A steam environmentally generated drainage system and method for producing hydrocarbons from a formation using in situ steam generation and gravity drainage. The system and method includes a first well as a circulation and production well, a second well as a circulation, injection and combustion well, and a third well as an injection well. The second well is configurable to have a fuel tubing, a gas tubing, and an igniter. The third tubing injects a vaporizable fluid into the formation so as to be vaporized by combustion gases created by the in situ combustion in the second well. Hydrocarbon fluids are produced from the first well and lifted to the surface for process. The third well can be configured to also produce combustion gases so as to control a gas chamber pressure of a gas chamber created by the rising combustion gases.