Techniques for developing a hydrocarbon well employing hydraulic fracturing, including determining a geometric signature of a bi-wing hydraulic fracture of the well, including a fracture height (hf), half-length (Xf) and width (wf) of the fracture, determining fracture model parameters for the fracture, including a stimulated cell width (Dy), length (Dx), and width (n), determining a fracture conductivity diluting factor (FCDF) for the bi-wing hydraulic fracture based on the geometric signature and the fracture model parameters, applying the FCDF to a fracture permeability (Kf) to determine a model permeability (Kfm) for the fracture, and determining a reservoir model of the reservoir that includes the model permeability (Kfm) associated with the cells of the reservoir model that represent a region of the hydrocarbon reservoir that corresponds to the location of the hydraulic fracture.