure,whereas in the case of geothermal energy extraction, the shear-slipanalysis is used to study induced seismicity during steam productionunder decreasing reservoir pressure and temperature
